Ninad-DRP - Distribution Requirement Planning Ninad Sawant,...

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Distribution Requirement Planning Ninad Sawant, MBA-LSCM (Sem I, 2010-12) H ave you ever thought what happens to a product once it’s manufactured? Do you think it’s as simple as picking the finished product and carrying it to the customer’s doorstep? Well it’s not that simple in the industry. To understand this we need to understand who is a Distributor. The APICS Dictionary describes a distributor as "A business that does not manufacture its own products but purchases and resells these products. Such a business usually maintains a finished goods inventory." Now let us try to understand what Distribution Requirement Planning is. Distribution Requirement Planning (DRP) is defined as a systematic process for determining which goods, in what quantity, at which location, and when are required in meeting anticipated demand. This inventory related information is then entered into a manufacturing requirements planning system as gross requirements for estimating input flows and production schedules . DRP mainly takes into consideration three factors: 1. What quantity? - Is it only the forecast quantity for given item. If so, when market is buoyant and requires more stocks how are we going to tackle the situation. 2. When (Time Period) are we going to dispatch the quantity? On Monthly basis, Weekly basis or daily basis? 3. Which locations are we going to dispatch the quantity? This requires clear understanding of "Distribution Network Design" of the organization. DRP Requirements:
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This note was uploaded on 10/13/2011 for the course LSCM 723 taught by Professor Dr.neerajanand during the Fall '11 term at University of Management and Technology.

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Ninad-DRP - Distribution Requirement Planning Ninad Sawant,...

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