Lean and Technology: Working Hand in Hand to Enable and Energize Your Global Supply Chain

14. Distribution Requirements Planning (DRP)

Distribution requirements planning (DRP) is technique used for the efficient delivery of goods that involves determining the item quantities, location, and timing required to meet forecasted demand. The goal of DRP is to maximize product availability and reduce the costs of ordering, transporting, and holding product (see Figure 14.1).

Figure 14.1 Distribution Network

DRP generates time-phased requirements for single- and multi-facility distribution organizations (i.e., where a central facility supplies regional facilities, which then supply other facilities in a tree-like structure). This process ...