Distribution Requirements Planning

Question 1

DRP

Answer 1

Distribution Requirements Planning

Question 2

Distribution requirements planning (DRP) defined as

Answer 2

provides the basis for integrating supply chain inventory information and physical distribution activities with the manufacturing planning and control (MPC) system.

Question 3

Role of DRP (3)

Answer 3

Coordinates material flows through the physical distribution system

Plans timings and quantities for replenishing inventories throughout the physical distribution system

Provides the results of DRP to the master scheduler in a format consistent with MRP records

Question 4

DRP and Logistics System key is

Answer 4

DRP information is key to developing logistics plans and MPS

Question 5

Logistic System Modules for DRP

Answer 5

Examples:

Capacity planning
loading
dispatching
receipt planning

Question 6

DRP links several warehouse records

Answer 6

Information about planned shipments from all field warehouses is passed along to the manufacturing facility and used as an input to developing MPS

Question 7

drp stafety stock

Answer 7

DRP allows carrying of safety stock at any location in the system

More frequent replenishment reduces the necessary safety stock
Safety lead time is also an option

Useful when delivery times are variable

Risk pooling: Aggregating uncertainty from several locations allows safety stock reductions

e.g.) Use one central warehouse instead of two regional warehouses