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.
DRP is a subset of Distribution Resources Planning (DRP-II).
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.Community Importance Rating:
|DRP-II||Distribution Resource Planning||1||DRP-II|
|DRP||Distribution Requirements Planning||2||DRP|
|P201||Gather Sourcing Demand||3||P201|
|P202||Gather Inventory & Schedule||3||P202|
|P203||Calculate Sourcing Plan||3||P203|
|P204||Publish Sourcing Plan||3||P204|