A3819onent 2

Suppey chain Monagernent

Tmp act 0f Replenishm ent

Po es Or
Safe ty
Toyen tory RePlen ishment Poiciec
how Areaueniy and what ceiernr
Quant ty iney
Yestocked to prevent
sBockootS. Solety nenty.
8afety sock )S kel as boffer to meet

dernand llucuation S v And 8afety

inueiorg (o
Bafeiy iock i8 an enira Gnount
Keot on hand on projeCt
aqins nceviai ni es in
dem arel and Supply ,Uch Os
Sudd en Spikes in ccste e
d emand (or) derays
acts as a belf er yaloLoing a
(emp any
2envce Aeyess andauoid slockcot e that (Onest:
Sn Aost Sajes Cox) oso mey diSsahsticn , Reploshoa:
are Slrategre s Cor) Yule that dijoe
dciae oo Qnd ohen slock
)
 inyatDNs his PoY partradarAy benetrcaa
ihn lead Hmes are short an d pre dr ctabke,
as the orqanization Can ely on timely Yepieskmént
w4neUE holding aeSive Afey gBock Continu cos Yerla:
- hmen! aloo8 tor a Yep onse to chan ges in
Quich
demand. Lohi le Contnuos yeplenishment re duces s
t9 inuent y il ot en deads to moYe hequent cyderig
Ihis Can in crea se and trons ortaton
ger ovdeing
if the
poliy I's use d tor t emg oith do

tomover Contin uo0s Yeplenishmen t i's most ost effete

tov hig h- demand product s ohere the trade-oit
betoeen ) oYd e ing freauency Qnd holding (ostS joshie,
the appYcach,
Cominuo US yepleni'ghment eies Grat
inu
barco de veioy vacking gyele m guch as

( or) auBomgte thertery

manaqement
Softto ave Companie S o(thout Sorh
34siems Stugge to im ple ment this Poy
as any tn invento ny t ke rg
on

nevvQS. hdevs
dccoont

dem and

hecessy to
YeUeL peviods The Sofety slexk ho .e ordeni
to han dte evond Orge lhatod

before he ne x 8heduet euo0 lorth

reul COS,
And re ovder nuenloy o fed intv h: itotifte
Qnd ye do(eç Ihe heel
mana y ement
monitoving46
Aah-e

h at
Yep)ersnen!
 HiNUOOEtion: Aarger uant tes are orderpd les:
trade ofe IS fh qt hotina
The
seaueniy
Cost& ane lynauy higher due to in crease d
Solety 84o Periodic vepA enshment may Aeqdtc
Sockouts 0 demand hexpectedly 3p Kes loithin
4 he reiew
peviod1 a9 the pot cy A0CIS lhe

Jiexibili ty to re spond (tnmed ratety To mitigae tii,

Sofety Slock J-euels are oflen 8et h9he Ae adtng io
Jn (re ased COmg rn g CostON iKe
Yeplenishm ent Perio dic Podire S qreleSs Yeisn

On
trackng aystern8. Regui ardy
S chedude d
orderg Qnd Yeviecos Can be marGGe

Comanies oith Aihided echnclcqieal escwe. The

Choi'ce betw een COntnucos and

-nt depends On-fac tor S ike

ead tmes, an d cost Consideratcns
Pu ctuCtng demand Cov)h ch Cie
 Odne r

and

\eqUnes SOPhisticat,

and may lead to hiqher

Pelrodrc replenishment IS ldea

Cwrth stab e predict ctble deman d

-or) dc aying costs Companies
rors yedcing Order Hveauenay an d reIQte d
sis The sale
inueby Cout need to hiqher to
Gncevtaintes dunng the revieo penod,
nonaqement Offsets hs cos
CCrtinuCuS eRuenishment
COnsis-lent ead times,
Can 8cho tolod
CorthCntid Chce

