Demand Driven MRP removes the overhead of perpetually adjusting order recommendations while dispelling the myth that you just need more inventory to maintain higher service levels. Planning in an uncertain world requires a radically different approach to traditional MRP methods that institutionalize forecast errors and order volatility. The simplicity of the Buffer Zone concept underlies a strong analytical and rigorous approach to material planning. Strategically positioned inventory is designed to decouple supply and demand in order to reduce variability whilst at the same time compressing lead times. DDMRP answers the question all finance and operations managers want to know: How to get the right stock in the right place at the right time
DDMRP - Transforming material planning into a competitive tool to deliver more in demanding markets
“Demand Driven Material Requirements Planning (DDMRP) is a practical, proven, and emerging method for supply chain planning and execution that effectively brings the 1950s concept into the modem era.”
Carol Ptak and Chad Smith - Creators of DDMRP
What Is DDMRP?
The foundation of DDMRP is based upon the connection between the creation, protection, and acceleration of the flow of relevant materials and information to drive returns on asset performance. Using an innovative multi-echelon “Position, Protect, and Pull” methodology, DDMRP helps plan and manage inventories and materials in today’s more complex supply scenarios, with attention being paid to ownership, the market, engineering, sales, and the supply base. This method enables a company to decouple forecast error from supply order generation and build in line to actual market requirements, and promotes better and quicker decisions and actions at the planning and execution level. DDMRP is already in use by MAJOR Global 1000 companies.”
For full details on the principles of DDMRP also see Demand Driven Material Requirements Planning (Ptak and Smith, Industrial Press, 2016)