Distribution resource planning
Distribution resource planning is a method used in business administration for planning orders within a supply chain. DRP enables the user to set certain inventory control parameters and calculate the time-phased inventory requirements. This process is also commonly referred to as distribution requirements planning.
DRP uses several variables:
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
