Demand Driven Material Replenishment Planning (DDMRP) has been called a lot of things—from just another MRP master data setting to a silver bullet that will magically align supply and demand to make the entire supply chain perform seamlessly.
But what is it really? Actually, DDMRP is a proven and effective multi-echelon planning and execution method for how to run replenishment based on sound flow-based principles. As such, it offers a whole new way of conducting business, providing a step-by step decision support structure that boosts planning and execution. From bringing in raw materials to support production to prioritizing what and when to produce by defining where we are stocking our inventory and at what levels, DDMRP redefines how we manage the supply chain.
Originating from the Demand Driven Institute and governed by the Demand Driven Institute (DDI), DDMRP combines the power of the Material Requirements Planning (MRP) and Distribution Requirements Planning (DRP) with the demand driven pull and clear status and decision framework via visual cues. These cues are found in lean and the constraint identification, protection, and subordination principles of Theory of Constraints. The focus on performance variability reduction is derived from Six Sigma.