Answer» What is Distribution Resource Planning mean?
Distribution resource planning (DRP) 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.
DRP uses several variables:
the required quantity of product needed at the beginning of a periodthe constrained quantity of product available at the beginning of a periodthe recommended order quantity at the beginning of a periodthe backordered demand at the end of a periodthe on-hand inventory at the end of a period
DRP needs the following information:
the demand in a future periodthe scheduled receipts at the beginning of a periodthe on-hand inventory at the beginning of a periodthe safety stock requirement for a period reference
