Which of the following is incorrect about Collaborative Planning,Forecasting and Replenishment (CPFR)?
A)The basic idea behind CPFR is to share forecasting information with the suppliers and customers in the supply chain.
B)CPFR is best applied to a few customers representing the bulk of demand.
C)Wal-Mart uses CPFR to coordinate its supply chain.
D)CPFR creates visibility in the supply chain minimizing the occurrence of the bullwhip in supply chains.
E)CPFR requires advanced forecasting tools such as Box-Jenkins to improve the forecasting accuracy.

Question

Quizplus · Accepted Answer

While CPFR involves sharing of forecasting information with suppliers and customers, is best applied to a few customers, is used by Wal-Mart, and creates visibility in the supply chain, it does not necessarily require advanced forecasting tools such as Box-Jenkins. While such tools may be helpful in improving forecasting accuracy, they are not a requirement for implementing CPFR.

Which of the Following Is Incorrect About Collaborative Planning,Forecasting and Replenishment