Safetq
 dstarndh9 (onnu 0US ond Penbdc
ems
ment 8yg1
ithishmen! Suskms Rep.enish
a deQuat e glock

meet (Ustomer demand Re Jeni

Syetens sperty co hen and how nuch
entey shau d be Or dev ed to minim2 e
excess (nuentGry
andimpro ve
CAnd we olve Cdy know that we
Corinuour ond pericdic Yepdeh ish ment
haue dis cu Ssed Each syslem
has distnc4
effecs On Sodety Slo Ck
reauirement g, Or de
trequeny
af ey
Gnd

sl6c
('nuentory n anaqem ent e
8erves
ticjenty
Oqainst uncertaintie s in
buffer
demand cor)
to pYcteCt

Soppy ie

rr arog e (otimoUS
and
yeriodiC rerlenis hmen t
galety stoci vavis B19nifccniy.
(ortirucus Yepsenishment qeneralty releres less
jnueptoy leuet as montd
Oldes
 aueston

\mmiedinnialzryn9 op on Yeat hn9 lhe reovde,

i v o u 5

(onlnuo05 based
s eP
s ors

rmoniloring, (oropon es (an adi

OY ders
denand dor.,
Spikes me xpe |e dly, lhe g49tern oil
\mme diate ordery re ducing he need to
eyceSS Sa lety glock By
lock m1nmlzing
Jevels, (ontinuao s ebenishm ent redu (e 9
30 fety
the
(ost woi th soving inuerttory. Thís L5
benehciot or high. deman d (on lat mouing item 8
(h cd need frequent Yesbcking Since (ruento g
only yeuleo ed gl ge4 interuas , a larger 8afety
lo acOUnt lor de mCn d ariat ons
Companies must Reep enogh
,el oe eh Yevieos
for hi9h- demnand

(or) fr:| -ineertor moura9 il ems nee d freque

a J arqer a Pety soCK in

dem an d uCius
 aueston Peplenshmerg mpr ovin9

botirvouS repeenishent prounes a hgh aus

of Charge in demand jensUrin g tha

hesporsivenesg
in vernbry is aiiabse ohen needed. This apnr cor
helps maint ain high sevuice Aevels and custo n

(otinuouS Yeprenishment Yeies heavily On reos tre

dab and fechno fogu Comoanies of ten Use
inventoy
Quomated gysiems ) Such 0s inventoy managernen:
SGfto ore, bar Code SConners, (or)Pf IO CoY) trar

Inventong management Cor) RfID,

Thuetoy |nvent ory leues This echnoi og y
dependance Can TmpYove oicency bot may
yeauiYe an iniia inveslment In TT 3ysterns Snce
Order
eY e de mand.
MinmizeS the
dviu-en,continuooS Yepee nishment
ikelihood of cueYslocking, Yedung
he (osis gs sociCrte d olhe evesS

YeQures prerse demand bvecortng

to auoid freouent slor acdiustents . Periodic
YepeniShmenl thuoes fooer yeviews and
 nahageneny
Thi
lusnegse sCo)

t Yeaulres less
time

nlons, oviotie Yrntenshment

Shipment s and Orde

Gnd en hanting OPer af

|"Cned er lenshment miqht eperlence

(o sts hul he xed
hghe hot ding
Yevieo Schedote
Plan and a o ale esras appY 0ach
Setohee for oducts pre di'ct abje
eman
otems as basances Co sts
with Stodey

techo09y (T) In inueniory manogeme4

(-TT) has
 hon S beloean YeUi ewS Compan ies

enough ih ventoy to Cover POBentiol

Untt the ne xt 8cheded
yevielo per \ai.
he Jargor Salety eto Ck helps preuen t
pavti Culavy
3ochouls
reptenshment
Suitahte for iEms
wrh BBoble Cor) pre d ictab e demand. Highes
ltoci« Jevels mQ an in (reased ho dh g CSt.
cohichiag 0mpact tnventoy
This t Yade-of, IS nece gs ay
Canying Costs
to aOk StoC kout s io
he absen ce DF Contin uoUs monitorng. Order freaueney
often {huentoy orders are
Psaced.
Contin uous and peodle epRith ment
Pokc' es Aea d to d ctferent ordevihg pattetng

