A retailer wants to partner with its suppliers to implement automatic replenishment of inventories and joint sales forecasts. Which of the following supply chain management technologies most likely would support the retailer's strategy?

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Quizplus · Accepted Answer

Collaborative planning, forecasting, and replenishment (CPFR) is a supply chain management technology that allows retailers and suppliers to work together to develop sales forecasts and automatic replenishment plans for inventories. CPFR enables improved collaboration between trading partners, which can enhance supply chain efficiency, reduce costs, and improve customer service levels. Advanced planning and scheduling (APS) may be used to optimize the use of resources like raw materials or production capacity, but it doesn't enable the same level of collaboration as CPFR. Supplier relationship management (SRM) applications are focused on managing supplier relationships, but don't necessarily support joint sales forecasting or automatic replenishment. RFID tags can improve inventory visibility, but don't support collaborative planning or forecasting.

A Retailer Wants to Partner with Its Suppliers to Implement