Demand-Driven MRP (DDMRP)
The Demand Driven Institute’s process framework
Position, Protect & Pull
Demand-Driven Material Requirements Planning (DDMRP) is a method to model, plan and manage supply chains to protect and promote the flow of relevant information and materials.
Protect & Promote Flow
DDMRP uses strategic decoupling points to drive supply order generation and management throughout a supply chain.
- Strategic decoupling: De-coupling the supply chain creates independence between processes or entities and is the only way to stop the bullwhip effect, mitigate variability and compress lead times.
- Buffer sizing: Buffer sizing is the shock absorber to ease both supply and demand variability and reduce or eliminate the bullwhip effect.
- Dynamic adjustments: A dynamic adjustment of the buffer profiles further calms the supply chain and smooths operating for all variabilities within a set period.
- Demand-driven planning: Demand-driving planning comprises generating supply orders by evaluating actual inventory, stock that has been ordered but not received, and qualified sales order demand.
- Visible and collaborative execution: When users have visibility into inventory through alerts that track usage, ordering lead times and material delivery can be synchronized.