Ovders are pl a ced tohenever StoCle eachoc

the re oYdev point J yesu ttin9 in frequ eh 1 , Shte
Oyders This |S Suitabs e Por high- demCnd itemt
Cor) prodocts lor th Quick oOwe lomouer, as
1t ensor es a steady Sopply The incveast vecu hy
OvdevS Con YCI'se
trarsportaton ad o deving
C6s4c.ThS may be botcan cod b 4 tedocid
 a u t o m

Carefuy
bot t eQuires
hoidng
to
YepleniShment
(osts
Quord en ce ssive Spendrg .oith co nh
)or ders are resPonsi to actuai

ohich Companis to aVOrd CUersto

demcnd and min'n.
dung Periods of olo
hgh demand Ovders
Qre
Ovder frquencies doring
at fye d intead S, feain,
COns oidted ahd place d
order. This redoces the
bot 6f ien dargeY
lolecoeY
Ovder ng and transrorta th'on
CoSts assoCi'le d

Grder | tnaking perto d fe rerenrsh

w1h teauent
timing o perio drc Veue
-ent (ost- ert e ct. The
Can be et acorin q lo product tyej demand Pat tern,

Cov) (omray re sUvces, aliooing for fiexibiitty in

man aging ovderia freaueny. Due to i xed reule
PeriodS,
) / de mand qdd enty increasad es t bef ore th
nryl gcheduedd Ovd ey To (onoy this

l avgey Safety loc of ten inainqinea

to higher hoidmg
eflcierty
G int atomated ond da to- dven yte ms. Bu

(omparies can achiee highey

f socN trackng, improve dem an fore as ting

OPEtmize ovdey Oy des and ye doCo (sts

oith inentoy The (in e gYat1on

enhances deciston- making

and oVeraJ! 8oppy chon Pertorance. TT euSterme

pi ay a mwtface d rofe in moYdevn Invertoy mano5
Var ouS areas 90ch
-enty( OUevng
eal-t'me tyacKin4, and automate,
('nuenby Controt
Yeplenshment Below Qre the coYe

manageren IT Systems
(ontyibutes to (nuentoy
enabe- yeot time nuenty trackin 9 aJLOorn 9 Com pone
Inso.
mouemest S ,and Xoahons
to monitor 8toclk level s

Q cueaY CUwent Qyailable

Ths pYOVI des
COarehose , St oyes and diStibo on
(nuentoy ac To Ss
coiers. Yeal I ime monitoving , (oranies Can
8et Quto matic alert s
ohen Iuentony reocher
a pre deAin Ye OreY Poini This ensUeS tho
gtockoots ore pre vented by pyomtin g tirne,
d hel Ping moimain consistent PYococt auaisch.
Peas- time tac khing obo ipoves trorsparency
managers a Cornpvehensie ueO Df huentony acyYoor
Socations This Visibily is SRrlaly ugefus for nulti-J0cott.
busines sa ,where stock levels must be bolon Cet a CYoss
dif Ferent 3toyes (or) Ore hooss T6T Sysi eg o se hisfoYicol

3ale dota 8eoso nol tYends and preclichive anoyticc

to pare ca_t futere deman d. dUoned (hueniony
manogenen t 8cofioare in cov POYates
mochine earning
and arifciaL inteuigencecaI to
enhance breosting
QUYacy )eUen tor comia demand pati
erng.cYC
demar fovecosting re doces he he ed for ecess

Safety gtocK minimizin9 hotdin g costs Cohile en sori ng

prduc fS are Qvoioble to me et CsbmeY demand LTrfk
Prease -fovercsS, inuerto y eUols can be maintained

he ikeihoo of OUerstOcking cor)

redo CIn9
oeroccking .Thís improues Cash fO and

gh-Urnove Hems.
Bioc k tYoCking Cnd
 butormttn9 dtoka Colleetion hese lechnolo çios

