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Published in:
2007 | OriginalPaper | Chapter
Distribution Requirements Planning
Published in: Service Parts Planning with mySAP SCM™
Publisher: Springer Berlin Heidelberg
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One characteristic of the service parts planning solution is the tree structure which is defined in the BOD. The implication of this structure is that the demand for the whole network is sourced via external procurement at the entry location (or at the entry locations, if the BOD has multiple entry locations). The purpose of DRP is to determine the procurement quantity taking the demands (forecast, safety stock, confirmed stock transfer demands and fixed demands), the inventory, the confirmed receipts, the lead times, the days of supply (i.e. the economic order quantity) and the pack stages of the whole supply network into account. Figure 8.1 shows the process overview of DRP.