The three main types of inventory replenishment are:
Reorder point replenishment — This type of replenishment uses a predetermined reorder point based on past sales or forecasts. When the stock level reaches the reorder point, an order is placed with the supplier for additional stock
Demand replenishment — This replenishment method is based on current and future customer demand. With this method, you only order enough to fill the forecasted demand. It is still essential to have some safety stock
Periodic replenishment — This type of replenishment occurs when a certain amount of stock is ordered at predetermined intervals, such as weekly, monthly, or quarterly. This method works best for businesses that use seasonal demand cycles and need to adjust their stock levels accordingly