The next step would be for the system to combine the requirements of all the regional warehouses in each time bucket, to give the combined demand for each.
Transport planners will then receive a completed forward schedule for every warehouse in the system, arranged by date and warehouse. DRP is usually used with an MRP system, although most DRP models are more comprehensive than stand-alone MRP models and can schedule transportation.
The underlying rationale for DRP is to more accurately forecast demand and then use that information to develop delivery schedules. This way, distribution firms can minimise inbound inventory by using MRP in conjunction with other schedules.
In summary, DRP helps ensure that outlying or regional warehouses, the warehouses that supply the customer, are always stocked:
- With the RIGHT GOODS;
- In the RIGHT QUANTITY; and
- At the RIGHT TIME.