Your Supply Chain driven by the customer demand
DDMRP deals with mitigating variability and absorbing the stress coming from customers, suppliers, even from inside the company with some buffers.
“Demand Driven Material Requirements Planning is a formal multi-echelon planning and execution method to protect and promote the flow of relevant information through the establishment and management of strategically placed decoupling point stock buffers. DDMRP combines some of the still relevant aspects of Material Requirements Planning (MRP) and Distribution Requirements Planning (DRP) with the pull and visibility emphases found in Lean and the Theory of Constraints and the variability reduction emphasis of Six Sigma. “ Demand Driven Institute
DDMRP: SAP S/4 HANA or IBP?
With DDMRP, you daily readjust your buffer dimensions using very simple rule and understand by all. DDMRP is implemented in 5 steps.
- Strategic Inventory positioning: where the decoupling points are placed.
- Buffer profiles and levels: define the amount of protection at those decoupling points.
- Dynamic adjustments: how that level of protection flexes up or down based on operating parameters, market changes and/or planned or known future events.
- Demand-driven planning: which supply orders (purchase orders, manufacturing orders and stock transfer orders) are generated.
- Visible and collaborative execution: which DDMRP system manages open supply orders
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