Distribution Requirements Planning (DRP)

Tags: Glossary

A process of planning and managing inventory and distribution to meet customer demand.

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What are Distribution Requirements Planning (DRP)?

Distribution Requirements Planning (DRP) is a process used by manufacturers and distributors to plan for the distribution of products to meet customer demand. DRP involves forecasting demand, estimating inventory levels, and determining the appropriate distribution channels to ensure that products are available to customers when and where they need them. The goal of DRP is to optimize the distribution process and minimize costs while ensuring that the right products are delivered to the right customers at the right time. 

Related Glossary terms

Consignment Inventory

Excess Inventory

Finished Goods Inventory (FGI)

Inventory Turn

Negative Inventory

Safety Stock

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