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DRP: Distribution Resource Planning, New Component in 4.0A ( RELN40A_PP-SOP-DRP )

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Short text

DRP: Distribution Resource Planning, New Component in 4.0A

Description

The objectives of DRP in the SAP R/3 System are two-fold:

• To provide Production Planning with an accurate requirements plan, referred to as 'distribution requirements planning'
  
  

On the whole, distribution requirements planning can be done using techniques available in SAP's Material Requirements Planning (MRP) component. The planning results account for the fact that requirements can be satisfied by more than one supply center and include stock transfers (or stock tranfer requisitions), which enable you to guarantee the stock level required in the distribution center.

• To optimize the distribution of available stock levels in the distribution network, referred to as "deployment"
  
  

Deployment enables you to take appropriate action when either a requirements shortage or surplus is calculated as a result of distribution requirements planning runs at different time intervals. Deployment makes use of algorithms for "fair share" distribution when a requirements shortage is detected and "push" distribution when a requirements surplus is detected.

Network

The new Network tool enables you to create and manage the distribution network graphically. For example, you can

• Place plants and distribution centers on maps with the aid of drag and drop techniques.

• Define delivery relationships between two plants by connecting them with a line.

• Maintain master data directly within the Network tool simply by clicking on an icon that represents a plant or a line connecting the plant icons.
  
  

DRP Enhanced Functionality

• Use of the forecast error and the standard service level to calculate safety stocks in distribution centers

• Inclusion of a customer exit for the calculation of safety stock

• Greater flexibility in the use of time-dependent reorder points through new methods for calculating

• Safety stock

• Time-dependent safety stock

• Visibility of intransit quantities

• Determination of lead time for time-phased requirements
  
  

Deployment

• Calculation of a fair share allocation based on actual stock and requirements in the distribution centers to be supplied

• Calculation of equal distibution of stock within the distribution network according to the forecast using push distribution

• Generation of stock transport orders

• Prioritization of quantities supplied based on requirements types (customer, order, forecast, safety stock)
  
  

Software/hardware requirements

Installation information

Effects on System Administration

Effects on Customizing

Changes in procedure

Dependent functions

Before planning and execution can be carried out using DRP, a distribution network must be built. A distribution network represents possible delivery relations for individual materials. DRP typically entails planning the supply chain from internal deliveries to the distribution center that supplies customers. It is normally assumed either that sales orders exist or that sales estimates are available. The primary aim of planning is to determine the quantities required on specific dates, including the lead times of the distribution lanes.

Planning

Further notes

For more information, see "PP Distribution Resource Planning" in the R/3Library.

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