Operational Technologies
Demand Driven Material Requirements Planning (DDMRP)
Optimise Inventory, streamline supply chains and reduce stockouts for better performance
A comprehensive multi-echelon planning and execution methodology for supply chain environments characterised by volatility, uncertainty, complexity and ambiguity.
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The Methodology
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 that conventional MRP systems face within contemporary supply chains.
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.
The methodology adopts a flow-based operating model instead of the traditional cost-focused approach, and minimises the bullwhip effect by synchronising the movement of materials and information.
What it addresses
- Volatility
- Uncertainty
- Complexity
- Ambiguity
- Customer lead times
- Variability
- The bullwhip effect
Foundation Principles
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.”
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Contact us for more information about Demand Driven Material Requirements Planning and how it would apply to your supply chain.