Podcast Beta
Questions and Answers
A major tool in distribution requirements planning (DRP) systems is
Distribution requirements planning (DRP) provides a link between
Distribution requirements planning (DRP) and material requirements planning (MRP) use a consistent data format.
True
Customer purchases are generally part of dependent demand.
Signup and view all the answers
When multiple warehouses are part of a system, distribution requirements planning (DRP) data are generated for each warehouse.
Signup and view all the answers
Distribution requirements planning (DRP) accomplishes which of the following?
Signup and view all the answers
What is the shipping quantity in this example?
Signup and view all the answers
What is the lead time in this example?
Signup and view all the answers
What is the most likely value for the safety stock in this example?
Signup and view all the answers
What will the planned shipments be for periods 2, 3, and 4?
Signup and view all the answers
What is the projected available balance for period 4?
Signup and view all the answers
The time-phased order point (TPOP) approach uses what type of data to determine requirements?
Signup and view all the answers
The implosion process refers to
Signup and view all the answers
Using the error add-back method, what would the revised forecast for period 2 become in this example?
Signup and view all the answers
Distribution requirements planning (DRP) systems can utilize both safety stock and safety lead time.
Signup and view all the answers
Aggregating safety stock from several warehouses to a single location should result in lower overall levels of safety stock (assuming customer service goals are held constant).
Signup and view all the answers
In distribution requirements planning (DRP) systems, forecast bias is a more serious problem than forecast errors.
Signup and view all the answers
In most supply chains, raising customer service goals has which of the following consequences?
Signup and view all the answers
In most supply chains, lowering inventory levels has which of the following consequences?
Signup and view all the answers
In most supply chains, reducing labor cost goals has which of the following consequences?
Signup and view all the answers
The following distribution requirements planning (DRP) record most likely reflects which of these situations?
Signup and view all the answers
Study Notes
Distribution Requirements Planning (DRP) Overview
- DRP is a vital tool for managing inventory and distribution across multiple locations.
- DRP records are crucial for the functionality of DRP systems.
- Facilitates a connection between internal and external manufacturing planning and control (MPC) systems.
Relationships with Other Planning Systems
- Links between master production scheduling (MPS) and material requirements planning (MRP) help ensure a cohesive supply chain process.
- Consistent data formats are utilized in both DRP and MRP.
Demand Concepts
- Customer purchases are part of independent demand rather than dependent demand.
Warehouse Integration
- DRP generates data specific to each warehouse in systems with multiple facilities.
Planning Data Preparation
- DRP provides essential information for manufacturing, logistics, and sales operations planning.
Functionality of DRP
- Extends visibility in manufacturing planning and control (MPC) and summarizes detailed field information.
Calculations Using DRP Data
- Shipping Quantity: Calculation of shipping quantity is critical; in scenarios provided, the shipping quantity was determined to be 300 units.
- Lead Time: In examples, lead time was established as 3 periods, indicating delayed restocking.
- Safety Stock: Most likely safety stock value was calculated to be 150 units.
- Planned Shipments: In specific scenarios, planned shipments were consistently stated as 50 units across several periods.
Order Requirement Approaches
- Time-phased order point (TPOP) uses forecasts to determine requirements.
Data Aggregation and Efficiency
- The implosion process accumulates DRP data from multiple warehouses for central analysis, enhancing efficiency.
- Safety stock aggregation from various warehouses leads to reduced overall levels of safety stock while maintaining service levels.
Forecasting and Bias
- In DRP systems, forecast bias significantly impacts supply chain efficiency and is considered a more serious issue than forecast errors.
- Adjustments to forecasts using error add-back methods can affect future predictions, exemplified by a revised forecast of 120.
Customer Service and Cost Implications
- Increasing customer service goals generally results in higher inventory levels and customer service levels, but does not directly lead to lower total costs.
- Lowering inventory levels contributes to reduced total costs while typically lowering service levels.
Labor Cost Management
- Reducing labor cost goals often leads to higher inventory levels yet can also result in lower total costs.
Specific Situational Insights
- Changes in safety stock policies might be indicated by specific patterns in the DRP records, such as projected available balances and planned shipments.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Test your knowledge on Distribution Requirements Planning (DRP) with these flashcards from SCMN 4770 Chapter 14. Each card covers key concepts and terminology essential for understanding DRP systems. Perfect for students looking to reinforce their learning in distribution management.
