Which One of the Following Statements Regarding Collaborative Planning, Forecasting

question 29

Multiple Choice

Which one of the following statements regarding collaborative planning, forecasting, and replenishment (CPFR) systems is best?

• A)In CPFR, each business develops a sales and operations plan and the mainframe system reconciles these plans to find a middle ground that all businesses work towards.
• B)CPFR is a set of business processes.
• C)CPFR has the Program Management Body of Knowledge (PMBOK©)as its basis.
• D)Studies have demonstrated that manual, paper-based CPFR systems are faster and more accurate than computer-based CPFR systems.

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Definitions:

Cross Price Elasticity

A measure of the responsiveness of the quantity demanded for one good to a change in the price of another good, indicating the degree of substitutability or complementarity between them.

Midpoint Method

The midpoint method is a technique used in economics to measure the elasticity of demand or supply, minimizing the bias in the response to price changes by using the average percentages of change in both quantity and price.

Income

Earnings acquired on a routine basis through work or investment profits.

Price Elastic

Describes a situation where the demand for a product changes significantly in response to a change in the product's price.