DRP
Distribution Requirements Planning
Distribution Requirements Planning (DRP) is the practice of determining the time phased requirements and replenishment of goods for each location and across multiple locations in a distribution network.
Similar to MRP in a manufacturing plant, DRP calculates the purchases or transfers required to support customer orders, projected demand and inventory goals to meet Service Levels and performance goals.
Use Cases
- Distribution Center replenishment planning
- Warehouse-to-warehouse inventory replenishment planning
- Factory-to-warehouse inventory replenishment planning
- Distribution network inventory balancing
DRP is a subset of Distribution Resources Planning (DRP-II).
Notes
Alternative names include: DRP-I. DRP is referred to as the MRP/MRP-I of Distribution Networks: DRP is simply the application of MRP principles and techniques to distribution inventories – André Martin.
Criticism of Distribution Requirements Planning is that it solely focuses on material requirements and therefore ignores capacity constraints in the distribution network. DRP-II addresses these shortcomings. Order Cycle Time Supply Chain Costs Cash Conversion Cycle
Community Importance Rating:
Hierarchy
| ID | Name | Level | x |
|---|---|---|---|
| DRP-II | Distribution Resource Planning | 1 | DRP-II |
| DRP | Distribution Requirements Planning | 2 | DRP |
Process(es)
| ID | Name | Level | x |
|---|---|---|---|
| P | Plan | 1 | P |
| P2 | Plan Source | 2 | P2 |
| P201 | Gather Sourcing Demand | 3 | P201 |
| P202 | Gather Inventory & Schedule | 3 | P202 |
| P203 | Calculate Sourcing Plan | 3 | P203 |
| P204 | Publish Sourcing Plan | 3 | P204 |