Week8 DQ2

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Collaborative Planning , Forecasting and Replenishment (CPFR

CPFR refers to an initiative facilitating reengineering of relationships that exists between trading partners , meaning that it is a process that facilitate transactions . The initiative is based on a set of standards that are recognized by the industry as nonproprietary . CPFR provides templates that are applied in supply chain partner collaboration activities . At planning stage , the relationship is updated and established . replenishment and sales forecasting stages occur in a more frequent manner (Lisa , 2002 ,

.45

p Implementation of CPFR process involves considerable stages . It starts with comparing of organizational data and plans with another . Such plans in comparison may be a new version against a previous plan or comparison of a plan with actual results . For smooth implementation of this model accuracy should be maintained in the forecasting stage . For this to happen , suppliers and customers should be allowed to fully participate in the forecasting process (Boone , 2002 ,

.33 . If there is any discrepancy between suppliers and customers , both of them can sit negotiate on the discrepancy and rectify it . For example , a supplier can decide to build inventory when advancing a promotional and hence carry less safety stock at various times . On the hand , a customer can decide to reduce the impact of supply problems by altering the product mix . The process in long run creates win-win scenario by tying the seller and the buyer together in their compatible goals . As they compete as one...