Distribution Resource Planning (DRP) 

Purpose

The objectives of Distribution Resource Planning (DRP) in the SAP R/3 System are:

Deployment lets you take action when a requirements shortage or surplus is calculated as a result of DRP runs. Deployment uses algorithms for "fair share" distribution when demand exceeds supply and "push," "pull," or "pull/push" distribution when supply exceeds demand.

Implementation Considerations

Before you can use DRP for planning and deployment, you must set up a distribution network. A distribution network represents possible delivery relationships between the supplying plants and the distribution centers. DRP entails planning the supply chain from sales planning through delivery to the distribution centers, assuming there are sales orders or that sales forecasts are available. The primary aim of planning is to determine the quantities required on specific dates, including the lead times of the distribution lanes. The distribution network defines the normal supply method for execution.

A "plant" in SAP is a generic term for a location that refers to a variety of different node types; for example, a manufacturing facility, a customer site, or a distribution center.

Integration

DRP is in the application component hierarchy under PP-SOP-DRP.

The application components described in the following table are part of DRP. To access these components, choose DRP.

DRP Menu Items

Component Description

Component

Purpose in DRP

Material Master

LO-MD-MM

Creates stock items (and controlling elements of items), locations, and policies that are used in the deployment process.

Inventory Management

MM-IM

Tracks inventory availability in all stock categories and supply and demand for an item. Also allows for the physical movement of inventory.

Sales Planning,
Forecasting, and
Demand Management

LO-LIS-PLN,
PP-SOP,
PP-MP-DEM

Creates forecasts of customer demand, which results in the creation of independent requirements at the distribution center. These independent requirements are later consumed by actual customer orders.

Purchasing

MM-PUR

Creates quota arrangements that control the supply relationships in the network.

Materials Requirements Planning

PP-MRP

Determines net supply and demand, resulting in a proposal for the transfer of inventory from the plant to the distribution center.

See also:

Availability Checking (SD-BF-AC) in the section, Related Documentation. Availability checking is used in DRP to calculate the deployment quantity.

Features

Distribution Network tool

Distribution Requirements Planning

This functionality is contained in DRP Run, which is also referred to as the Planning Run in Material Requirements Planning (PP-MRP).

See also:

Material Requirements Planning (PP-MRP) in the section, Related Documentation.

Deployment

Multi-Sourcing Using Quota Arrangements

Single-Sourcing Using Special Procurement Keys