Most supply chains are suffering from excessive inventories, capacity under- or over-utilization and struggle to meet promised service levels. The reason for this is the reliance on demand forecasts that cause inventory levels to be unbalanced and planners to spend much of their time changing and adjusting schedules to avoid backorders. This fire-fighting causes ineffective capacity management, long lead-times, high inventories and instable operations.
Demand-Driven Material Requirements Planning (DDMRP) is a method to model, plan and manage supply chains to protect and promote the flow of relevant information and materials. DDMRP uses strategic decoupling points to drive supply order generation and management throughout a supply chain. DDMRP ensures that companies make what can and will be sold
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