Which planning method determines the need to replenish inventory at branch warehouses; time-phased order point exploded via MRP logic to become gross requirements on the supplying source? In multilevel networks, this process can continue down to master production schedules.

• A. Drum schedule
• B. EOQ
• C. Efficiency
• D. Distribution requirements planning (DRP)

Answer: (D)

DRP, or Distribution Requirements Planning, is the method designed to plan replenishment for inventories at distribution nodes such as branch warehouses. It takes downstream demand (from branches or retailers) and converts it into a time-phased set of needs at each distribution center. Those needs are then exploded back up the network using MRP logic to form gross requirements at the supplying sources—whether those sources are other distribution centers, plants, or the factory floor. In complex, multi-level networks, this signal can propagate all the way to the master production schedule, guiding production and procurement so the right quantities arrive where and when they’re needed. This fits the description of determining replenishment needs at branch warehouses and using time-phased orders exploded via MRP logic across the supply chain.