Which of the following statements is true with regard to DRP?
A)DRP is a push system because we start with the earliest stage in production and push products to the customer.
B)DRP is a pull system because demand at the retail level pulls inventory and shipments through the supply chain.
C)DRP is a push system because we make extensive use of demand forecasts to determine our capacity requirement.
D)DRP is a pull system because we start with the earliest stage in production.

Question

Quizplus · Accepted Answer

DRP is a pull system because it uses demand at the retail level to pull inventory and shipments through the supply chain. It is not a push system because it does not start with the earliest stage in production and push products to the customer. While demand forecasts may be used in DRP, this does not make it a push system.

Which of the Following Statements Is True with Regard to DRP