The idea of CPFR is achieve fewer out-of-stock situations and resultant lost sales by increasing inventory levels in the supply chain.

Question

Quizplus · Accepted Answer

The idea of CPFR (Collaborative Planning, Forecasting, and Replenishment) is not to increase inventory levels in the supply chain, but rather to improve coordination and communication between trading partners to better align demand and supply, leading to improved forecasting accuracy and more efficient replenishment. The ultimate goal is to achieve a more streamlined and responsive supply chain, with fewer out-of-stock situations and improved customer service, without necessarily increasing inventory levels.

The Idea of CPFR Is Achieve Fewer Out-Of-Stock Situations and Resultant