DRP is a process for determining inventory needs across distribution networks. It identifies which items are needed, in what quantities, at which locations, and when to ensure efficient fulfillment and responsiveness. DRP must be integrated with manufacturing planning to maximize customer service by having the right inventory in the right place at the right time.
2. DRP is ‘implosion’ of distribution networks
Main KPI to evaluate the effectiveness
of Organization:
Fulfillment rate & Responsiveness
DRP and MPS must be integrated
to maximize customer service
3. What we answer in DRP :
Systematic process of determining
#1 which inventories?
Items that are needed to be taken care of
#2 In what quantity?
How much will be required from those identified item so that manufacturing unit will be informed to ensure supplying in
agreed lead time or managing the supply from main warehouse
#3 At which location?
Vital role as stock is in 1 DC and need in another DC.
#4 When are required?
Efficient distribution is an important KPI to meet on agreed Lead time
