Which of the following statements 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

Collaborative planning, forecasting, and replenishment (CPFR) aims to improve operational efficiency and manage inventory by facilitating communication and coordination among supply chain partners. It involves the sharing of data, including inventory and sales data, to enable better forecasting and planning of inventory replenishment needs, which can ultimately lead to cost savings and improved performance across the supply chain. Option B and C are incorrect, as CPFR requires the sharing of data among supply chain members. Option D is also incorrect, as CPFR can actually help reduce merchandising and logistics costs through better coordination and planning.

Which of the Following Statements Is True of Collaborative Planning