NEW B.WORKSHOP OFFER: THE DDMRP
- By Régis
- 09/07/2020
Recurring problems with known symptoms
The Supply Chain is subjected to increasingly strong constraints, because of the flows growing complexity:
Shorter product life cycle
More pressure on deadlines and diversity in demand
Larger networks of actors covering wider geographical areas
The consequences are irrevocable:
Stock out
Delays
Changing and contradictory decisions
One solution: Demand Driven Material Requirements Planning (DDMRP)
DDMRP is a method of piloting multi-level, pull-flow planning and implementation aimed at protecting and promoting flows.
It enables the optimization of inventory levels to best meet market demand, by relying on stock buffers at strategic points in the BOMs and the distribution network.
DDMRP relies on firm demand rather than forecasts to generate and manage replenishment orders, whether for manufacturing, transfers or external purchases.
A Smart Combination
The method adds its innovations to elements of recognized concepts :
Material Requirements Planning (MRP)
Distribution Requirements Planning (DRP)
Lean Manufacturing
Theory of Constraints
Six Sigma
The 5 components of the DDMRP
Here are the 5 steps of a DDMRP implementation :
Position strategic decoupling points
Sizing the buffers
Dynamically adjust buffers
Planning by actual demand
Execute planned orders collaboratively and visually
Convincing results
The first results of the DDMRP show a refocusing of stock levels to a level closer to the optimal :
The virtuous management of these inventory levels induces important benefits on the whole Supply Chain, translated by an improvement of the key indicators (source: Demand Driven Institute):
Improvement of the service rate
97% – 100%
Time compression
80%
Inventory reduction
30% – 45%
Lower overall costs
Easy and intuitive to use
The DDMRP in JD Edwards
Our solution is natively integrated with JD Edwards and does not require any interfaces.
It allows you to quickly integrate DDMRP logic into your environment, with a reduced IT effort, in a logic of deployment per site.
Figure 1 – Article Profile
Figure 2 – Planning Priorities
Figure 3 – Stock Projection
Figure 4 – Buffer History