Council of Supply Chain Management Professionals (CSCMP) Practice Exam 2026 - Free CSCMP Practice Questions and Study Guide

The primary function of the Collaborative Planning, Forecasting, and Replenishment (CPFR) model centers around creating a singular forecast of customer demand and developing a structured plan to address that demand. CPFR emphasizes collaboration between partners in the supply chain—such as manufacturers, suppliers, and retailers—to share information and insights that inform demand forecasts. This collaboration leads to a more accurate and cohesive understanding of future consumer requirements, enabling companies to align their inventory levels, production schedules, and distribution plans effectively.

By integrating the insights from various stakeholders, CPFR enhances the accuracy of demand forecasting, which is crucial in minimizing stockouts and excess inventory while optimizing the overall supply chain efficiency. This model is fundamentally aimed at synchronizing efforts across the supply chain, ultimately leading to better service levels and reduced operational costs. Thus, the focus on demand forecasting within CPFR can significantly improve the responsiveness and resilience of supply chain operations.