DDMRP: A New Approach to Supply Chain Planning

Demand Driven Material Requirements Planning (DDMRP) is gaining traction as an alternative to traditional supply chain planning approaches. Here's what you need to know.

DDMRP is a formal multi-echelon planning and execution method developed to protect and promote the flow of relevant information and materials in complex and volatile supply chains.

The five components of DDMRP are: Strategic Inventory Positioning, Buffer Profiles and Levels, Dynamic Adjustments, Demand Driven Planning, and Highly Visible and Collaborative Execution.

The approach is particularly suited to complex, volatile supply chains where traditional MRP-based approaches struggle. By positioning strategically placed inventory buffers, DDMRP can significantly improve both service levels and inventory turns.

sofco's planning suite supports DDMRP approaches alongside traditional planning methodologies, giving clients the flexibility to choose the approach that best fits their supply chain characteristics.