What is the difference between DRP and MRP?

DRP and MRP are often confused because both deal with planning, but they operate on different halves of the Supply Chain and answer different questions.

DRP and MRP address different parts of the Supply Chain.

MRP (Material Requirements Planning) focuses on production planning. It determines which raw materials and components are needed to manufacture products.

DRP, on the other hand, focuses on distribution. It determines how finished products should be allocated across warehouses and distribution centers.

In many organizations, DRP works alongside:

• Demand Planning
• Inventory Optimization
• Supply Planning

Together these processes ensure that products are produced and distributed efficiently.

In practice, the distinction matters because the two systems optimize different trade-offs: MRP minimizes production disruption and component shortages, while DRP minimizes distribution imbalances and stockouts at the point of sale. Modern platforms like Flowlity integrate both views so that production and distribution stay synchronized as demand evolves across the network.