Some of the situations in which the "Push" system is generally successful would be one or more of the following. No two situations are the same, even if some appear similar.
1
Demand is easily and accurately predictable
Due to an accurate forecasting system, the risk of carrying “dead” inventory is less. Moreover, by planning and pushing a steady volume to the market, supply chain and production are also steadied, thereby eliminating delay losses.
2
Conversion costs between products is low due to late point differentiation
If in spite of an accurate forecasting system, there is a difference in the final product type demanded, the stock of Product A can be converted to Product B at a very low cost and pushed on to the market.
3
Very short time demanded from order to delivery
If a very short delivery time or instant delivery from the point of time an order is placed is demanded by the market or customer, there is no option except to supply from stock and avoid revenue losses due to short supplies.
4
Products do not deteriorate during storage
When there is no constraint on “shelf life”, the risk of inventory to be written off is low. Further more, inventory is being used up sooner rather than later, reducing cost of delays.
5
Carrying cost is less than cost of lost business
When a manufacturer is able to make up for the expense of carrying inventory by exploiting the predictable demand, the likelihood of profiting, “net-net” is high when compared with the potential loss of business, customers and reputation by becoming Just-Short-Of-Time rather than Just-In-Time
6
Long, geographically global supply chains with their own unpredictability
Even with the best e-Kanban-powered pull system, the long winding, supply chain that traverses the entire globe is so packed with potential “delay-bombs”, that some “good-old” stock, which can be pushed becomes the life-saver
7
Shipping costs can be optimised by shipping in bulk
When the costs of transporting raw material or components or sub-assemblies can be whittled down to almost next to nothing by using up (say) full container space, stocking up and pushing is not a bad idea
8
Demand profiles across time periods are static
When there is no fluctuations between days of a week, weeks of a month and months of an year, it is profitable to stabilise production and supply chains by planning and pushing an average volume periodically to the market