DRP: A Novel Approach for Requirement
Planning in Supply Chain Management
Abstract— Managing the inventory of heterogeneous products
among the different companies across the globe is a crucial task
for any product based company. The objective of new system
DRP is to control the inventory at the customer site (VMI) to the
lowest permissible level defined as Minimum Inventory. This is
achieved by creating a Supply Chain Model that contains a
network of Demand Sites and Supply Sites along with the transit
time and other parameters for each product consumed by the
Customer. This model is used to determine availability (Stock,
FABOUTS, VMI and GIT) at the Supply & Demand site and the
Demand at the Demand Site; and use this information to
generate replenishment plan and trigger shipments just in time
(JIT) such that there is no stock out at the customer site nor
there is inventory build up at the customer site. Minimum and
Maximum inventory is decided by a complex business function
and is an agreement between company and the Customer. The
System also provides an interface to the user to define the Supply
Chain Model and its various entities and also to validate the
output and make necessary changes before triggering subsequent
operations like Shipment generation.