Distribution Resource Planning or DRP refers to a planning process that allows you to define some inventory level control parameters, such as the security or safety stock, and to calculate inventory requirements over time based on sales forecasts and orders.
This process integrates several variables such as:
– product quantity required at start of cycle
– maximum product quantity available at start of cycle
– recommended order quantity at start of cycle
– pending request at end of cycle
– inventory available at end of cycle
For optimal operation, the Distribution Resource Planning process requires the collection of different input data, such as:
– Sales forecasts
– Revenue forecasts
– Inventory at start of cycle
– Security stock required for cycle
