Which process initiates fulfillment in the replenishment cycle?

Study for the Supply Chain Management Exam. Prepare with multiple choice questions, each question comes with detailed explanations. Ace your exam with confidence!

Order entry is the process that initiates fulfillment in the replenishment cycle because it represents the point at which a customer’s demand is captured and documented within the supply chain system. When an order is entered, it triggers a series of actions aimed at ensuring that the necessary inventory is available to meet that demand.

This includes updating inventory levels, assessing stock availability, and determining whether replenishment from suppliers is required. The efficiency of the order entry process can directly influence the speed and effectiveness of the entire replenishment cycle, as it sets in motion the supply chain activities that respond to customer requirements.

Inventory control, while critical in managing stock levels and ensuring that the right amount of product is available, primarily deals with maintaining and tracking inventory rather than initiating fulfillment. Logistics management focuses on the physical movement and storage of goods, which comes into play after an order is placed. Supplier negotiations are typically concerned with establishing terms, pricing, and relationships with suppliers, which are foundational activities but do not directly start the fulfillment of customer orders.

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