A comparative study of push and pull production planning strategies in a hard disk parts manufacturing company

A comparative evaluation of push, pull and a combination of push-pull production strategies for a multi-product two-stage production system is presented. A mathematical model is developed to determine EBQ and optimal batch splitting and is applied to a case of a manufacturing company producing hard disk parts. The results obtained are compared with the existing practice. It is shown that a push policy results in the highest total system cost while the pull system-the least, with the hybrid policy inbetween. It is recommended that a switchover to optimal hybrid push-pull policy is called for from the present non-optimal push policy. Cost reduction potential for such a switchover is estimated.