DISTRIBUTION

REQUIREMENT PLANNING

BY:
SNEH KARAMCHANDANI(25)
MAYANK KHASGIWALA(26)
GAURAV KOTHARI(27)
ASHWINI KUMAR(28)
VAIBHAV KUMAR(29)
NIKHIL LAMBA(30)
What is DRP?

DRP provides the basis for integrating

supply chain inventory information and
physical distribution activities with the
Manufacturing Planning and Control
system.
What is DRP?

Managing the flow of materials between

firms, warehouses, distribution centers.
DRP helps manage these material flows.
Just like MRP did in Manufacturing.
Links firms in the supply chain by
providing planning records that carry
demand information from receiving
points to supply points and vice versa.
Marketing Benefits

Increases service level and decrease

customer complaints.
Improve inventory coordination.
Enhances ability to offer customer a
coordinated inventory management
service.
Logistical Benefits

Reduces freight costs.

Reduces inventory level.
Decreases warehousing space.
Reduces customer freight cost.
Enhances budgeting capitability.
Constraints of DRP
Inventory planning systems require
accurate and coordinated forecasts for
each distribution center.
Integrated planning is subject to system
nervousness and frequent rescheduling,
because of production breakdowns and
delivery delays.
DRP is not the universal solution for
inventory management.
Objectives Of DRP
The objective of Distribution Resource Planning
are,
To improve customer service levels by anticipating
customer demand at distribution centers and providing
finished products at the correct location when customer
needs arise.
To provide an accurate requirements plan for
manufacturing.
To optimize the distribution of available stock in the
distribution network using the deployment function.
 CUSTOMERS

DISTRIBUTION DISTRIBUTION DISTRIBUTION DISTRIBUTION

CENTER CENTER CENTER CENTER

DISTRIBUTION DISTRIBUTION
CENTER CENTER

REGIONAL
WAREHOUSE REGIONAL
WAREHOUSE

PLANT WAREHOUSE

FINAL ASSMEBLY
(MANUFACTURING)

SUB ASSEMBLY B SUB ASSEMBLY C SUB ASSEMBLY D

SUB ASSEMBLY A PART C PART D PART E

PART A PART B

RAW MATERIALS
Difference between DRP and MRP
  MRP DRP

Scope Inbound logistics Outbound logistics

Guiding factor Guided by production Guided by customer

schedules demand

Control of the firm Under control of the Not under control of

firm the firm
Demand situation Operates in dependant Operates in
demand situation independent demand
situation
Area of operation & Coordinates scheduling Coordinates demand
coordination & integration of between outlets &
materials into finished supply sources
goods

Stage of functioning Controls inventory Controls inventory

until manufacturing & after manufacturing &
assembly is complete assembly of finished
goods
Planning availability of Raw materials Market[retailers] &
stock at? stores,conversion process warehouses
& finished goods store
Functions

Forecast demand for each stock-

keeping unit (SKU)
Current inventory level of the SKU
Target safety stock
Recommended replenishment
quantity
Replenishment lead time
DRP Menu Items
Component Description
Material Master
Inventory Management
Sales Planning, Forecasting and
Demand Management
Purchasing
Materials Requirements Planning
Purpose in DRP
Creates stock items and controlling
elements of items, locations and
policies that are used in the deployment
process.
Tracks inventory availability in all
stock categories and supply and
demand for an item.Also allows for the
physical movement of inventory.
Creates forecasts of customer demand
which results in the creation of
independent requirements at the
distribution center.These independent
requirements are later consumed by
actual customer orders.
Creates quota arrangements that control
the supply relationships in the network.
Determines net supply and demand
resulting in a proposal for the transfer
of inventory from the plant to the
distribution center.
Material Master
Inventory Management
Purchasing
System Description
Overview
The goal of the Distribution Resource Planning
(DRP) functionality is to allow users of commercial
editions of xTuple to be able to generate planned
Transfer Orders between Sites either manually or
using netting logic contained in the Material
Resource Planning (MRP) and Master Production
Schedule (MPS) algorithms. Users will be able to
manage and release planned Transfer Orders
using the same tools that are currently provided to
do these activities for other Planned Order types.
Transfer Order
List Transfer Orders
Release Transfer Order By
Agents
Site
Item Site
Planned Order
Process Flow
Conclusion
Thus at the end we would like to conclude by
saying that Distribution Requirements Planning
(DRP) provides inventory and distribution plans to
meet product demand forecasts. It can manage
the process of matching the company’s inventory
to customer orders, so that it will never have to
worry about having the wrong inventory in the
wrong place at the wrong time. After all it's all
about timing!