A Pull system is likely to struggle to meet demand during demand spikes.Group startsTrue or False

Analysis of the Statement

1. Understanding Pull Systems: A pull system in supply chain management is designed to produce or order items based on actual demand rather than forecasted demand. This approach minimizes excess inventory and waste by only producing goods when there is a confirmed order.

2. Demand Spikes: A demand spike refers to a sharp increase in customer demand for a product over a short period. This can occur due to various reasons, such as seasonal trends, sales promotions, or sudden market changes.

3. Challenges During Demand Spikes:

   • In a pull system, the production or ordering is aligned with the existing demand.
   • When demand spikes unexpectedly, the system may not have the capacity or inventory to respond quickly enough to fulfill the increased orders.
   • This can lead to delays in delivery and potential customer dissatisfaction since the system is not designed to accommodate sudden increases in demand efficiently.

Conclusion

Given these considerations, the statement "A Pull system is likely to struggle to meet demand during demand spikes." is True. A pull system's reliance on actual demand rather than forecasts can lead to challenges in situations of unexpectedly high demand.