APICS Certified in Logistics, Transportation and Distribution (CLTD) — Question 58

A company is considering implementing collaborative planning, forecasting, and replenishment (CPFR). Which of the following statements best reflects one of the objectives of CPFR?

Answer options

• A. It represents a sequence of business processes between consumers and retailers.
• B. It replaces traditional forecasting methods with a shared single forecast among trading partners.
• C. It represents a sequence of business processes within the manufacturing environment.
• D. It replaces traditional inventory management procedures with a vendor-managed (VMI) system.

Correct answer: A

Explanation

The correct answer is A because CPFR aims to enhance collaboration between consumers and retailers through a structured process. Options B, C, and D do not accurately capture the essence of CPFR, as they focus on forecasting, manufacturing processes, and inventory management, respectively, rather than the collaborative aspect between consumers and retailers.