What is a defining characteristic of a Pull System compared to a Push System?

A defining characteristic of a Pull System is its reliance on actual customer orders. In a Pull System, production is triggered by demand rather than predictions or forecasts. This means that products are only made when there is a confirmed need from customers, which helps to minimize excess inventory and reduce waste. The system operates on the principle that each step in the production process only produces what is needed to fulfill the next step in the sequence, thus aligning production closely with customer demand.

This approach contrasts with a Push System, where production is based on forecasts, leading to the possibility of overproduction and excess inventory if customer demand does not meet expectations. By focusing on actual orders, a Pull System enhances responsiveness to customer needs and can improve overall efficiency and customer satisfaction. The other options do not accurately describe this fundamental aspect of how Pull Systems operate compared to Push Systems.