Reference no: EM133741378

Question

When you anticipate or forecast demand for something, whether it's a service or a product, you have to adjust your inventory or resources according to the need you've identified. This is used in a Push system. Click on the Scenario button below to listen to a situation and then answer the question that follows. This exercise will allow you to visualize how a Push system functions and identify if shortfalls in the process exist. In a Push system where demand is anticipated or forecasted, you would adjust your inventory accordingly. Read the following scenario and answer the question. Scenario: Let's think about a concession stand at a drive-in theater during intermission. The staff is expecting a lot of people to rush in during this time to stock up on food and drinks. To get ready for intermission, the concession stand workers prepare and fill bags of popcorn, they fill various sizes of cups with beverages, and they fill Styrofoam cups with hot coffee and put lids on them. They display all of these food and drink items in groups in a line formation to make it easier for customers to walk through the line, select the items they want, pay.