Final answer:
The statement is false. DRP is concerned with the distribution of finished goods, while MRP is used for planning the raw material requirements for production of these goods.
Step-by-step explanation:
The statement is false. DRP (Distribution Requirements Planning) actually relates to the planning of distribution requirements of finished goods, not raw materials. MRP (Material Requirements Planning), on the other hand, is primarily used for planning the production and purchasing schedules for the raw materials that are required to produce finished goods.
MRP is a system for calculating the materials and components needed to manufacture a product. It includes the scheduling of production processes, purchasing of materials, and overall inventory control. DRP is a system that determines the need to replenish stock at warehouses and distribution centers to fulfill customer orders without creating excessive inventories or experiencing shortages.
Therefore, MRP focuses on the front end of the production process (raw materials), while DRP deals with the tail end (finished goods).