Fpraves GccUracy by vedvcing manuot dal o hing

and aO oing QuiCle Stock Updat es oh or

are Canned donn coavehouse OPerhicn

poducis
d RfID 8yetems make if easier to Crrt1
arods Qn
B Poy
Schedued bS s (or)
Couts, eith er eon
ihuentoy
coonting partiu/ar,aMoS bulk Sonning
Gycse PEIDin

making lock ta l«ing sler and more elhcient

1Hem s Ore sanned Ohen Yecieved, trarngve

daia base is actomatroly Cdale

(ov) Sod the huentony
an acCUvat e
pvouidng
System s facuitat e &eomiet,
at any given time.
d ala sharing coith supplitr
(ommonication and
COuaborative plOnnio With integroted
ehobling efficiat

Syslems, 80ppilers Can directy access Iruen toY

the to monage e prenis hmert

pYo cess es and 80Myohain i's 8treomtin ed Many TTy

ave designed to avtomorhally generate purckare cre
base d on Pred efin ed Inentony Jevels (o
for nonual
\educing the need
 ba
o rds,

AlensureoaledtimelyOrdenin g
Stock
an hedo redUce
veplenishme
Jeai
mou

enabie Companies to track sUPPlieY Perfomnnce h

Such as dead timeS, delieny accuracy andt
rodocL
Quai y a din 9ie BupPy|er manageme)!
9 l'n straie

Selection Inventoy m ana9e ment Sof lcoa re

autom qte replenis hment pro cesses by PaCing ord ers

based on invertoy beshott (ov) fovca sted deman
Yeducing hum an erors and d minis(ratiue
ooark Joad.TT Sysems o ten ibtegrate orth
en lerpv |'Se YesouYce Plannng and LOoreho0se manoge
-ment B4slems Cveatin g a Cnifed inuentony
man9e Ment enuvonmen that
gtreamlines Ortey
roceSS in9, glock Qdj Ustmes and Yerorting
Autom Qtion
-Signifcanty re doces manu at tinteruention
which nof
Crly improuer acrura cy bt olso Qreos emtyee;

epetiiue Control dute, II

'nventuvy Yport
 Oards, Prourding insiQht5 inc stc evels
and odct nse
Yates inenty aging
This dala alloos managers to ma

decisons Qbout inuentoy Strasges

aa- dvien

IT Sylems Can Perform AonalySiS CAOSfying

baced On a e
fems in to dilrerent categores
Pnoitie ;
helping COmpantes
an d tYnouer Vat e,
(os high- dern ond tems AdUGnced GnGiytS
en abies Companres to euatuoe key Perfevm Gnce
management 3UCh as :
indícators for tnuetony YateTnis
and gtotkout
Yate ead time

rdenhy QOS foy improement an drefne

businesses
etratege s Te
their 'nuentoy
inuentoy m anaemen t brin gs Seuera Strot9c
benehts. Bu auto m By otom at ing pxoceS S es an d
daa
caPtoYe IT reduces humon eorS ,IPYang inven
-toy Grcra y TT Systens help rpduce OUerslockirc
hoscding ccss and manuof jabcy costs by optizing
invenong leveS and oOomatn q coomtl o us l t

Yeas-t me upcdales an d efficienl skc i

'hventoy
manag ement Comoios CCin fulli COstom eY Cyders
 eticienlyinvenloAea ydmanagement
ingto higher sartisfrten
8uroYt
ala sizes, tom
Smol!
Sak ng Yelalers to 9lo bad (ooat
ana predicti v
Hes and ata- driuen orecos
ting, TT
Comanies to PA an
invenicvs more efectiuely
enables
Aomakel chan ges and demand fI adapii
luctuatio rs But inste:
Can be can be
costiy.h S incecdes he cost

