DDMRP (Demand Driven Material Requirement Planning) is a planning method used both for supply planning and execution control. Where by defining stock positions and stocking levels in a dynamic way; it generates supply events according to the sales order of the day plus qualified sales spikes.
So why the buzz and hype?
DDMRP is not a buzzword, it is not a marketing spin on an existing concept. The buzz comes from the unique approach to modelling supply chains and the process of triggering a supply event from a demand signal. With DDMRP a supply chain is not a chain, it is a network of networks. The networks within a network are decoupled, meaning there is no immediate and direct action and reaction between them. The flow of goods is buffered in strategically located positions with dynamically updated targets. The proverbial bullwhip impact is thereby controlled.
The value is not just inventory and service levels
The incremental value of any concept or technology is only in its comparison to a baseline or existing accepted norm. DDMRP screams volumes on the value spectrum when compared to traditional MRP and iterative DRP. A tangible reduction in obsolete and excess inventory in addition to a proven track record of customer service improvements. Of course, reduced inventory and higher service levels are value claims not unique to DDMRP.
So why is DDMRP different?
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The DynaSys solution
DynaSys DSCP (Demand & Supply Chain Planning) has a proven history of rapid adoption of technology and process to empower its customer base. Consequently DDMRP is a natural candidate for inclusion within the DynaSys DSCP suite. The indisputable benefits of DDMRP such as ease of use and a stronger focus on "real" demand have resonated with DynaSys / QAD 2 customers. DDMRP is a tangible differentiation for DynaSys DSCP, and provides DynaSys / QAD customers a unique value.
DynaSys DSCP has embraced all facets of the Demand Driven Operating Model of which DDMRP is a key component. The solution supports the entirety of the five steps described above. It uses a planning data model extension purpose built for DDMRP. This includes all of DDMRP specific terminology and algorithms. It includes the colour coding, alerts, and warnings as prescribed by the Demand Driven Institute (DDI).