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Question 161 - CSCP discussion

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Which of the following factors is most likely to slow the adoption of collaborative planning, forecasting, and replenishment (CPFR)?

A.
The reluctance to share detailed information
Answers
A.
The reluctance to share detailed information
B.
The cost of electronic data interchange services
Answers
B.
The cost of electronic data interchange services
C.
The risk that changed processes will disrupt operations
Answers
C.
The risk that changed processes will disrupt operations
D.
The risk of security breaches
Answers
D.
The risk of security breaches
Suggested answer: A

Explanation:

Collaborative Planning, Forecasting, and Replenishment (CPFR): CPFR is a business practice that combines the intelligence of multiple trading partners in the planning and fulfillment of customer demand.

Information Sharing: For CPFR to be effective, all partners must share detailed information, including sales data, forecasts, and replenishment plans.

Reluctance to Share: Many companies are hesitant to share detailed information due to concerns about competitive advantage, trust, and data security. This reluctance is a significant barrier to the adoption of CPFR.

Other Factors: While the cost of electronic data interchange (EDI) services, the risk of operational disruptions, and security breaches are concerns, the primary factor slowing CPFR adoption is the reluctance to share detailed information, which is foundational to CPFR's collaborative nature.

Barratt, M., & Oliveira, A. (2001). Exploring the Experiences of Collaborative Planning Initiatives. International Journal of Physical Distribution & Logistics Management, 31(4), 266-289.

Holweg, M., Disney, S., Holmstrm, J., & Smros, J. (2005). Supply Chain Collaboration: Making Sense of the Strategy Continuum. European Management Journal, 23(2), 170-181.

asked 16/09/2024
Simon John Mather
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