SOtfware ,hod to aye traininq en d mainienance

AS inventoy dal a is Sensitive Cuelsecuity eSUreS
must to aqainst data breaches Ond
protect
OnsUre (Onplian ce coithe egU lQhens
U) Dieey ent ModeS f hs Ponatton
Chain:
Transrort chion
chain
manogement ConDectsS i s
hunufates distrietos Qnd (ustomeYS 6y noig
 ieeton
(ontuHon (on
d tine

of -tronspoiaer
aduantages and mtatcns, orei

Setoctin g the aproprat e mode depend s on factcr.

dislance cost spee d and tYPe cgcca:

Sorh aS
Ivonspor dd tion has gpeCiA c ottrbole;
Pach fmgde of
foy dileent fu pes 6f avgos
that make (t
tines Iterm S, bulk gods, Qn d
pervshabse
(oct Yequrernent S Road
wal as
fragile roduct s
900 ds Via
ransportahion ihu AUS mouin9
one of
It (S
/(o) vehdes OUer Yoads
Vans
odely Using modes)
and
the mos t fee xible
di'stCnce shipms.
or short -to-medium
espeicliy d Ooy , mak (n g
deliuey door - to
Trucles (an
nile dellueny a emole occhio
them ide al Ror Aast
honde UaviGo s tpes of
n
Pogd ty Cns por
peNshable ilems, budk
inculig
is efficient foy
r09protucts Road ronspovicrtion
 times
Shorl YOules, Quick deivey
orng
heed lo between tronspovlati
rorslers
Poad t Yans Povlati

(valtc1 Voad conhoues an d oe alhey

Cost-efechve Compare d
Yoad can be Ae sS
due to fuet and abor
raid o) ea transrort
trarns o move Goods,
Coss Rai ron s p oYl atton uses
othin Continent It Ts
often for long dislantes

Commory USe d for bodlk cargo Cnd hegy

Uhot qre not time -8ensibu Ras tronspovla
leoer (osLs
-kan camy davge quanhtes
transport haking IE dea for
compaved to Yo

(Herms Aike CCol, ninera s, and Chem1 ca/s.

bull
Trains have CCxbon footprint per tonmie
maninG rai transot Q more sOstQinghto
{han tctS,
necsS of! en Yon Gntixed schedotes ,
Ortcn Rail
ere redict ohle trans t t'me for fon g
|VOUdng
Shiren!S
 es on Cortnu aion Cohich may increase transit
he relios on the
Ral transpor
6nfyostructure) which may n reach fosremein

areas Air trars porlaton

over dong distan ces in o Shoyt pericdJ:

ronsPOYt goo ds
{he fostest mode of transportat on and 1s fyor coly ose d

tin e- 8ensife (or) pevVtshable 9004s Ar

for high- Volue
Ofers the fostest tronsit time, nakirg
{ronspor tati on
deliers yinternctionas Shipment5 , Gre
11 ideal for urgent
and phara mace oticad SAr
Perishables ike #sser S
Citics
trans poriaBzan Con nect s
marlxet S Qur
reach internab ona
bUsineses to
reduces
f air fvanspcrt
(onto-ed enuironment

-lhe nisk of domage making rt RUitabie for hGh

Qnd oque oo ds Ar transpert ath Cn is the
most expensive mode due to tue, honiing Grnd

Cor) bwi y ite s Aire Gnes hae stnct wergt ard

jintcrs vestrrttng he types c o a
(ar be tranrcried Seo trons poriot
 knoun , (ommonty
ship aross 0ceans
On carq
prirnag
and 1 lhe
Intevnationa lvqde
Ouey Aong
distantes.
Ivonspovloa hng 90ods
eohomi(as option fr Shippirng
{ranspovt Is the host
lovge Uolumes of goots, makin9
cherntrals, mah iney and
m dittes dike o'!, massive amournl of
Consoner 9ds 8hip S can Camy

