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INTRODUCTION In today's market, organizations must be able to meet client's need, what they need and when they want it. Customer support and on-time delivery are two important aspects in today's environment. Item life cycles have shortened and clients are demanding immediate shipping. A firm might have a fantastic product, but if it is not delivered to the client when they want it, the client will move to the competition and the item will fail. Organizations need to recognize the significance of their supply chain and make sure that the correct solutions and tools are set up. The distribution chain is a system/network which includes inventory, distribution and transport functions and consists of raw material suppliers, producers, storage warehouses, distribution centers and retailers. The traditional methods of replenishment is push replenishment based on forecasts and long lead-times. The conventional methods cause the Bullwhip effect, which happens when variance increases in ordering patterns as you move higher up (upstream) in the supply chain. Problems with traditional methods of replenishment and forecasting errors include: • Long lead-times -- late deliveries, not able to meet customers expected delivery dates. • Insufficient inventories -- out of stock, short/insufficient shipments. • Excess inventory -- large inventories. • Incorrect product mix -- too much inventory of merchandise that don't sell and inadequate inventory of merchandise in demand. Managing a supply chain system based on a customer driven focus, requires the right inventory in the right place at the ideal time. An effective inventory replenishment method implemented in the supply chain is a key element to maintaining low inventory and higher customer.