GSP on Distribution and Supply Chain - Pull System and Replenishment

Dr. Eliyahu M. Goldratt



Level of TOC knowledge acquired:



2hrs. 43min.

Designed for:

Consultants, Executives, Implementers and Managers


Distribution and Supply Chain


Buffer Management, Pull System/Replenishment and Throughput Accounting


Chinese simplified, Chinese traditional, English, Russian and Spanish


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With the exception of companies whose stated business is retail, most companies tend to ignore distribution. This is a huge mistake. Since every company is a link in a supply chain, most already realize that as long as the end consumer has not bought, nobody has sold. The biggest clot in the supply chain - the majority of the inventories - are usually found in the distribution stage. If a company wants to prosper its managers must understand how to help the distribution link to drastically improve its performance.

Your organization will learn how to carry out practical changes and what are the points you should take into account to have a successful implementation.

Pull System - trigger supply based on actual consumption.

Replenishment - supply the minimum necessary amount to protect availability during the replenishment lead time.

Aggregation - placing inventory in the right place to significantly reduce the amount of inventory required to protect against consumption variability.

Includes a Q&A segment.

A knowledge sharing tool for group learning and buy-in to:

  • Ensure the availability at point of sale, while significantly reducing inventory levels.
  • Gain consensus from different stakeholders.
  • Put SIMPLE & common sense procedures that your team can put into practice for IMMEDIATE results by changing from a push to a pull system.
  • Understand the answers to the questions “what to change?” and “what to change to?” to significantly MAXIMIZE AVAILABILITY while MINIMIZING INVENTORY LEVELS.
  • Use as a comprehensive and system-focused learning resource for organizational development, group training, curriculum or library.
  • Learn the procedures and measurements to understand how the supply chain can drastically improve its performance and distribute to maximize availability.


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What is the problem?

◦ What is distribution? and who is impacted by Distribution?

◦ Step 1: Identify the system's constraint

◦ Step 2: Decide how to exploit the system's constraint - Have the right inventory at the right place at the right time

◦ Step 3: Subordinate everything else to the above decision

◦ The distribution cloud

◦ Examine the Assumptions

What is the solution?

◦ What to change to? Improve forecast, improvement replenishment time and improve reliability

◦ Is accuracy of the forecast the same for every stage of the distribution system?

◦ Replenishment time

◦ From "push" to "pull"

◦ GM Cadillac Real case

◦ Operational measurements of the Supply Chain - what is the purpose of measurements?

◦ Primary measurement: Throughput Dollar Day (TDD)

◦ Secondary measurement: Inventory Dollar Days (IDD)

◦ What is the impact?

◦ Measurements for the components of a supply chain: Throughout

◦ Supply chain composed of companies

◦ Internal Supply Chain


Questions & Answers

Download the Viewer Notebook:

The viewer notebook is available for users to aid the learning process when using the GSP Series

The Goldratt Satellite Program (GSP) Company Licensing Agreement

The Video of The Goldratt Satellite Program (GSP)

This Licensing Agreement ("Agreement") sets forth the terms and conditions under which Goldratt's Marketing, Ltd. licenses The Goldratt Satellite Program (GSP) to Licensee.

The GSP was recorded during the live broadcast of the Goldratt Satellite Program presented by Dr. Eliyahu M. Goldratt in eight sessions during March to May 1999.



Goldratt's Marketing, Ltd. hereby grants to Licensee a nonexclusive, nontransferable, license to use the GSP. Licensee is prohibited from sub-licensing, renting, broadcasting, up/ downloading or leasing any portion of the GSP to a third party.

Licensee has the right to enable any individual working for Licensee to view the GSP in full or partially. Each viewer is entitled to multiple viewing of the GSP as long as this Agreement is in effect.


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One Year Access

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Type of License

Single user, Multiple viewers

Single user, Multiple viewers

Multiple users, multiple viewers


Online streaming & Download


LMS (online access through intranet)




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  • The 8 sessions of the GSP Series can be purchased by session or as a complete set. Each session includes a downloadable notebook. The complete DVD set includes one DVD per session.
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  • For individual usage and viewing please consider purchasing the TOC-SLP.

If you are an Academic who is part of a formal educational institution, you are welcome to participate in our Academic Program which allows the Professor/University to teach students about the Theory of Constraints (TOC) using any of the following materials:

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Our Academic Program offers the Professor/University an opportunity to incorporate TOC Materials, such as the The Goal movie, TOC Insights, TOC Self Learning Programs, and GSP Series, into the course curriculum in order to provide a base of knowledge about the Theory of Constraints, and/or to include cases studies and video presentations from in order to show specific examples of how TOC has been implemented.

Interested parties will enter an Academic License Agreement which grants the non-exclusive, nontransferable rights to utilize the material in their course(s) provided that the Academic Licensee requires each student to purchase the material as part of the required course material. Students will pay a special Academic price which is significantly reduced from the list price and is as affordable as any other required text.

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The benefits of participating in an Academic programs are huge. There is no monetary investment for the Professor/University. The Professor will have access to learning material which supports their course and expands their own personal knowledge of TOC. The students will be learning about TOC with materials that provide detailed knowledge and support and deepen their understanding.

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