Distribution Requirements Planning

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Distribution Requirements Planning

Distribution requirements planning (DRP) is a systematic process to make the delivery of goods more efficient by determining which goods, in what quantities and at what location, are required to meet anticipated demand. The goal is to minimize shortages and reduce the costs of ordering, transporting, and holding goods. In addition, this supports the production, procurement and customer satisfaction processes by indicating actions to be taken to accelerate or delay purchases and consequently production, thus synchronizing supply and demand.

 

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