DRP: Joint Requirement Planning in Distribution Centre and Manufacturing

Abstract

Companies are always seeking differentiation from their competitors. Efforts are made by providing the best service to consumers, fast order fulfillment, reliable delivery times, and better response to inquiries about products, orders, and deliveries. This paper aims to provide an overview of joint distribution planning between distribution centre and manufacturing industry with DRP logic. Distribution Resources Planning (DRP) is a method that can be used to integrated inventory policy in distributors and manufacturing. DRP implementation starts from managing sales forecasts, creating master schedules, and running DRP. The DRP represents a way of thinking with respect to managing the entire function of distribution. The DRP Method can be known the optimal number of order lot sizing, frequency of ordering, safety stock at each distribution centres. DRP can reduce the frequency of ordering so that the cost of the order becomes minimize. DRP implementation reduces 23,9% of order frequency and saves order cost 42,9%.