Puneet Varma (Editor)

Distribution resource planning

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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 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

    • DRP needs the following information:

  • 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

    • References

    Distribution resource planning Wikipedia
    (Text) CC BY-SA