DRP, or Distribution Requirements Planning, is a business planning system that helps companies manage their inventory and distribution processes. Think of it like a smart calendar that tells companies when to order products and how much to order, so they always have the right amount of items in their warehouses. It helps prevent situations where stores run out of products (stockouts) or have too much inventory sitting around. DRP is part of the broader supply chain management field and is often mentioned alongside terms like MRP (Material Requirements Planning) or ERP (Enterprise Resource Planning).
Implemented DRP system that reduced inventory costs by 25%
Led Distribution Requirements Planning project across 5 regional warehouses
Optimized DRP processes to improve order fulfillment rates
Typical job title: "Supply Chain Planners"
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Q: How would you implement a DRP system in a company with multiple distribution centers?
Expected Answer: Should discuss steps like analyzing current distribution network, evaluating inventory policies, coordinating with warehouse managers, and managing change across the organization. Should emphasize importance of training and getting buy-in from stakeholders.
Q: How do you handle conflicts between sales forecasts and distribution planning?
Expected Answer: Should explain how to balance customer service levels with inventory costs, coordinate between sales and operations teams, and use data to make informed decisions about stock levels and distribution.
Q: What metrics would you use to measure the success of a DRP system?
Expected Answer: Should mention inventory turnover rates, order fill rates, delivery performance, warehouse utilization, and inventory carrying costs. Should understand how these metrics impact business performance.
Q: How do you adjust DRP plans when dealing with seasonal products?
Expected Answer: Should discuss using historical data, accounting for peak seasons, adjusting safety stock levels, and coordinating with suppliers for varying demand patterns.
Q: What is the purpose of DRP in supply chain management?
Expected Answer: Should explain that DRP helps determine what products are needed, where they're needed, and when they're needed across distribution networks to meet customer demand while minimizing costs.
Q: What basic information is needed to create a DRP plan?
Expected Answer: Should mention customer demand data, inventory levels, lead times, warehouse capacity, and transportation schedules as key inputs for basic DRP planning.