Certified Supply Chain Professional (CSCP) Practice Exam

Which activity is part of the CPFR model's strategy and planning phase?

1. Evaluating market demand forecasts

2. Developing a joint business plan

3. Managing supplier relationships

4. Conducting employee training

The correct answer is: Developing a joint business plan

The activity that is part of the Collaborative Planning, Forecasting, and Replenishment (CPFR) model's strategy and planning phase involves developing a joint business plan. This phase is critical as it establishes the foundational agreement between trading partners to align their objectives and collaboratively set goals that drive the entire CPFR process. Creating a joint business plan ensures that both parties share a common vision and agree on the strategies for collaboration, helping to optimize forecasting and inventory management efforts. In contrast, evaluating market demand forecasts would be more associated with the forecasting phase itself rather than strategic planning. Managing supplier relationships typically falls under operational execution and supplier management, while conducting employee training is generally related to capacity building and competency development, which are important but not specific to the strategy and planning stage of the CPFR model. Thus, the development of a joint business plan is an essential step in ensuring both parties are aligned from the outset on their collaborative objectives.