What does DRP stand for in Supply Chain management?

DRP stands for Distribution Requirements Planning. It is a Supply Chain planning method used to determine how much inventory should be distributed, when products should be replenished, and where stock should be located across a distribution network of warehouses, regional hubs, and stores.

The underlying logic is to translate expected customer demand into a coherent plan of inter-site transfers and replenishment orders, so that stock sits as close as possible to the point of sale without creating excess at any single node.

DRP ensures that inventory flows between warehouses, distribution centers, and stores are synchronized with demand — avoiding the classic pattern where one regional hub is stocked out while another is overstocked with the same SKU.