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DISTRIBUTION REQUIREMENTS PLANNING 387 Supply Chain DRP The functioning of DRP in a supply chain environment can be clearly demonstrated by driving the same demand and supply conditions detailed in Figure 8.8 through the DRP process. After the dependent supply warehouses in New York, Kansas City, and Los Angeles have been linked through the BOD to the central supplying warehouse in Chicago, DRP logic will start timephasing supply and demand by going to the warehouse at the lowest level in the BOD structure and performing the gross-to-net requirements calculation. As the process at each level in the structure is completed, the net requirements in the form of planned resupply orders are input by due date into the gross requirements buckets of the supplying warehouse, and the process begins again on that level. The DRP processor is completed when all levels in the BOD structure have been reviewed.
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