Distribution Requirements Planning (DRP) is a supply chain management process used to determine the necessary resources and quantities required to ensure a product or service is delivered to customers in a timely manner. It involves forecasting customer demand, analyzing inventory levels, and creating an actionable plan to meet that demand. DRP also considers factors such as distribution center capacities, inventory shrinkage, transportation costs, and lead times so that the optimal inventory order and delivery can be determined. By implementing DRP, businesses can reduce costs associated with inventory management and increase customer satisfaction.