CLTD Certification in Logistics, Transportation and Distribution (#21)

A company is considering implementing collaborative planning, forecasting, and replenishment (CPFR). Which of the following statements best reflects one of the objectives of CPFR?

It represents a sequence of business processes between consumers and retailers.
It replaces traditional forecasting methods with a shared single forecast among trading partners.
It represents a sequence of business processes within the manufacturing environment.
It replaces traditional inventory management procedures with a vendor-managed (VMI) system.