The function of planning inventory levels, supply and replenishment logic, and demand response for an organization's distribution network. After defining the network, orders and forecasts at distribution facilities that drive projected stock levels below the reorder point trigger a suggested replenishment order from the supply source, based on lead time and lot size parameters. Each distribution point passes demand to the next supply source, which is either a vendor, another distribution center or a manufacturing plant. DRP also incorporates logistics resource planning, and is sometimes described as MRP for a finished goods network.
( DRP): A computer system that uses MRP techniques to manage the entire distribution network and to link it with manufacturing planning and control.
Planning the material requirements of the key resources contained in a distribution system.
Abbreviation: DRP-II The set of concepts, procedures and techniques, being an extension of DRP-I, for the effective planning and control of the physical distribution.
The extension of distribution requirements planning into the planning of the key resources contained in a distribution system: warehouse space, workforce, money, trucks, freight cars, etc.
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.