DDMRP

Demand-Driven Material Requirements Planning (DDMRP) refers to a customer- or demand-driven approach to material planning within the supply chain. In this demand-oriented approach, the supply chain no longer relies on forecasts but focuses on actual orders placed, plus buffers. The buffer or various buffers along the supply chain are intended to cushion possible fluctuations in demand and thus compensate for potential errors in the forecasts.

According to the pull principle, each station within the supply chain is supplied with exactly the amount that is actually needed. Thanks to appropriate software, a stock of goods that is always adjusted to demand is maintained. If a critical quantity is undershot, a reorder is automatically triggered, ensuring that the ability to deliver is restored for future orders.

DDMRP aims to achieve good delivery capability while simultaneously realizing short lead times, increasing agility within the supply chain, and protecting companies from excessive costs due to oversized inventories.