Question

the real value of cpfr comes from the sharing of forecasts among firms, rather than firms relying on sophisticated algorithms and forecasting models to estimate demand. true / false

Answer 1

False. The real value of CPFR comes from the sharing of forecasts among firms, as well as relying on algorithms and forecasting models to estimate demand.

Step-by-step explanation:

The statement is false. The Collaborative Planning, Forecasting, and Replenishment (CPFR) process in supply chain management involves not only the sharing of forecasts among firms but also the use of sophisticated algorithms and forecasting models to estimate demand.

CPFR is a collaborative approach that aims to synchronize the activities of suppliers and retailers to meet customer demand efficiently. By sharing forecasts, firms can align their production and inventory levels to minimize stockouts and overstock situations.

While sharing forecasts is an important aspect of CPFR, it is complemented by the use of algorithms and forecasting models to ensure accurate demand estimation and effective supply chain planning.