Which system is characterized by distribution decisions being made at the field warehouse rather than the central facility?

The decentralized pull system is designed to empower local decision-making regarding distribution, allowing field warehouses to have autonomy in managing inventory levels and responding to local demand. In this system, the needs of individual locations are evaluated on-site, and distribution decisions are made closer to where the actual demand occurs. This can lead to a more responsive and agile supply chain, as local managers have the flexibility to react quickly to changes in customer demand without needing to wait for directives from a centralized authority.

In a decentralized pull system, inventory is replenished based on actual consumption rather than forecasts. This aligns well with lean principles, as it reduces excess inventory and minimizes waste by aligning supply with actual market conditions. The field warehouses can adapt their inventory levels and make timely decisions to meet local customer needs, which enhances service levels and efficiency.

The other systems mentioned typically involve greater central control over distribution decisions or rely on push strategies, where products are produced and pushed through the supply chain based on forecasted demand rather than actual consumption. Thus, the decentralized pull system stands out for its emphasis on localized, demand-driven decision-making.