Offerings
Demand Driven Material Requirements Planning (DDMRP)
Optimise Inventory, streamline supply chains and reduce stockouts for better performance
What is Demand Driven Material Requirements Planning (DDMRP)
Demand Driven Material Requirements Planning (DDMRP) is a comprehensive multi-echelon planning and execution methodology designed to safeguard and enhance the flow of critical information in supply chain environments characterised by volatility, uncertainty, complexity, and ambiguity (VUCA). Developed over two decades of research and practical application across various industrial sectors, DDMRP addresses the challenges posed by conventional MRP systems in today’s rapidly evolving supply chain landscape.
At its core, DDMRP strategically positions and sizes decoupling buffer stocks to effectively manage customer lead times, mitigate variability, and improve the flow of products and information throughout the entire supply chain network. By adopting a flow-based operating model instead of the traditional cost-focused approach used by many businesses, DDMRP optimises supply chain operations.
This methodology minimises the bullwhip effect by synchronising the movement of materials and information, ensuring businesses can meet demand efficiently while maintaining resilience in their supply chain operations.
DDMRP: The Fusion of Three Key Industry Drivers
Demand Driven Material Requirements Planning (DDMRP) brings together three fundamental principles from leading industry methodologies:
- Material Requirements Planning (MRP) and Distribution Requirements Planning (DRP): DDMRP builds on the foundational elements of MRP and DRP, integrating their structured planning approaches to meet material and distribution demands effectively.
- Pull and Visibility Focus from Lean and Theory of Constraints: Emphasising a pull-based approach, DDMRP aligns production and inventory with actual demand, enhancing visibility and responsiveness across the supply chain.
- Variability Reduction from Six Sigma: By incorporating Six Sigma principles, DDMRP addresses variability, aiming to stabilise processes and ensure consistent flow and performance.
This combination empowers organisations to achieve operational excellence in complex and dynamic supply chain environments.