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manufacturing plant. This is appropriate when the same materials,parts, or subassemblies are used in multiple products. Rather than keepingseparate buffers of the common items for each product being manufactured,keeping a central buffer and replenishing common items asthey are consumed leads to higher reliability with less total inventory.Furthermore, strategically placed replenishment buffers enable amanufacturer to reduce end-to-end production schedules. DBR softwarewith replenishment capabilities is required, however, because ERP systemsdrive requirements all the way through the BOM, regardless ofstock on hand or replenishment buffers.If a manufacturer’s business is predominantly design-to-order ormake-to-order, using Replenishment to distribute its primary productsis not as appropriate. However, even in those types of manufacturing,spare parts are usually make-to-stock, and Replenishment is quite applicableto them. Because spare-parts inventory for a large enterprise oftenrepresents an investment of hundreds of millions of dollars, a significantreduction in that inventory frees capital for reinvestment in other areas.
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