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Distribution Requirements Planning

Distribution Requirements Planning (DRP) matches inventory to customer demand forecasts to avoid having the wrong inventory in the wrong place. It develops time-phased replenishment plans for all products and can include strategies like product substitution, inventory aging management, and vendor managed inventory. DRP improves customer satisfaction and lowers costs while allowing for proactive planning and reducing unmet demand.

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albert
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604 views2 pages

Distribution Requirements Planning

Distribution Requirements Planning (DRP) matches inventory to customer demand forecasts to avoid having the wrong inventory in the wrong place. It develops time-phased replenishment plans for all products and can include strategies like product substitution, inventory aging management, and vendor managed inventory. DRP improves customer satisfaction and lowers costs while allowing for proactive planning and reducing unmet demand.

Uploaded by

albert
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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Distribution Requirements Planning 

Distribution Requirements Planning (DRP) provides inventory and distribution plans to meet
product demand forecasts.  We can manage the process of matching your inventory to customer
orders, so you never have to worry about having the wrong inventory in the wrong place at the
wrong time.
 
Does this sound familiar?
 You're carrying the wrong inventory in the wrong place at the wrong time
 You never seem to have "just the right amount" of inventory
  You frequently expedite shipments at high transportation costs
 You have unhappy customers with backorders, unwanted inventory substitutions,
or just simply unfilled orders

Then CPLS is the answer.


 
Features
 Develop "time-phased replenishment plans" for all of the products you carry in
inventory
 Distribution planning services are tailored to your needs and can include:
 Product substitution
  Inventory aging management
 Vendor managed inventory strategies
 Continuous replenishment processes
 Allocation and deployment of inventory to actual orders

Benefits
 Improves customer satisfaction
 Lowers transportation, inventory and overall logistics costs
 Generates higher revenues 
 Allows for proactive planning
 Reduces unmet demand

Case Studies *
 bulk chemicals (industrial)
 food & beverage
 oversized & dimensional loads

White papers *

 Identifying Supply Chain Management Solutions for Your Business


 Value Chain Strategy: Securing A Competitive Advantage

distribution requirement planning (DRP-I)


  
Show links within definitions
Definition
Systematic process for determining which goods, in what quantity, at which location, and when
are required in meeting anticipated demand. This inventory related information is then entered
into a manufacturing requirements planning (MRP-I) system as gross requirements
forestimating input flows and production schedules.
Distribution Requirements Planning (DRP) System

Distribution Requirements Planning (DRP) is defined as:


1 1. The function of determining the need to replenish inventory at branch warehouses. A
time phased order point approach is used where planned orders at the branch
warehouse level are exploded via DRP logic to become gross requirements on the
supplying source. In the case of multilevel distribution networks, this explosion process
can continue down through the various levels of regional warehouses (master
warehouse, factory warehouse, etc) and become input to the master production
schedule. Demand on the supplying sources is recognized as dependent, and standard
DRP logic applies.

2 2. In certain cases where the distribution is for a limited number of items, but a balance
must be maintained between multiple warehouse sites, master schedules based on
actual schedules sales orders and sales forecasts may be used to drive the planning
process through standard DRP logic. This may result in master production schedules for
one or more production sites.

If multiple warehouses or distributor inventories are present, the DRP system will attempt to
balance their inventories by shifting available units between inventories based on parameters
established by the user that indicate the level at which inventories may interact with one another.

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