Requirements for Distribution Planning is a methodical approach to inventory management that establishes the best time and quantity to restock different points in a distribution network. DRP creates replenishment plans based on lead times, safety stock policies, current inventory levels, and demand forecasts. It enhances service levels, reduces holding costs, and aligns inventory flows throughout the supply chain. For real-time updates and coordination, DRP is usually integrated with Advanced Planning Systems (APS) and Enterprise Resource Planning (ERP).
