Introduction to DRP
Distribution requirements planning (DRP) balances supply and demand in a time-phased manner for items transferred between sites. These sites may exist in different domains within a single database or in domains in several databases connected over a network.
The transfer of demand from the site receiving the items (receiving or demand site) to the site supplying the items (shipping or supply site) is facilitated through the generation of intersite requests. DRP calculates distribution item requirements, generates intersite requests, and manages shipment schedules and transportation.
At the shipping site, intersite requests are grouped and associated with a single distribution order (DO), which manages shipments to the demand site. The DO shipment transfers inventory into a goods-in-transit (GIT) location. When the demand site receives the goods, they are transferred from GIT into a true location at the demand site.
While intersite requests are typically created at the receiving site, it is possible to create an intersite request as part of maintaining a distribution order at the shipping site.
Under some conditions, using sales and purchase orders may be a better option than DRP.
See
Purchase Orders and Sales Orders for a discussion of these conditions.