Application of the Distribution Requirement Planning (DRP) Method in Optimizing Product Distribution at PT. XYZ

Penerapan Metode Distribution Requirment Planning (DRP) dalam Optimalisasi Distribusi Produk di PT. XYZ

Abstract

General Background The food industry relies on highly coordinated supply chain mechanisms to deliver perishable commodities seamlessly to diverse consumer markets. Specific Background Frozen food distributors face continuous logistical challenges balancing dynamic regional demands against fixed warehouse capacities and transportation budgets. Knowledge Gap While standard inventory systems address static stock management, few frameworks actively integrate forecasting algorithms with quantitative reordering metrics to systematically minimize multi-echelon logistical expenditures. Aims This research optimizes the distribution scheduling and inventory parameters for dim sum products across the Surabaya and Malang centers using the Distribution Requirement Planning methodology. Results Exponential Smoothing forecasting yielded high accuracy, showing Mean Absolute Percentage Errors of 6.772 percent and 7.841 percent for the respective regions. Utilizing these projections, the Economic Order Quantity was calculated at 544 cartons for Surabaya and 491 cartons for Malang, accompanied by safety stocks of 285 and 196 cartons. Implementing these metrics restructured the replenishment schedule, reducing total annual distribution expenditures from IDR 371,638,400 to IDR 348,614,480. Novelty This study mathematically validates the transition from conventional dispatching to a predictive replenishment model utilizing integrated forecasting and precise lot-sizing computations. Implications Adopting this calculated logistical framework strictly eliminates surplus holding expenses and prevents regional stockouts, resulting in a 6.20 percent total cost reduction across the supply network.

DOCX+ 4

Highlights:

• Exponential Smoothing integrated with Distribution Requirement Planning effectively restructures multi-echelon inventory replenishment protocols.

• The Economic Order Quantity calculations established optimal delivery lot sizes of 544 and 491 cartons for the regional centers.

• The predictive logistical framework successfully reduced total annual distribution expenditures by 6.20 percent across the supply network.

Keywords: Distribution Requirement Planning, Economic Order Quantity, Supply Chain Management, Exponential Smoothing, Cost Minimization