A large retailer and one of its suppliers establish a process to combine intelligence from both organizations in order to improve product availability while reducing inventory, transportation, and logistics costs. This process is known as which of the following?

A large retailer and one of its suppliers establish a process to combine intelligence from both organizations in order to improve product availability while reducing inventory, transportation, and logistics costs. This process is known as which of the following?
A . Vendor-managed inventory
B . Collaborative planning, forecasting and replenishment
C . Sales and operations planning
D . Enterprise resource planning

View Answer

Answer: B

Explanation:

The process described is Collaborative Planning, Forecasting and Replenishment (CPFR), which involves both the retailer and supplier working together to improve product availability and reduce costs associated with inventory, transportation, and logistics.

Reference: CPFR is a widely adopted strategy in supply chain management to enhance collaboration and optimize the supply chain.