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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

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Hierarchy

IDNameLevelx
DRP-IIDistribution Resource Planning1DRP-II
DRPDistribution Requirements Planning2DRP

Process(es)

IDNameLevelx
PPlan1P
P2Plan Source2P2
P201Gather Sourcing Demand3P201
P202Gather Inventory & Schedule3P202
P203Calculate Sourcing Plan3P203
P204Publish Sourcing Plan3P204

Metric(s)

IDNameLevelx
RS1Order Cycle Time1RS1
CO1Supply Chain Costs1CO1
AE1Cash Conversion Cycle1AE1

Term(s)

IDNameClearx
DRP-IIDistribution Resource PlanningDRP-II
Distribution Requirements Planning Distribution Resource Planning 2 2 Distribution, Network, Inventory, Replenish, Plan, Warehouse, DC, Distribution, Center, Supply Chain The practice of determining the time phased requirements and replenishment of goods for each location and across multiple locations in a distribution network