Certified Supply Chain Professional (CSCP) Practice Exam

What type of system is DRP considered to be?

1. Completely push-based

2. A hybrid with both push and pull elements

3. Totally pull-based

4. Flexible with no set strategy

The correct answer is: A hybrid with both push and pull elements

Distribution Requirements Planning (DRP) is considered to be a hybrid system because it incorporates both push and pull elements in its approach. In a push system, production and distribution decisions are based on forecasts; products are pushed through the supply chain based on demand estimates. Conversely, a pull system relies on actual demand and consumption to drive the supply chain, allowing goods to be pulled through based on real-time needs. DRP effectively integrates these concepts by using forecasts to determine initial inventory levels and scheduling needs (the push component), while also allowing for adjustments based on actual demand data (the pull component). This combination enhances flexibility and responsiveness in the supply chain, enabling organizations to better meet customer requirements while managing inventory levels effectively. By blending these methodologies, DRP helps optimize resource allocation and service levels. Other types of systems, such as completely push-based or totally pull-based, would not account for the dynamic interactions and adjustments that DRP facilitates. The label of "flexible with no set strategy" does not accurately describe DRP's structured approach to balancing demand and supply forecasts.