How do pull systems of planning and control operate in a distribution environment?

In a pull system of planning and control, particularly within a distribution environment, the focus is on responding to actual demand rather than relying on forecasts or predetermined schedules. Each distribution center managing its own inventory aligns perfectly with this principle, as it allows for flexibility and responsiveness to local customer needs. This decentralized approach empowers individual distribution centers to replenish their stocks based on the immediate demand they experience, thus reducing excess inventory and minimizing waste.

By managing inventory locally, these centers can adapt more swiftly to fluctuations in demand, prioritize fast-moving items, and ensure that they have the right products available at the right times. This setup promotes efficiency in operations and improves service levels, ultimately leading to better customer satisfaction.

In contrast, centralizing inventory management could hinder these benefits, as it may lead to longer lead times in fulfilling orders and an inability to swiftly adapt to changes in local market conditions. Therefore, the decentralized approach of each distribution center managing its own inventory is key in a pull system's operation, making it the correct answer.