Which statement is true of collaborative planning, forecasting, and replenishment (CPFR)?
A)It aims to improve operational efficiency and manage inventory.
B)It ensures that the accessibility of data collected with a point-of-sale system is not shared among the supply chain members.
C)It ensures that inventory and sales data are not shared across the supply chain.
D)It increases merchandising and logistics costs for all supply chain members.

Question

Quizplus · Accepted Answer

CPFR is a business practice that aims to enhance supply chain integration by supporting and assisting joint practices. It focuses on improving operational efficiency through better planning and forecasting, and effective inventory management. This collaboration involves sharing relevant data among supply chain members to ensure a more accurate and efficient supply chain operation, contrary to options B and C which suggest data is not shared. Option D is incorrect as CPFR aims to reduce costs, not increase them.

Which Statement Is True of Collaborative Planning, Forecasting, and Replenishment