Figure 7.9 shows a demand series for a high-volume grocery product with a comparatively stable demand. The vertical lines mark the end of each trading week, which is Sunday midnight.

Suggest key features of this trading pattern. The retailer now wishes to implement two stock-replenishment ‘waves’ each day from the supplier: one in the morning (7 per cent of volume) and the other in the afternoon (25 per cent of volume). Previously, only one replenishment delivery was made per day. What are the potential benefits to the retailer, and what are the likely risks to the supplier?