Demand Driven Material Requirements Planning is an innovative multi-echelon pull methodology to plan inventories and materials. It enables a company to build more closely to actual market requirements and promotes better and quicker decisions and actions at the planning and execution level. DDMRP was introduced to the world in the book Orlicky’s Material Requirements Planning, Third Revised Edition by Carol Ptak and Chad Smith.
The FIVE COMPONENTS of DDMRP
Demand Driven Material Requirements Planning has five sequential components. This figure illustrates these components, their sequence and how they relate to the mantra, “position, protect and pull.” The first three components essentially define the initial and evolving configuration of a demand driven material requirements planning model. The final two elements define the day-to-day operation of the method. DDMRP is most common the start of an organization’s transformation to a Demand Driven Adaptive Enterprise.