Pull-Through Production

  

You own a crawfish salad sandwich restaurant. You make the best crawfish salad sandwiches in the city. Part of your secret is keeping the crawfish very fresh (and sassy).

As such, you can’t just fill a giant warehouse full of crawfish. You can only bring in the amount you plan to use in a single day. Also, to make sure each sandwich gets the extra TLC your customers deserve, you only make an order once somebody requests it. Each one gets made from scratch, as the orders come in.

You might not know it, but you're using pull-through production. The term refers to a kind of just-in-time manufacturing. That concept means the item isn't put into production until the company obtains an order. The "pull" part comes from the idea that materials are only "pulled" into the system as needed.

Find other enlightening terms in Shmoop Finance Genius Bar(f)