Distribution requirements planning (DRP) is used to determine inventory replenishment needs at branch warehouses using a time-phased order point approach. Demand data is aggregated into monthly time series buckets and DRP then creates planning messages that identify when, where, and how much inventory is needed to push stock through warehouses based on forecasted customer demand. DRP explodes these requirements through MRP logic to determine gross requirements at supplying sources. Each branch can have independent or dependent demand and inventory is replenished using a push system for make-to-stock products.

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2.  Distribution Requirements
Planning
 Time Series
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3.  According to APICS, DRP is the function of
determining the need to replenish inventory
at branch warehouses.
◦ A time-phased order point approach is used where
the planned orders at the branch warehouse level
are exploded via Manufacturing Resource Planning
(MRP) logic to become gross requirements on the
supplying source.
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4.  Distribution Network for Product
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5.  Each Branch/Plant can have:
◦ Independent Demand
 Customer Forecast
 Safety Stock
◦ Dependent Demand
 Work Orders
 Transfers
 Push System
 Make-to-stock
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7.  Time Series
◦ A set of data that is distributed over time, such as
demand data in monthly time periods
 Planning Messages
◦ The output of JDE DRP that identifies the need for future
supply
 Transfers (ST/OT)
◦ Demand between Branch/Plants that are not in the same
geographical location
 OT is the transfer message at the Demand Branch/Plant
 ST is the transfer message at the Supply Branch/Plant
 Bill of Material (BOM)
◦ A listing of all the parts that go into the parent assembly
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8.  Work Order (WO)
◦ An authorization to start work on an activity or
product
 Purchase Order (OP)
◦ A suggested production order
 Lead Time
◦ A span of time required to perform a process (or
series of operations)
 Freeze Fence
◦ A policy or guideline established to note where
various restrictions or changes in operating
procedure take place
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9.  DRP is used to “push” stock through
warehouses based on forecasted customer
demand
 Time Series aggregates customer demand in
monthly buckets
 Creates Planning Messages telling Planners
when, where, and how much inventory is
needed
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