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Distribution Resource Planning (DRP)

features:

Definition.

  • The DRP has the ability to incorporate the strategic moves of the company, such as promotions and advertising campaigns, which the organization has the ability to perceive the impact of the latest in distribution systems.
  • The DRP may provide a signal as to when a new design will be available and will allow planning to exhaust the inventory of the previous design to minimize the problems of obsolete inventory.

DRP needs the following information:

Is a method used in business administration for planning orders within a supply chain. DRP enables the user to set certain inventory control parameters (like a safety stock) and calculate the time-phased inventory requirements. This process is also commonly referred to as distribution requirements planning.

  • the demand in a future period.
  • the scheduled receipts at the beginning of a period.
  • the on-hand inventory at the beginning of a period.
  • the safety stock requirement for a period.

DRP uses several variables:

The objectives of the Distribution Planning (DRP) are:

  • The required quantity of product needed at the beginning of a period.
  • The constrained quantity of product available at the beginning of a period.
  • The recommended order quantity at the beginning of a period.
  • The backordered demand at the end of a period.
  • The on-hand inventory at the end of a period.
  • Providing accurate plan for manufacturing needs.
  • Improve levels of customer care anticipating customer demand in distribution centers and providing completed in the correct location when customer needs arise products.
  • The objective pursued is similar to MRP, ensuring that the appropriate material meets customer demand without incurring excessive inventory costs.
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