What is the process by which a supplier is notified daily of actual sales or warehouse shipments and commits to replenish?

• A. Vendor-managed inventory
• B. Just-in-time
• C. Continuous replenishment
• D. Economic order quantity

Answer: (C)

Continuous replenishment is the process where demand information is continually shared with the supplier, typically on a daily basis, and the supplier commits to replenishment to maintain stock levels. The daily notification of actual sales or warehouse shipments gives the supplier near-real-time visibility of demand, enabling them to schedule replenishment promptly and keep inventory flowing without shortages. This approach contrasts with other methods: just-in-time emphasizes producing or delivering exactly when needed but isn’t defined by a daily demand-communication and replenishment commitment; an economic order quantity is simply a mathematical lot-size rule and doesn’t describe ongoing supplier coordination; vendor-managed inventory involves the supplier owning or managing inventory, but the specific daily demand notification and replenishment commitment described here are hallmark features of continuous replenishment.