Certified Supply Chain Professional (CSCP) Practice Exam

In the joint sales forecasting element of the CPFR model, who is responsible for conducting demand planning?

1. Retailer

2. Manufacturer

3. Supplier

4. Distributor

The correct answer is: Manufacturer

In the context of the Collaborative Planning, Forecasting, and Replenishment (CPFR) model, the responsibility for conducting demand planning typically lies with the manufacturer. This is because manufacturers are positioned to accurately analyze market trends, customer demand signals, and historical sales data to create reliable forecasts. They possess insights into production capabilities, inventory levels, and logistical considerations that are critical for effective planning. While retailers, suppliers, and distributors play significant roles in the sales forecasting process and contribute valuable information, it is the manufacturer’s responsibility to integrate this data into a coherent demand planning strategy. This central role enables the manufacturer to ensure that production aligns with actual market demand, helping to avoid issues such as stockouts or excessive inventory. The participation of retailers, suppliers, and distributors is crucial for a holistic view and to enhance the accuracy of forecasts, but the primary demand planning responsibility is inherently tied to the manufacturer in the CPFR framework.