Final answer:
Inventory requirements in a DRP system are typically calculated based on forecasted sales, which are used to predict customer demand and plan production and inventory levels.
Step-by-step explanation:
Inventory requirements of a manufacturer that is part of a distribution requirements planning (DRP) system are typically calculated from forecasted sales. This approach aligns with the principles of supply chain management, where the production scheduling and inventory control are driven by predicted customer demand. DRP systems tend to utilize sales forecasts to determine the volume of goods that need to be produced and kept in inventory.
The costs of production, the prices of related goods in production, sellers' expectations, and the number of sellers are factors that can influence supply and demand dynamics in a broader market context. These factors are important in determining the overall market supply curve as shown in supply and demand graphs, but when it comes to DRP systems, the primary focus is on meeting the customer demand as predicted by forecasted sales.