MRP vs DRP in Manufacturing and Production

6/9/18 6:21 PM

Materials resource planning (MRP) and distribution requirements planning (DRP) are two vital components to the manufacturing industry. Both of these planning methods are beneficial to manufacturing operations that are trying to optimize production and enhance overall efficiency.

DRP vs MRPThey both have a similar goal - moving materials or goods throughout the supply chain in an efficient manner in the most cost-effective fashion. As these two terms are often reiterated throughout the industry, there may be some confusion as to how the two terms correlate and how they differ.

What is MRP

Materials resource planning (MRP) is a production system that pertains to inventory planning and control. As MRP is used in the manufacturing industry, it is mainly concerned with the ordering of raw materials through demand forecasting - meaning that this is more of a push control of inventory. Demand forecasting is enabled throughout the operation and allows for an insight into how much inventory is needed, which then enables a direct response to the system that orders the correct amount of materials that will effectively fulfill the order.

MRP is a about being a step ahead of production and preparing for swift demand changes. Utilization of accurate data and systematic resources will further enable the production facility to be able to further optimize production and order materials in a waste minimized, more efficient manner.

What is DRP

Distribution requirements planning (DRP) is the process in which goods are delivered in a more efficient manner. These include considering the aspects of establishing a good, quantity of the good, and the direct location that it is needed to arrive at in a given time. Distribution requirements planning will benefit the operation as a whole through effective and cost-aware distribution, which allows for production facilities to be able to focus elsewhere in the manufacturing operation.

The pull or push method is utilized by DRP distribution, with pull and push differing from each other. The pull method includes goods shifting upward throughout the system and obtaining customer order achievement. Although management controls the amount of goods available, distribution inventory management is challenging because all orders are considered new to the supplying location as the demand is flowing upward.

MRP and DRP Correlation

As MRP focuses more on a single location, DRP focuses more on the control of the materials among the various locations. These two systems operate together and evaluate the supply chain in a variety of ways:

  • Modification of Orders
  • Receipt Schedules
  • Inventory Balances
  • Transportation Times

These evaluations promote insight within the supply chain and allow for enhanced distribution and efficient ordering of materials that aid production facilities through coming closer to the overall efficiency point within the operation.

APS with MRP and DRP

Advanced planning and scheduling (APS) systems enable capabilities that pertain to MRP and DRP. APS systems are designed to optimize the production scheduling process, which correlates with the material planning and distribution process. Advanced planning and scheduling offer various other benefits and capabilities such as:

  • Impact analysis
  • Visual Schedule Ordering
  • Flexible Alert System

Utilization of an advanced planning and scheduling system will encourage intuition in the supply chain and find areas where the manufacturing operation is thriving and areas where the operation can be improved.

Related Integration with Systems Video 

 APS Resources

Topics: Material, Lean Manufacturing, ERP, MRP, food manufacturing, Material Requirement Planning, Smart Factory 4.0, Industry 4.0, Distribution Requirements Planning, materials planning, Industry Trends, Industrial Distribution


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