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LA Pushpull Analysis

The document compares inventory management strategies of using a push or pull system across hot and cold product categories. It shows that using a pull system results in lower total costs for both hot and cold products, with savings ranging from 15.91% to 86.70% depending on the product category and features. Specifically, the cold smart product sees the highest savings of 86.70% under a pull system due to significant reductions in inventory, shipping, and picking/packing costs.

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MuhammadAbdullah
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67 views7 pages

LA Pushpull Analysis

The document compares inventory management strategies of using a push or pull system across hot and cold product categories. It shows that using a pull system results in lower total costs for both hot and cold products, with savings ranging from 15.91% to 86.70% depending on the product category and features. Specifically, the cold smart product sees the highest savings of 86.70% under a pull system due to significant reductions in inventory, shipping, and picking/packing costs.

Uploaded by

MuhammadAbdullah
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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An Avrg

store
Hot Smart Hot feature
Pull Push Pull Push
Onhand
inventory Onhand
level 5 145.6363636 inventory level 5 96.3030303
Inventory
cost per Inventory cost
week $100.00 $2,912.73 per week $40.00 $770.42
Avrg wkly Avrg wkly
sales 136.2033898 136.2033898 sales 84.5423729 84.5423729

Shipping cost Shipping cost


per week $1,634.44 $326.89 per week $1,014.51 $202.90
Pick/pack
cost per Pick/plack cost
week $136.20 $14.52 per week $84.54 $9.35
Total cost Total cost per
per week $1,870.64 3254.135747 week 1139.05085 982.680175
Savings 42.51% Savings -15.91%

Cold Smart Cold feature


Pull Push Pull Push
Onhand
inventory Onhand
level 2 24.63157895 inventory level 2 17.44
Inventory
cost per Inventory cost
week $40.00 $492.63 per week $16.00 $139.52
Avrg wkly Avrg wkly
sales 2.023255814 2.023255814 sales 6.26666667 6.26666667

Shipping cost Shipping cost


per week $24.28 $4.86 per week $75.20 $15.04
Pick/pack
cost per Pick/pack cost
week $2.02 $1.10 per week $6.27 $1.53
Total cost Total cost per
per week 66.30232558 498.5897185 week 97.4666667 156.086667

Savings 86.70% Savings 37.56%


100%
% Savings
Pull vs. push 80%

60%
Cold-Smart 86.70%

% savings by Pull
40%
Cold-Feature 37.56%
20%
Hot-Smart 42.51%

0%
Hot-Feature -15.91%
-20%

-40%

Inventory Shipping Picking/Pack


Push cost cost ing cost
22 Hot-Smart $2,913 326.888136 14.520339

20 Hot-Feature 770.4242424 202.901695 9.35423729

15 Cold-Smart 492.6315789 4.85581395 1.10232558

11 Cold-Feature 139.52 15.04 1.52666667

Total $88,413 $11,488 $540

$100,440

Inventory Shipping Picking/Pack


Pull cost cost ing cost
22 Hot-Smart 100 1634.44068 136.20339
20 Hot-Feature 40 1014.50847 84.5423729
15 Cold-Smart 40 24.2790698 2.02325581
11 Cold-Feature 16 75.2 6.26666667
Total $3,776 $57,439 $4,787
$66,002
% saving 34.29%
86.70%

42.51%
37.56%

-15.91%

Cold-Smart Cold-Feature Hot-Smart Hot-Feature

Inventory Picking/Pac
cost Shipping cost king cost
Push $88,413 $11,488 $540

Pull $3,776 $57,439 $4,787

$120,000

$100,000

$80,000

Picking/Packing cost
$60,000
Shipping cost
$40,000
Inventory cost
$20,000

$0
Push Pull

NET Difference b/w push and pull: $34,439

Percent Saving: 34.29%


Picking/Packing cost

Shipping cost

Inventory cost

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