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Continuous Replenishment
A strategy where inventory is replenished continuously, based on real-time sales data, to ensure optimal stock levels.
Implications
A supply chain strategy where inventory is continuously monitored and restocked as needed, often through automated systems, to maintain optimal stock levels and minimize stockouts or overstock situations.
Example
Example: A supermarket chain implements continuous replenishment systems to automatically reorder items as they are sold, ensuring shelves are always stocked without excess inventory.
Related Terms
Different from periodic replenishment, which occurs at set intervals, continuous replenishment is ongoing and responsive to real-time demand.
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