Demand Driven DRP: Assessment of a New Approach to Distribution

The distribution of goods from suppliers to customers plays an important role in the supply chain. In this paper, the approach of Demand Driven Distribution Resource Planning (DDDRP) is proposed in order to optimize the distribution flow in the supply chain. The purpose is to manage all sources of variability in operational, management, supply and demand , while improving the traditional methods of Distribution Resource Planning (DRP). First, a review of the literature on the impact of variability upon distribution flow and the solutions proposed in this context is presented. Then, a general study of distribution industries is investigated in order to apply the DDDRP method; we show the buffers positioning in the distribution network, and the profile and levels of the buffers. After the dynamic adjustment, the Demand Driven Planning and the execution based on the net flow equation are presented. The results discuss the approach and the steps of implementing it in the distribution industry.