Which of the Following Is Incorrect About Collaborative Planning,Forecasting and Replenishment

question 29

Multiple Choice

Which of the following is incorrect about Collaborative Planning,Forecasting and Replenishment (CPFR) ?

• A)The basic idea behind CPFR is to share forecasting information with the suppliers and customers in the supply chain.
• B)CPFR is best applied to a few customers representing the bulk of demand.
• C)Wal-Mart uses CPFR to coordinate its supply chain.
• D)CPFR creates visibility in the supply chain minimizing the occurrence of the bullwhip in supply chains.
• E)CPFR requires advanced forecasting tools such as Box-Jenkins to improve the forecasting accuracy.

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Definitions:

Joint Probability

The likelihood of two or more events occurring at the same time in a probabilistic framework.

Independent

In statistics, refers to variables or events that are not affected by other variables or events within the scope of the analysis.

Mutually Exclusive

Describes events that cannot occur at the same time, meaning the occurrence of one event excludes the occurrence of another.

Conditional Probability

The probability of an event occurring given that another event has already occurred, often calculated to take into account prior knowledge.