It’s no longer ‘one size fits all’
Segment & Strategize
Unlike the ‘one size fits all’ approach of forecast push MPS/MRP, the Demand-Driven SCM approach recommends use of the most appropriate replenishment technique for the pattern of demand at each inventory position.
Use the demand volume & variability matrix
This means that different replenishment rules might be used for different items at different positions within the supply chain – but as long as the inventory targets are set correctly the entire supply chain will operate in a synchronised and seamless manner. The demand patterns are stratified according to the volume average and standardised variability.