Distribution Requirement Planning
Distribution Requirement Planning
Distribution Requirement Planning
Requirements Planning
Chapter 8
Vollmann, Berry, Whybark, Jacobs
What is DRP?
DRP provides the basis for integrating
supply chain inventory information and
physical distribution activities with the
Manufacturing Planning and Control
system.
What is DRP?
Managing the flow of materials between
firms, warehouses, distribution centers.
DRP helps manage these material flows.
Just like MRP did in Manufacturing.
Links firms in the supply chain by
providing planning records that carry
demand information from receiving points
to supply points and viceversa.
DRP and the MPC linkages
In the Front End one of the linkages is with
demand management which connects it
with the customers (via the MPS).
In the Back End one of the linkages is with
the vendors.
Fig. 8.1
DRP and the Marketplace
DRP starts in the marketplace. Some firms
gather information on inventory levels and
product usage from customers.
This knowledge of their customer
requirements provides firms the
opportunity to make-to-knowledge.
This is specially true when they have
vendor managed inventories.
DRP Purposes:
DRP enables the firm to capture data,
including local demand conditions, for
modifying the forecast and to report
current inventory positions.
DRP provides data for managing the
distribution facility and the database for
consistent communications with the
customers and the rest of the company.
DRP & Demand Management
Demand management is the connection
between mfg. and the marketplace.
Plans derived from the DRP information
and shipping requirements are the basis
for managing the logistics system.
Continually adjusts changes in the
demand, sending inventories from central
warehouse to distribution centers where
they are needed.
DRP & Demand Management (Cont)
DRP is connected to the logistics system
By helping determine vehicle capacity
planning.
Helping loading.
Developing vehicle dispatching.
Determining warehouse capacity.
Provides the data to accurately say when
availability will be improved and delivery can
be expected.
DRP and MPS
Organizational support
Problem solving
Data Integrity and completeness