DDMRP is a methodology for planning, modeling and supply chain management
Demand Driven Material Requirements Planning (DDMRP) is an innovative supply chain modeling, planning, and management methodology for protecting and ensuring the information and materials flow.
The model leverages the best of MRP, DRP, Lean, Theory of Constraints, and Six Sigma to provide a new method to model, plan, execute and manage your supply chains that are more relevant today.
For years, supply chain managers have struggled with a major controversy within the system – how to strike a balance between two indicators:
- inventory levels optimization
- the service level increasing
The conflict is that the higher the service level, the more inventory we need to keep. But the more inventory we keep, the more working capital we have frozen, and this lead to an ROI decrease.
So, in search of a balance, the logisticians spend a lot of effort, either increasing inventory to improve the service level or reducing inventory levels to free up finances.
The main task of DDMRP is to optimize stocks and increase the service level at the same time, while the methodology allows you to reduce the dependence of production planning on forecasting.
This method was developed by the Demand Driven Institute and is now approved by ASCM/APICS.
Planning and inventory management in production and distribution
We chose DDMRP, because this methodology absorbed the best experience of world practices in supply chain management, united by a block of innovations
The participation of the team at all stages of the implementation allowed us to easily use DDMRP in production. Sales and inventory results speak for themselves.
The results were made possible thanks to a team of professionals that tirelessly moves along the intended course, learns and achieves its goals. We are open to changes and revisions of the principles of inventory management, and decision-making aimed at improving the efficiency of the company