Inventory replenishment strategy is an iterative process by which retail businesses determine what products to order, how much of each product to order, and when to place the order. It’s a balancing act: too little inventory and you lose customer satisfaction from backorders; too much inventory and you’re stuck with liquidation costs and stock on hand that takes up precious cash. The best inventory replenishment strategies ensure that you have the right amount of stock at the right time, so your customers can always get what they need and you can take advantage of sales opportunities when they come along. It’s a win-win!