Demand-Driven MRP (DDMRP): DDMRP is an innovative planning method that combines aspects of traditional MRP, Lean, and Six Sigma to strategically position inventory buffers to meet customer demand while minimizing lead times and variability.
Key Features of DDMRP:
Sales Order Forecasting: DDMRP uses demand-driven planning, focusing on actual customer orders and demand signals to prioritize production and inventory management.
Inventory Buffers: Strategically placed inventory buffers absorb variability in supply and demand, ensuring optimal inventory levels to meet customer needs without excess.
Implementation in SAP: SAP S/4HANA incorporates DDMRP capabilities, allowing businesses to implement this approach for more responsive and efficient supply chain management.
Reference:
SAP S/4HANA Demand-Driven MRP Guide
Demand Driven Institute Resources on DDMRP