Supply Chain Management Workbook
Combining a theoretical underpinning along with a means of self evaluation results, this practical guide provides an overview of the supply chain process and addresses the key aspects involved in a supply chain.
TABLE OF CONTENTS Supply Chain Management Workbook
Chapter 14: Distribution Resource Planning
Distribution resource planning (DRP) is a process for the management of material requirements for distribution centres. Distribution resource planning can integrate the demands of a number of distribution centres with the source of supply, or a centralized management of supply distribution.
Distribution resource planning, like the MPS, uses a time-phased record. The DRP requirement can be factored into the MPS to show the total distribution demand (Table 14.1). The MPS displays the distribution demands for the product, and the DRP display shows the demand for each product at the distribution centre. This gives the master scheduler the visibility to make decisions about the conflicts of supply and demand with best practice logistics.
| Past due | Week | |||||
|---|---|---|---|---|---|---|
| 1 | 2 | 3 | 4 | 5 | ||
| Distribution demand | 200 | 200 | 200 | 250 | 300 | 450 |
| Scheduled receipt | ||||||
| Projected on hand | 1200 | 1000 | 800 | 550 | 250 | 1000 |
| Master schedule receipt | ||||||
| Master schedule start | 1200 | |||||
| Notes: Safety stock = 0. Lead time = 3 weeks. Order quantity = 1200. |
The DRP is an extension of information about the total requirements of the netted MPS record. By integrating DRP with the MPS and MRP it is possible to integrate the flow of information across the purchasing, manufacturing and logistics functions. The difference between DRP and MPS is that in DRP the distribution requirements end...
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