Question

Which of the following is true of a push manufacturing system? a. It leads to minimal inventories and maximum responsiveness. b. In this system, finished goods are made to coincide with the actual rate of demand. c. In this system, just enough new parts are procured to replace those withdrawn. d. It leads to high work-in-process inventories and high levels of indirect labor and overhead.

Answer 1

Answer:

D. It leads to high work-in-process inventories and high levels of indirect labor and overhead

Explanation:

In a push manufacturing system, a company will try to produce and  stock a lot of products in the warehouse even though they haven necessarily found the buyers for those products.  They accumulate the stock based on their future projection.

This is why They have high amount of high work-in-process inventories and overhead. Typically, this type of system work really well with products with long shelf life such as Clothings.