Constructing a Collaborative Planning, Forecasting, and Replenishment based on Data Mining for Refrigerated Beverage Industries

Abstract

Based on the end demand forecast, this research proposes two executive strategies of CPFR. Strategy one, satisfy the demands of customer orders and takes consider of sales forecasting. Strategy two, only considers the sales forecasting. The simulation analysis is conducted respectively in two strategies, and the inventory level will be discussed. Before CPFR, the average inventory is 55,878 in production plant, 220,845 in sales channel. Both of the two strategies of CPFR can reduce the stock significantly. If the CPFR mechanism is applied according to the end demand forecasting (strategy 2), it is estimated that the inventory of production and inventory of channels can be effectively reduced to 37,915 (decrease 32%) and 24,234 (decrease 89%) respectively after the simulation analysis.