The Impact of CPFR on Supply Chain Performance: A Simulation Study

1 We would like to thank the following for their comments on the earlier versions of the paper: (i) the Special Issue editors and the two anonymous referees for their insightful comments-2-Abstract This paper explores the benefits of an emerging initiative in the consumer products products. To evaluate CPFR benefits, we compare it with the traditional reorder point (ROP) method, where members in the supply chain independently plan and operate the supply chain. A comprehensive simulation model is built based on data adapted from the operations of a Fortune-500 company. The simulation compares CPFR with ROP on four performance metrics: fill rates, supply chain cycle time, supply chain inventory, and shareholder value. The results indicate that when compared to ROP, CPFR increases fill rates and shareholder wealth while decreasing supply chain inventory and cycle time, confirming that collaborative planning produces substantial benefits to all trading partners.-3