What is the correct sequence of the five steps of Demand-Driven Replenishment?

The correct sequence of the five steps of Demand-Driven Replenishment begins with Analytics to understand demand patterns and inventory levels. This foundational step aids in making informed decisions. Next, Buffer Positioning follows, where specific inventory locations are identified based on demand variability and lead times. This is crucial as it ensures that stock is placed where it can best serve customer needs.

Following that is Buffer Sizing, which involves determining the appropriate levels of inventory at the designated positions to meet demand without overstocking. This step balances service levels and inventory carrying costs. Then comes Replenishment Planning, where strategies and schedules are set for restocking inventory based on the calculated buffer sizes and anticipated demand. Finally, the process concludes with Replenishment Execution, where actual orders are placed or inventory is transferred to replenish the stock as per the planning stages.

Understanding this sequence emphasizes the importance of each step in creating an efficient demand-driven inventory system, ultimately enhancing service levels and reducing excess inventory.