ISM Exam INTE Topic 5 Question 26 Discussion

Actual exam question for ISM's INTE exam

Question #: 26
Topic #: 5

[All INTE Questions]

A large retailer and one of its suppliers establish a process to combine intelligence from both organizations in order to improve product availability while reducing inventory, transportation, and logistics costs. This process is known as which of the following?

AVendor-managed inventory

BCollaborative planning, forecasting and replenishment

CSales and operations planning

DEnterprise resource planning

Show Suggested Answer

Suggested Answer: B

The process described is Collaborative Planning, Forecasting and Replenishment (CPFR), which involves both the retailer and supplier working together to improve product availability and reduce costs associated with inventory, transportation, and logistics. Reference: CPFR is a widely adopted strategy in supply chain management to enhance collaboration and optimize the supply chain.

by Laurena at May 03, 2025, 02:19 PM

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Lai

3 days ago

Hmm, I was tempted to go with A) Vendor-managed inventory, but B) makes more sense given the collaboration mentioned in the question. I hope I don't 'supplier' this one up!

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Anglea

13 days ago

I agree, B is the way to go. This process sounds like a win-win for both the retailer and supplier, as long as they can agree on the forecasting and replenishment plan.

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Penney

18 days ago

I think D) Enterprise resource planning is not the correct answer, as it focuses more on integrating internal processes rather than collaboration with external partners.

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Lettie

21 days ago

B) Collaborative planning, forecasting and replenishment seems like the most accurate answer. The question mentions combining intelligence between the retailer and supplier, which aligns with the collaboration aspect of this process.

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