## 3 Results--Effectiveness of Pull and Push Strategies in Production and Distribution
### Economic Efficiency of Pull and Push Systems
\begin{table}
\begin{tabular}{l c c c c c} \hline
**No of DCs** & **1** & **1** & **6** & **6** & **6** \\ \hline Strategy & Pull daily & Push daily & Pull daily & Push daily & Push weekly \\ \hline Stand. dev. of sales & & & 5\% & & \\ \hline Ao\(\delta\) & 98.96\% & 99.62\% & 98.92\% & 99.52\% & 98.65\% \\ Warehousing and inv. & 243 & 250 & 268 & 307 & 1060 \\ Transport & 2380 & 2267 & 1779 & 1694 & 339 \\ Lost sales & 332 & 121 & 347 & 153 & 432 \\ Total costs & 2955 & 2638 & 2394 & 2154 & 1831 \\ \hline Stand. dev. of sales & & & 30\% & & \\ \hline Ao\(\delta\) & 98.8\% & 99.4\% & 98.5\% & 99.0\% & 95.6\% \\ Warehousing and inv. & 320 & 377 & 507 & 773 & 1965 \\ Transport & 2380 & 2267 & 1779 & 1694 & 339 \\ Transport & 2380 & 2267 & 1779 & 1694 & 339 \\ Total costs & 3075 & 2827 & 2761 & 2797 & 3709 \\ \hline \end{tabular} Source: own assumptions.  
\end{table} 
Table 10: Costs of distribution of different strategies (Food) [thousands EUR/year]. \begin{table}
\begin{tabular}{l c c c c c} \hline
**No of DCs** & **1** & **1** & **6** & **6** & **6** \\ \hline Strategy & Pull daily & Push daily & Pull daily & Push daily & Push weekly \\ \hline Stand. dev. of sales & & & 5\% & & \\ \hline Ao\(\delta\) & 98.96\% & 99.62\% & 98.92\% & 99.52\% & 98.65\% \\ Warehousing and inv. & 268 & 276 & 296 & 338 & 1169 \\ Transport & 2380 & 2267 & 1779 & 1694 & 339 \\ Lost sales & 622 & 226 & 651 & 287 & 810 \\ Total costs & 3270 & 2769 & 2725 & 2320 & 2318 \\ \hline Stand. dev. of sales & & & 30\% & & \\ \hline Ao\(\delta\) & 98.8\% & 99.4\% & 98.5\% & 99.0\% & 95.6\% \\ Warehousing and inv. & 353 & 416 & 559 & 853 & 2167 \\ Transport & 2380 & 2267 & 1779 & 169 & 339 \\ Lost sales & 701 & 342 & 892 & 619 & 2635 \\ Total costs & 3435 & 3025 & 3230 & 3166 & 5141 \\ \hline \end{tabular} Source: own assumptions.  
\end{table} 
Table 11: Costs of distribution of different strategies (Garment) [thousands EUR/year]. \begin{table}
\begin{tabular}{l c c c c c} \hline
**No of DCs** & **1** & **1** & **6** & **6** & **6** \\ \hline Strategy & Pull daily & Push daily & Pull daily & Push daily & Push weekly \\ \hline Stand. dev. of sales & & & 5\% & & \\ \hline Ao\(\delta\) & 98.96\% & 99.62\% & 98.92\% & 99.52\% & 98.65\% \\ Warehousing and inv. & 357 & 368 & 394 & 451 & 1559 \\ Transport & 2380 & 2267 & 1779 & 1694 & 339 \\ Lost sales & 1658 & 603 & 1735 & 766 & 2159 \\ Total costs & 4396 & 3238 & 3908 & 2911 & 4056 \\ \hline Stand. dev. of sales & & & 30\% & & \\ \hline Ao\(\delta\) & 98.8\% & 99.4\% & 98.5\% & 99.0\% & 95.6\% \\ Warehousing and inv. & 471 & 555 & 745 & 1137 & 2889 \\ Transport & 2380 & 2267 & 1779 & 1694 & 339 \\ Lost sales & 1870 & 911 & 2379 & 1651 & 7028 \\ Total costs & 4722 & 3733 & 4902 & 4482 & 10,256 \\ \hline \end{tabular} Source: own assumptions.  
\end{table} 
Table 12: Costs of distribution of different strategies (Electronic) [thousands EUR/year]. sales fluctuations are higher (30%), then deliveries to six warehouses would also be the most efficient, but with the more flexible \"Pull daily\" delivery system. Since the value of the goods and the parameters of the shipments are important factors of costs, it can be expected that for more expensive goods (\"Electronics\"), deliveries with a higher degree of flexibility will be most effective. And this is indeed the case: with small fluctuations in sales (5%), a system of six warehouses is also optimal, yet the cheapest option of rail transport every week should not be used, but rather daily deliveries with road transport, although this is still in the \"Push\" system. With larger fluctuations in sales (30%) a centralized system is more profitable. This is also the case for \"Clothing\". For similar delivery parameters in the case of Gamma distribution, costs are higher because there is a higher level of inventory, and so the cost of lost sales is higher. For the first variant--deliveries to one warehouse every day in the \"Pull\" method--total costs increase as the value of goods supplied increases.