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

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The correct sequence of the five steps of Demand-Driven Replenishment is important for ensuring an efficient and effective inventory management process. The chosen sequence begins with "Analytics," which involves analyzing historical data and demand patterns to understand consumer behavior and forecast future needs. This foundational step is critical for making informed decisions in the subsequent steps.

Next is "buffer positioning," where strategic decisions are made about where to place inventory buffers within the supply chain. This prioritizes stock placement in a manner that optimally supports demand fulfillment while minimizing costs and lead times.

Following buffer positioning is "buffer sizing," which determines the appropriate amount of inventory to hold at each buffer location. This sizing needs to take into account variability in demand and supply, aiming to balance service levels with inventory holding costs.

The fourth step is "replenishment planning," where specific plans are created to restock inventory based on insights gathered from the previous steps. This includes deciding when and how much to replenish based on the data analytics and inventory buffers established earlier.

Finally, the sequence concludes with "replenishment execution," where the actual orders to replenish inventory are placed and logistics are organized, ensuring that the replenishment plans are put into action to meet customer demands efficiently.

This logical flow—a methodical sequence

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