Everything about Distribution Resource Planning totally explained
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.
DRP uses several variables:
- the on-hand inventory at the end of a period.
- the backordered demand at the end of a period.
- 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.
DRP needs the following information:
the demand in a future period.
the scheduled receipts at the beginning of a period.
the safety stock requirement for a period.
the on-hand inventory at the beginning of a period.Further Information
Get more info on 'Distribution Resource Planning'.
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