What is distribution planning?

Also known as DRP requirements planning, distribution planning is a common strategy that helps create a schedule for ordering in the overall processing chain management process. The general idea of ​​distribution planning is to use relevant information to determine when and in what quantities it is necessary to order certain items to maintain supplies that is able to make production in order to make the most advantageous pace without binding the company's resources to maintain too much inventory. In a way, planning distribution is a valuable tool in terms of maintaining a slim inventory, which ensures that there is always enough raw materials at hand, but there is no need to store and pay taxes on a huge amount of raw materials.

A number of factors are considered part of the effective distribution planning process. Usually this process will require the use of historical data to determine how many units gipologist out is required to allow the company to function efficiently in a given timea period like a calendar month. Given how many suppliers from preliminary warnings must process the order and deliver the required quantity, it is possible to create an order schedule to ensure that the amount necessary to successful period is at hand, and it is unlikely that these requirements will occur before delivery of a different command.

In order to achieve this balance, distribution planning normally looks at the inventory that is at the end of the period at hand and determines how long this current inventory will last. From there are orders that allow companies to expand this existing inventory with a sufficient number of other units to get through the upcoming period, taking into account the delay between placing the order and the first delivery date. If the use of an item does not necessarily be consistent from one period to another, cooperation with sections and SUPe is importantThe use of the project in the coming period, because the frequency and the volume of orders can be adjusted to meet those expected needs. By assessing the quantity remaining at the end of the period, distribution planning for the next period can be re -changing and maintaining stock costs as low as possible.

Effective distribution planning can save a large amount of money during the surgical year. Stocking such as raw materials, equipment and even office supplies, as low as possible, and at the same time make sure there is always enough material to assess to support production efforts, avoid the need to rent or rent additional storage and minimize the amount of taxes that must be paid to local and national tax agencies. This is reflected in more net profits that the company can use for expansion or other desired tasks.