Final answer:
Oxytocin is produced by neuroendocrine cells in the hypothalamus and transported to the posterior pituitary for storage and later release into the bloodstream.
Step-by-step explanation:
The cells responsible for producing oxytocin are the neuroendocrine cells of the hypothalamus, specifically in the paraventricular nuclei. Oxytocin is then transported along axons to the posterior pituitary gland, where it is stored and later released into the bloodstream.
The posterior pituitary does not produce the hormone but plays a crucial role in storing and releasing it in response to signals. Oxytocin is well-known for its role in inducing uterine contractions during childbirth and stimulating milk secretion in breastfeeding females, demonstrating how the brain and endocrine system coordinate complex physiological functions.