Distribution Requirements Planning (DRP) is a time-phased finished goods inventory replenishment plan in a distribution network, and it determines the need to replenish inventory at branch warehouses. True or False?

Distribution Requirements Planning (DRP) is a time-phased finished goods inventory replenishment plan in a distribution network, and it determines the need to replenish inventory at branch warehouses. True or False?

• A. True
• B. False
• C. It applies only to manufacturing facilities
• D. It excludes branch warehouses from planning

Answer: (A)

Distribution Requirements Planning applies the same planning logic as MRP, but across the distribution network. It focuses on finished goods and coordinates replenishment from plants and distribution centers to branch warehouses, using demand forecasts, current inventory, lead times, and service targets to determine what to ship and when. This ensures branch warehouses have the right quantities at the right times to meet customer demand. DRP is not limited to manufacturing facilities, and it does not skip branch warehouses—it's meant to plan for them. So the statement is true.

Distribution Requirements Planning applies the same planning logic as MRP, but across the distribution network. It focuses on finished goods and coordinates replenishment from plants and distribution centers to branch warehouses, using demand forecasts, current inventory, lead times, and service targets to determine what to ship and when. This ensures branch warehouses have the right quantities at the right times to meet customer demand. DRP is not limited to manufacturing facilities, and it does not skip branch warehouses—it's meant to plan for them. So the statement is true.