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Which of the following is NOT an input for a DRP system?
Demand forecast from distribution centers
Safety stock levels
Supplier's annual revenue
Accurate lead time information
The correct answer is: Supplier's annual revenue
A Distribution Requirements Planning (DRP) system focuses on managing inventory levels and ensuring that products are available at the right locations in response to customer demand. The inputs to a DRP system typically include components that directly impact inventory management and distribution logistics. Demand forecasts from distribution centers are crucial as they help predict the amount of product that will be required to meet customer needs over a specific period. Safety stock levels are important inputs as they provide a buffer against variability in demand and supply, helping to maintain service levels. Accurate lead time information is also critical, as it helps the DRP system determine when to reorder stock to ensure it arrives in time to meet anticipated demand. In contrast, a supplier's annual revenue is not a relevant input for a DRP system. While it may provide insights into a supplier's overall financial health or ability to fulfill orders, it does not directly influence the planning and logistics processes that DRP systems are designed to manage. Therefore, this aspect does not contribute to the operational requirements needed for effective decision-making within the DRP framework.