Joint forecasting between supply chain partners is known as:
A) Vendor managed inventory
B) Collaborative planning, forecasting, and replenishment
C) Early supplier involvement
D) Sales and operations planning
E) None of the above

Question

Quizplus · Accepted Answer

Collaborative planning, forecasting, and replenishment (CPFR) is the technique used by supply chain partners to jointly forecast demand and plan inventory levels, production schedules, and replenishment activities. It involves sharing information, such as historical sales data and future promotional plans, to improve the accuracy of demand forecasts and reduce the bullwhip effect. VMI and early supplier involvement are related concepts but do not necessarily involve joint forecasting, while sales and operations planning is an internal process for aligning business plans with operational plans.

Joint Forecasting Between Supply Chain Partners Is Known As