Distribution Requirements Planning (DRP)

Distribution Requirements Planning (DRP) is a method used by companies to manage and coordinate the flow of products from production facilities to retail outlets or customers. It ensures that the right amount of inventory is available at each location when needed, minimizing excess stock and stockouts. DRP uses forecasting, sales data, and current inventory levels to plan future orders and shipments efficiently. By doing this, companies optimize their supply chain, reduce costs, and better meet customer demand, ensuring products are available where and when they are required.