Cavgo incAuding ouesiz ed and heauy machin eny

uehicJe S and rao ma leicls. 8ea transrortah on pay
Cicic Yose tn lobaf lyadey (onnecting ports
conerho.
and enahling CYOSS
across the coor d
moverment
Oceon hiprin9,much saom
of goods
-lhan Cir trans por tation, Ollen taking oeelrS for
InternGhioros ghirments 3hippin g reQuires Qctess to
Porls and lhe dickhnte Prorm porl s t finat lestno s
Gns may Yecuire adldeticrnal trarsporlat On
olas dlive ny time Pipeine
incveosiny
9poria 2c| node for
tvansrorlion
ran.porting iaurd g9p
Gnd othov r. moodit (e, uch as
fluid
Ci4naturat
ctrg tre
 tenS Por' (ontiruotion heed for manuad nieUenhion

Continu ous frans ortah on Over fong diskan Ce.

Yelotiuels Ine xpensive to
Constucted, pipeiines aye e Rectiue
making them (os!
operate and maintarn,
Pipeline t ans fort's Sae
&Cade flutd trangort
foy lorge. Gs Tt
road (o) rart /
naterials thon
for hozard ous idents.
Budin g
Ol Sprls (o) Qc
re doces {he Yisk inuestment tn
Siqncant front
PipetineS recuireS a timne- Consoming
nd
Can be (ostly
Intastucture Ohich products,makina
fuicl Cor) gas
are linttf d lo
Pirelines
(argo. 8eo an d vaii
onsuitable for qenra
them
Por cost - ePlec hiue
oflen preloned
t vanspoYt are
is choseh forUvgert,
Shipments cohúe air transport
bul k it higher (ostfoy
shipments despite
fa stest but (ctIies!
ghip Pin9 air 1'S the
transrorto on bui nore
oheres
dia'r
dom estc trans port, ro ad Qn
Grffordabl e fov
peve ewed The type of goodS bri
are generC ALy
poved aflccis t he c hoir e
{ rans
pershablo! o thOhle Pieelines aYe Ortmo
(om Gnis CCncerned loth SUohclar
fisih
Grt or var! Cor) ea trans ro
e,ndhigh- hq
ilectir
fer
also
roity
der S
a non
entoy Sfty
ln
man d onde boseddilereYLs
ciimpa
s poticy Sach
are iCdi Qnd
used
to manen t 1nuenty
hmnt
ees SewI(e innpyovc nd costs heian9
e haitaing
Odequle
flectiue slock. saty nteroy
ien
st
enna)d ieet lo Feptenshment
cohile
tomgemem Lmtoly
ReptenShnent Peviodic And
Poticies
n feetrn on heir
 -rontinahon
triggee d based On (onsjexi
KeOrdey point Is cotcUN ed by
fuath ons
icies sn donng
.oZ replenishmernt Qdqpt S
and dem and euc
l0ell to Unprediclahe

d a S Orders ave piQced coh eneer

YeQOirS
monttoYin 9
YeOrdey point Real- time inuentoy
opert'onat
Systemnsancd mQy increased
elli'Cient and
CortinuOUS replenshment Cah b e
st S
Citcal ifemS doe lo
Cor) non
(OSLly foy dOuo- demand GreOyder ro in tS
place ment s. ta,
freauent Orer and ead- m e da
historicaf demand
veQui ro Precise
Drodode
chaienging to oblQ(n f r nelo
oh'c h may be
Aneraac
(ov) d onng guppy Chain eelenishmet
Poaiy a So kncon a eye d - rer Od (oy)
venienishment
YeUieOS invenio y at Pix ed inleral and

as neede d -ThiS melhod Is SO1 tet foy

PIaces orde rS
more
Stable demand cor)non-Critica
items Loith
do not Yeauire Corslant montov1ng
hot
are
fixe (nerUQls Inuenty
rah e y
{han Contnucusiy