Distribution Logistics — An Appraisal of Alternative Methods

In recent years, two distinct methods have emerged for the replenishment of distribution sites from a central manufacturing source. At the 1985 annual conference in Philadelphia of the American Production & Inventory Control Society, the two methods were each reviewed by the industrial consultants credited with their development: Robert Goodell Brown explained his method of “Fair Shares” allocation, while André Martin dealt with “Distribution Resource Planning” (DRP). The two approaches are described in a simply way and the strong and weak points of their practical application are summarised. Most companies would be better off using fair shares, a few using DRP, but all companies must understand both if they are to be able to make the right selection in their own circumstances.