Pull-through production

Pull-through production is a just-in-time manufacturing method that releases a production order into the manufacturing process when a customer order is received. This approach minimizes any excess investment in inventory, since it should result in very little raw materials or finished goods inventory. Since there is less inventory on hand, it also means that warehouse space can be minimized, which reduces factory overhead costs. A further advantage of this approach is that the immediate nature of these orders allows a business to offer some degree of customization to customers, which may increase their loyalty to the seller.

The primary downside of pull-through production is that job lots may be as small as a single unit, which requires more overhead to set up equipment within the production process, as well as to place orders for small amounts of raw materials.