(CPIM) Certified in Planning and Inventory Management Practice Test
CPIM - Certified in Planning and Inventory Management Distribution Planning Questions and Answers
Which of the following best describes the core logic of Distribution Requirements Planning (DRP)?
Select your answer
A
It determines replenishment needs for downstream locations based on historical shipments from the central warehouse.
B
It calculates future requirements for distribution centers by applying MRP principles, starting from the end-customer forecast and working up the supply chain.
C
It allocates available finished goods inventory from the manufacturing plant based on the Master Production Schedule (MPS) capacity.
D
It generates an optimal transportation schedule to minimize freight costs between distribution echelons.
Hint