Table 3.

Comparison of forecast—driven and order—pulled production economics.

Project	Predict to promote	Order pull
Starting point	Reduce purchasing and production cost as much as possible with accurate forecast	Be flexible and responsive to customer needs and changes
Location	Vendor-coupling point	Coupling point—consumer
Material characteristics	Long procurement cycle, variety, and centralized procurement to reduce unit price and production into components	Species is less
Processing requirements	Specialized equipment and skilled workers are generally required	Low requirements for equipment and workers
Supplier selection	Cost and quality	Speed, elasticity, and mass
Implementation method	Standardization, process, and modular	Customized
Economic benefits	Low cost operation	The pursuit of fast response can lead to higher costs
Advantages	Material versatility	Targeted, to meet the needs of customization
Disadvantages	Response period length	Need an inventory to be a buffer