Material Requirement Planning

[Audio] Material Requirement Planning. Material Requirement Planning.

Demand Driven Material Requirements Planning (DDMRP): Boosting Agility in Turbulent Times.

Traditional MRP: A Time-Tested, Yet Limited Approach.

Introducing DDMRP: A Paradigm Shift in Inventory Management.

The Five Pillars of DDMRP. Demand-Driven: Replenishment is based on actual demand signals, not forecasts. Replenishment: Orders are triggered by buffer levels, ensuring just-in-time availability. Buffers: Strategically placed buffers protect against lead time variability and demand fluctuations. Visibility: Real-time insights into inventory, lead times, and potential disruptions enable proactive decision-making. Collaboration: Continuous communication and information sharing across the supply chain is essential..

Benefits of Implementing DDMRP.

[image]. GearShift Embraces DDMRP. The Challenge: Inaccurate forecasts lead to overstocking of some models and understocking of others. Long lead times for key components create uncertainty and potential disruptions. Push-based production creates waste and inefficiencies. The DDMRP Solution: Identify and position buffers Calculate buffer profiles Determine replenishment signals Apply visibility planning Execute based on real-time demand.

The Results. Reduced inventory: GearShift reduces overall inventory by 15%, freeing up working capital and storage space. Improved service levels: Stockouts are significantly reduced, leading to happier customers and increased sales. Lower lead times: By focusing on critical components, GearShift decreases lead times by 10%, improving agility. Increased agility: The company can now adapt to changes in demand quickly and efficiently, minimizing disruptions..