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It often batches or accumulates demands before issuing an order.
Sometimes the supplier cannot handle frequent order processing because of the substantial time and cost involved so instead of ordering frequently, companies may order weekly or fortnightly.
This leads to two forms of order batching; periodic and pushing ordering.
A supply chain management is the broad concept which includes the management of the entire supply chain from the supplier of raw materials through the manufacturer, wholesaler, and retailer to the end consumer.
However, certain dynamics exist among firms in the supply chain thereby causing inaccuracies and volatility of orders from the retailer to the primary suppliers and that these cause for operations, say, readjustments further upstream in the supply chain.