Using a Game to Overcome Two Obstacles to Adopting a Pull System in a Make-to-Stock Production Plant

A low inventory with high availability is the primary objective for make-to-stock production plants. Thus, production plants must choose between two approaches, a push production system or a pull production system. Despite the simplicity of the pull system, and numerous reports of successful implementation, the push system remains prevalent. Interviews with local managers reveal two obstacles to implementing pull systems: (1) lack of a precise definition for pull systems, and a general ignorance among managers regarding the concept of pull systems. As a result, some managers may believe they are running a pull system when they are actually using a push system; (2) lack of confidence in the ability of a pull system to handle significant demand variability. This study designs a make-to-stock production plant game to enable managers to determine whether: (1) they are using a push or a pull system; and (2) a pull system is superior to a push system, even under significant demand variability. The results support our belief that most participating managers still use a push system, and demonstrate that a pull system is superior. We anticipate that the results of this study will increase the willingness of make-to-stock companies and make-to-order companies (especially fashion product manufacturers) to re-examine the potential benefits of implementing a pull system, and encourage them to assess whether such a move is suitable.