APICS Certified Supply Chain Professional (CSCP) — Question 357

After two firms have established an initial relationship to apply the principles of collaborative planning, forecasting, and replenishment (CPFR) for products, the next logical step is to:

Answer options

• A. share forecasts for the products with each other.
• B. obtain orders for the products and enter them into the master schedule.
• C. create joint business plans for the products.
• D. negotiate prices and profit expectations for the products.

Correct answer: C

Explanation

Creating joint business plans is essential as it aligns both firms' strategies and objectives moving forward. While sharing forecasts and obtaining orders are important, they are part of the execution process that follows the establishment of mutual goals. Negotiating prices and profit expectations is also significant but comes after the joint planning stage.