Distribution Resource Planning (DRP)
Demand can be classified into two types: dependent and independent. Demand for a finished product is independent; demand for a component used in making the product is dependent. Forecasting should be done only for the independent demand; dependent demand can be calculated from the forecast.
Like MRP, distribution resources planning (DRP) organizes dependent demand. Before we look more closely at DRP, we'll draw a distinction between systems that pull inventory through the distribution chain toward the retail end and systems that push inventory down the chain. In reality, many distribution chains include elements of both push and pull systems. The question for the supply chain manager is which system is best adapted to the needs of his or her chain.
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