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Question 378 - CSCP discussion

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Which of the following processes enables joint planning of key supply chain activities?

A.
Vendor-managed inventory (VMI)
Answers
A.
Vendor-managed inventory (VMI)
B.
Supply chain event management (SCEM)
Answers
B.
Supply chain event management (SCEM)
C.
Distribution requirements planning (DRP)
Answers
C.
Distribution requirements planning (DRP)
D.
Collaborative planning forecasting, and replenishment (CPFR)
Answers
D.
Collaborative planning forecasting, and replenishment (CPFR)
Suggested answer: D

Explanation:

CPFR (Collaborative Planning, Forecasting, and Replenishment) is a business practice that combines the intelligence of multiple trading partners in the planning and fulfillment of customer demand. It involves joint planning and continuous updating of inventory and order forecasts, aiming to improve supply chain efficiency by synchronizing supply and demand. This process includes collaboration in various activities such as demand forecasting, production and replenishment planning, and order fulfillment. It ensures that all partners in the supply chain are working with the same data, leading to better alignment and more efficient operations.

Reference:

APICS Dictionary

'Supply Chain Management: Strategy, Planning, and Operation' by Sunil Chopra and Peter Meindl

asked 16/09/2024
Jennifer Lear
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