Capterra Glossary
Demand-driven Material Requirements Planning (DDMRP)
Demand-driven material requirements planning (DDMRP) is a comprehensive method for optimizing operational supply-chain planning and execution. DDMRP replaces the use of the conventional, forecast-driven MRP and instead considers the actual sales orders. DDMRP methodology combines relevant elements of traditional MRP and distribution requirements planning (DRP) with pull-based approaches and signals of Lean and the theory of constraints. The complete planning and execution methodology of DDMRP includes progression through these components: strategic inventory positioning, buffer profiles and levels, dynamic adjustments, demand-driven planning, and visible and collaborative execution.
What Small and Midsize Businesses Need to Know About Demand-driven Material Requirements Planning (DDMRP)
DDMRP deals with mitigating changes and absorbing possible shortages of supply in the manufacturing process. Supply shortages are inevitable at some point, even in SMBs. Businesses use DDMRP to control replenishment and manage supply better.
Related Terms
- Enterprise Resource Planning (ERP)
- Procurement
- Total Cost of Ownership (TCO)
- Vendor
- Supply Chain Planning (SCP)
- Telematics
- Senpai
- Vendor Management
- Value-Added Reseller (VAR)
- Bill of Materials (BOM)
- Supply Chain
- Smart Factory
- Scanner
- SCADA (Supervisory Control and Data Acquisition)
- Radio-frequency Identification (RFID)