{{Business logistics
Distribution resource planning (DRP) is a method used in
business administration
Business administration is the administration of a commercial enterprise. It includes all aspects of overseeing and supervising the business operations of an organization.
Overview
The administration of a business includes the performance o ...
for planning orders within a
supply chain
A supply chain is a complex logistics system that consists of facilities that convert raw materials into finished products and distribute them to end consumers or end customers, while supply chain management deals with the flow of goods in distri ...
. 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''.
it consolidates the demands for multiple locations of several distribution centers with the sources of supply.
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
See also
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Distribution (business)
Distribution is the process of making a product or service available for the consumer or business user who needs it, and a distributor is a business involved in the distribution stage of the value chain. Distribution can be done directly by the ...
Supply chain management
In commerce, supply chain management (SCM) deals with a system of procurement (purchasing raw materials/components), operations management, logistics and marketing channels, through which raw materials can be developed into finished produc ...