MRP calculates dependent material requirements from the master production schedule, bills of material and inventory data, while DRP plans inventory requirements through the distribution network.

Definition (ASCM) + plain-language translation

Material requirements planning calculates dependent-demand requirements using the master production schedule, bills of material and inventory data. Distribution requirements planning applies planning logic to inventory requirements across distribution locations.

Why it matters (service, cost, cash, risk)

• Service: material availability protects production and customer supply.

• Cost: correct timing reduces unnecessary inventory and expediting.

• Cash: materials planned too early tie up working capital.

• Risk: inaccurate data or lead times can create shortages even when the planning logic is sound.

How it shows up in real supply chains

• Finished-goods requirements are translated into component requirements through the bill of material.

• Gross requirements are netted against inventory and scheduled receipts.

• Planned orders are offset using lead times to determine when action must start.

• Distribution requirements are coordinated across stocking locations.

Root causes / drivers

• Master production schedule quantities and timing.

• Bill-of-material structure and quantities.

• Inventory balances and scheduled receipts.

• Lead times, lot-sizing rules and distribution-network requirements.

How to measure it (diagnostic + what good looks like)

• Material availability and shortage exceptions.

• Inventory levels versus plan.

• Planned-order release and receipt performance.

• Schedule or service disruption caused by material shortages.

How to improve it (playbook)

• Keep BOM, inventory and lead-time data accurate.

• Distinguish independent demand from dependent demand.

• Use gross-to-net logic consistently rather than forecasting components that should be calculated.

• Review exception messages and timing, not only total quantities.

SCOR DS lens (where to intervene)

• Plan: calculate material and inventory requirements.

• Source: release supply orders to external suppliers.

• Transform: provide the materials required by production.

• Fulfill: coordinate distribution inventory requirements.

CSCP exam cues (what gets tested)

• MRP uses the MPS, BOM and inventory data.

• Dependent demand is calculated rather than forecast.

• Gross-to-net logic considers on-hand inventory and scheduled receipts.

• Timing and lead-time offsetting are as important as quantity.

End2End practitioner notes

• The quality of MRP output depends directly on the quality of its inputs.

• A material can have both independent and dependent demand in different uses.

• Planning the correct quantity at the wrong time is still a planning failure.

Why it matters

MRP calculates dependent material requirements from the master production schedule, bills of material and inventory data, while DRP plans inventory requirements through the distribution network.

Core concepts

• MRP calculates dependent material requirements from the master production schedule, bills of material and inventory data, while DRP plans inventory requirements through the distribution network.

• Material requirements planning calculates dependent-demand requirements using the master production schedule, bills of material and inventory data. Distribution requirements planning applies planning logic to inventory requirements across distribution locations.

• Plain-language: determine exactly which materials are needed, in what quantities and when, while recognising what is already available or already scheduled to arrive.

• Service: material availability protects production and customer supply.

• Cost: correct timing reduces unnecessary inventory and expediting.

• Cash: materials planned too early tie up working capital.

Remember for the exam

• MRP = MPS + BOM + inventory data.

• Dependent demand is calculated, not forecast.

• Gross-to-net logic considers available inventory and scheduled receipts.

• Timing is as important as quantity in material planning.

Apply it

• Use this concept in a practical decision by asking: MRP calculates dependent material requirements from the master production schedule, bills of material and inventory data, while DRP plans inventory requirements through the distribution network.

• Then check the decision against this principle: Definition (ASCM) + plain-language translation

Exam trap

Watch for questions that test this distinction or principle: Planned orders are offset using lead times to determine when action must start.

Key takeaway

MRP calculates dependent material requirements from the master production schedule, bills of material and inventory data, while DRP plans inventory requirements through the distribution network.