Applying six sigma methodology to collaborative forecasting

Collaborative planning, together with forecasting and replenishment (CPFR), is a processing tool that improves supply chain management (SCM). The majority of studies done on CPFR have focused on identifying the advantages and future developments of CPFR, along with providing explanations for the implementation stages of CPFR. Six Sigma methodology is a method that can lead to a continuous decrease in process variances. In this paper, we applied Six Sigma methodology and proposed a continuous improvement model on different phases of CPFR. We used a case study to demonstrate how to improve the performance of collaborative forecasts. The results show that the proposed improvement model can effectively improve the accuracy of collaborative forecasts.