Question about distribution resource planning in pp module

hi, my all respected sir,i want to ask question as below
1) what do you mean by distribution resource plannning and what are steps occour in this planning?
2) what is the difference between drp and mrp?
    thank you , all of you
  ok by

Hi,
Distribution Resource Planning (DRP) is a method used in business administration for planning orders within a supply chain. DRP enables the user to set certain inventory control parameters (like a safety stock) and calculate the time-phased inventory requirements.
DRP uses several variables:
     the on-hand inventory at the end of a period.
     the backordered demand at the end of a period.
     the required quantity of product needed at the beginning of a period.
     the constrained quantity of product available at the beginning of a period.
     the recommended order quantity at the beginning of a period.
         DRP needs the following information:
     the demand in a future period.
     the scheduled receipts at the beginning of a period.
     the safety stock requirement for a period.
     the on-hand inventory at the beginning of a period.
check this link:-
http://help.sap.com/printdocu/core/Print46c/en/data/pdf/PPSOPDRP/PPSOPDRP.pdf
Material Requirements Planning (MRP) is a software based production planning and inventory control system used to manage manufacturing processes. Although it is not common nowadays, it is possible to conduct MRP by hand as well.
An MRP system is intended to simultaneously meet three objectives:
     Ensure materials and products are available for production and delivery to customers.
     Maintain the lowest possible level of inventory.
     Plan manufacturing activities, delivery schedules and purchasing activities.
Regards,
Archit gandhi

Similar Messages

  • Concept and Steps of Distribution Resource Planning.....please reply

    Hi Experts,
    Can anyone tell me about the concept and steps to exicute Distribution resource planning in pp?
    Please help experts.
    Regards,
    sap pp
    Edited by: sap  pp on Jan 15, 2009 9:48 AM

    Hi,
    Distribution Resource Planning
    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.
    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, u2018Carry out control for availability check.u2019 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.
    Hope you are a bit clear now.
    Still not, refer the following link for easy understanding. Its given with simple steps and examples,
    http://help.sap.com/printdocu/core/Print46c/en/data/pdf/PPSOPDRP/PPSOPDRP.pdf
    Regards,
    Vinodh

  • Distribution resource planning, Distribution requirement Planning

    Hi PP Gurus
    Can anyone tell me what is SAP-DRP(Distribution resource planning) . Also want to know
    1. Configuration steps for DRP
    2. Transactions to complete business scenario.
    3. Prerequisites to implement SAP DRP.
    Thanks in Advance
    Hemant

    Dear
    Distribution Resource Planning
    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.
    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, u2018Carry out control for availability check.u2019 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.
    Distribution Requirement Planning :
    Generates stock transport requisitions between locations.
    Accounts for time-dependent safety stocks when the replenishment stock is calculated.
    Initiates planning runs in a net change procedure or in a regenerative planning mode
    Deployment
    When demand is greater than supply, deployment calculates a fair share quantity based on the available-to-deploy (ATD) quantity and requirements in the distribution centers to be supplied.
    When supply is greater than demand, deployment calculates distribution of stock using pull or push logic within the distribution network according to planned requirements.
    Generates stock transport orders from suggested orders in the DRP plan.
    Prioritizes quantities supplied based on requirements types (customer order, forecast, and safety stock).
    Multi-Sourcing Using Quota Arrangements
    Lets multiple plants supply a percentage of the material required by a single location, which makes it possible to prioritize the deliveries made by plants and to specify maximum delivery quantities for particular time periods.
    Represents simple capacity constraints, and combines the percentage-based and maximum quantity approaches.
    Lets you establish minimum, maximum, and rounding profiles for lot sizing within the network.
    Lets you change the distribution network at future dates.
    Lets you offset delivery times for specific items from the sourcing location to the replenishment location.
    Single-Sourcing Using Special Procurement Keys
    Hope this above details will be useful for your requirement .
    Regards
    JH

  • Distribution requirements planning and distribution resource planning

    Hi,
                  In PP, is there any difference between the distribution requirements planning and distribution resource planning?
    The glossary shows that they are different.
    I am trying to understand the SNP DRP. Which one of the above correspond to this SNP DRP?
    If there is anything like PP-distribution requirements planning, can some one please refer me any documentation.
    Thank you.

    Hi Kedar ,
    Pls go through
    <a href="http://help.sap.com/saphelp_46b/helpdata/en/cb/7f880843b711d189410000e829fbbd/frameset.htm">DRP</a> for both.
    Distribution Resource Planning is fully related to Deployment ,whereas Requirement Planning includes deployment plus requirement run in net change or regenerative .
    (In Feature parts of this Document )
    Regds// Digs..

  • Distribution Resource planning

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

    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&#63719;including plants, distribution centers (DCs),
    warehouses, and stock transfer points&#63719;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&#63719;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

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