What is distribution requirements planning in SAP SCM-APO-SPP - Service Parts Planning?

SAP Term: distribution requirements planning

• Component: SCM-APO-SPP

• Component Name: Service Parts Planning

• Description: Organizes replenishment planning within a bill of distribution BOD. Based on forecasted demand, the stock at locations within a BOD, and scheduling agreements with suppliers, distribution requirements planning DRP creates stock transport requisitions, scheduling agreement delivery schedule lines, and purchase requisitions.

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• Key Concepts: 
  Distribution Requirements Planning (DRP) is a component of SAP's Supply Chain Management (SCM) Advanced Planner and Optimizer (APO) Service Parts Planning (SPP) module. It is used to plan and manage the distribution of goods from suppliers to customers. DRP helps to ensure that the right products are delivered to the right customers at the right time. 
  
  How to use it: 
  DRP can be used to plan and manage the distribution of goods from suppliers to customers. It can be used to create a forecast of customer demand, which can then be used to determine the necessary inventory levels and delivery schedules. DRP also helps to identify potential supply chain issues, such as stockouts or overstocks, and can be used to optimize inventory levels and delivery schedules. 
  
  Tips & Tricks: 
  When using DRP, it is important to ensure that the data used for forecasting is accurate and up-to-date. Additionally, it is important to regularly review and adjust the forecast based on changes in customer demand or other factors. Finally, it is important to ensure that the inventory levels and delivery schedules are optimized for maximum efficiency. 
  
  Related Information: 
  DRP is part of SAP's SCM-APO-SPP module, which also includes Demand Planning, Supply Network Planning, Production Planning/Detailed Scheduling, and Global Available-to-Promise. Additionally, DRP can be integrated with other SAP modules such as Materials Management (MM), Sales & Distribution (SD), and Warehouse Management (WM).