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Glossary Supply Chain / Term

distribution resource planning (DRP)

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.

Permanent link distribution resource planning (DRP) - Creation date 2021-11-03


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