Where does the replenishment cycle primarily occur?

The replenishment cycle is primarily associated with the retailer/distributor interface because this is where inventory levels are monitored and restocking decisions are made to ensure that products are available for consumers. At this interface, retailers work with distributors to maintain the right stock levels based on demand forecasting and sales data, ensuring that shelves are stocked with the right products at the right time.

In many retail environments, the effective management of the replenishment cycle is crucial for minimizing stockouts and reducing excess inventory, which ultimately affects sales and customer satisfaction. This relationship facilitates a smooth flow of goods and information, allowing retailers to respond quickly to changes in demand.

While other interfaces, such as the manufacturer/supplier or distributor/manufacturer, play significant roles in the overall supply chain, the replenishment cycle's primary focus is on the ongoing operational processes that occur between retailers and distributors, emphasizing order fulfillment and inventory management.