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.

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.

[edit] References

Feigin, G.E., Katircioglu, K., Yao, D.D.: Distribution Resource Planning systems: a critique and enhancement..