Demand-Pull Production

Demand-pull production occurs when a company's manufacturing activity increases in response to rising customer demand. Essentially, when more people want a product, businesses respond by producing more of that product to meet the increased demand. This process helps balance supply with customer needs and can lead to more efficient use of resources, as production scales up only when there’s a clear market demand. It contrasts with production driven by anticipation or inventory buildup, emphasizing real, current consumer interest as the main trigger for increased manufacturing.