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