vSphere Replication can operate with target sites that have VMware vSphere® Storage DRS™ enabled.
Storage DRS (SDRS) can detect the data that vSphere Replication copies on the target site and can move replications without affecting the replication process. SDRS on the source site does not impact the replication process.
If there is SDRS enabled on the target site and the target datastore is included in a datastore cluster with SDRS enabled, SDRS communicates with vSphere Replication and does not automatically move the replica files from one datastore to another. vSphere Replication triggers a reconfigure replication that moves the replication data to the new datastore in the cluster. Initially, the replica files might be on one datastore and then they might split to several datastores or to a different datastore.
vSphere Replication manages all SDRS operations.