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Distribution Resource Planning (DRP) is a method used in Business Administration for planning orders within a Supply Chain . DRP enables the user to set certain inventory control parameters (like a safety stock) and calculate the time-phased inventory requirements.

DRP uses several variables:
  • the on-hand inventory at the ''end'' of a time period.

  • the backordered demand at the end of a time period.

  • the required quantity of product needed at the beginning of a time period.

  • the constrained quantity of product available at the beginning of a time period.

  • the recommended order quantity at the beginning of a period.


DRP needs the following information:
  • the demand in a future time period.

  • the scheduled receipts at the beginning of a time period.

  • the safety stock requirement for a period.

  • the on-hand inventory at the beginning of a period.



REFERENCES

Feigin, G.E., Katircioglu, K., Yao, D.D.: ''Distribution Resource Planning systems: a critique and enhancement.''.


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