Which statement about push and pull replenishment is true?

• A. Pull uses forecast-driven production.
• B. Pull replenishes based on forecast-driven production.
• C. Push replenishment uses actual demand signals.
• D. Push uses forecast-driven production.

Answer: (D)

Push replenishment is driven by forecasted demand: production and replenishment decisions are made in advance based on forecasts, pushing inventory through the supply chain to meet anticipated needs. This ahead-of-time planning smooths production and can achieve efficiency and scale, but it risks excess inventory if forecasts miss actual demand. Pull replenishment, in contrast, is triggered by actual demand signals, replenishing only as items are consumed. So the statement that push uses forecast-driven production is the correct one, consistent with the standard push-pull distinction. The other options misstate who drives production—pull is not forecast-driven, and push is not guided by actual demand signals.