DRP

Question 1

DRP

Answer 1

Distribution Requirements Planning

Question 2

Distribution requirements planning (DRP) provides the basis for

Answer 2

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

Question 3

Role of DRP

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

Safety Stock

Answer 4

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