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Question 49 - CSCP discussion

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Which of the following strategies is used primarily for demand planning?

A.
Build-to-order scheduling
Answers
A.
Build-to-order scheduling
B.
Push-pull replenishment
Answers
B.
Push-pull replenishment
C.
Collaborative planning, forecasting, and replenishment
Answers
C.
Collaborative planning, forecasting, and replenishment
D.
Vendor-managed inventory
Answers
D.
Vendor-managed inventory
Suggested answer: C

Explanation:

Collaborative Planning, Forecasting, and Replenishment (CPFR) is a strategy used primarily for demand planning by improving coordination and collaboration between supply chain partners. Here's how it works:

Collaboration: CPFR involves sharing information and plans between retailers, distributors, and manufacturers to create a unified forecast and replenishment plan.

Joint Forecasting: Partners collaboratively develop demand forecasts based on shared data, reducing discrepancies and improving accuracy.

Replenishment Planning: Using the agreed-upon forecasts, the partners jointly plan inventory replenishment to ensure optimal stock levels and reduce stockouts or excess inventory.

Benefits: CPFR leads to improved demand visibility, better inventory management, and enhanced supply chain efficiency.

This approach fosters a cooperative relationship among supply chain partners, aligning their efforts towards meeting customer demand more effectively.

Barratt, M., & Oliveira, A. (2001). 'Exploring the Experiences of Collaborative Planning Initiatives.' International Journal of Physical Distribution & Logistics Management.

Seifert, D. (2003). Collaborative Planning, Forecasting, and Replenishment: How to Create a Supply Chain Advantage. AMACOM.

asked 16/09/2024
Jeffrey Tiffany
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