Distribution Resource planning

Question

What is Distribution Resource planning ? Please explain me with few examples?
thanks in advance
PSS

Answer 1

Hi there,
Purpose
Distribution resource planning provides a framework for determining the need to replenish
inventory by:
• Linking market requirements with manufacturing and demand management
• Relating current inventory positions and demand forecasts to production scheduling
• Matching material supply to manufacturing demand, and customer demand to product
supply
Process Flow
1. You define all nodes in the networkincluding plants, distribution centers (DCs),
warehouses, and stock transfer pointsusing the Distribution Network tool. See
2. You set up the material master record for each node. In MRP 4 of the material
master record, you must define the deployment strategy for each material (the fair and
push distribution options) as well as deployment horizon (push horizon). For the push
horizon, enter the number of days for which the system considers the ATD quantity and
any additional quantity produced. Any quantity produced beyond the push horizon is not
considered in the deployment calculation.
3. To calculate an available to deploy (ATD) quantity, use the availability check rule,
DE, in Customizing, ‘Carry out control for availability check.’ The availability check and
the deployment checking rule, determine the MRP elements that are used to calculate
the ATD quantity.
4. You create a forecast for each DC; for example, a sales forecast.
5. You transfer the forecasted data to Demand Management. The system creates
independent requirements.
6. You perform a DRP run in each DC and in each supplying plant. The DRP run
considers the quota arrangements defined in the network, available stock, sales orders,
and independent requirements.
• The DRP run in the DCs creates releases for stock transport requisitions in the
supplying plants.
• The DRP run in the supplying plants creates planned orders for production.
7. You convert planned orders into production orders for manufacturing.
You run deployment to produce stock transport orders for distribution of stock from the supplying
plants to the DCs.
Running DRP
Purpose
In DRP, during the net requirements calculation, the system compares available stock and the
scheduled receipts from the supply source with planned independent requirements and incoming
sales orders. If there is a material shortage (available stock is less than the quantity required),
the system creates an order proposal.
The system calculates the quantity recorded in the order proposal (in the form of a requisition)
based on the lot-sizing procedure you specify in MRP 1 of the material master record.
The system also schedules the order proposal. Delivery and release dates are determined from
the transport time and time associated with goods receipt processing.
The system can process DRP for the whole supply chainincluding the production plants. DRP
includes production and purchasing into the planning process for the production plant.
Prerequisites
In order to perform a DRP run, you must:
• Set up a distribution network, including identification of quota arrangements and lead
times.
• Define MRP parameters in the material master record for all the materials in the
distribution network.
Process Flow
1. You schedule the DRP runs for your network in the same way you would schedule an
MRP run.
2. You perform the DRP run:
– A DRP run on one material is the same as single-item, single-level planning in the MRP
run. Because the deployment plan involves finished goods, there is only single-material,
single-level planning of individual materials without explosion to lower levels.
– A DRP run on one plant is the same as total planning in the MRP run. Single-plant
planning involves planning all the materials in a certain location that are relevant for
requirements planning.
– A DRP run using mass processing allows you to process several locations at once so
that the whole supply chain is planned.
3. You use net change planning to plan only materials that change relevant to distribution
requirements planning since the last planning run (for example, change in a sales order
quantity or date). Net change planning improves system performance for large, complex
distribution networks with many materials. If a material is changed in a way that is
relevant to the planning run, it is given a net change indicator, and included in the next
planning run.
Performance can be improved even further by using the change planning within the
planning horizon. Only changes relevant to requirements planning that fall within the
user-defined planing horizon are included in the planning run. To keep the planning
results up to date, perform a total planning run regularly (weekly or monthly).
for planning. Regenerative planning is performed in the implementation stages.
4. If you are using mass processing, determine the sequence in which the series of DRP
runs must be executed.
Result
The information resulting from the DRP runs includes purchase requisitions and scheduling
agreements. Use these to plan how to supply the distribution centers in your network. The DRP
run in the DCs creates releases for stock transport requisitions in the supplying plants. A DRP
run on the supplying plants creates planned orders for production.
Regards
Hemant G