DDMRP: presentation of a new solution of stock management and master production scheduling

Abstract

Demand Driven Material Requirements Planning (DDMRP) is a new solution of stock management and master production scheduling invented in the years 2010s. It is constructed on the main principles of Material Requirements Planning (MRP), Distribution Requirements Planning (DRP), Lean Manufacturing, Theory of Constraint (TOC) and Six Sigma. It is based on four actions: position, protect, pull and adapt. Position the buffer at the strategic points, protect them with stock and decoupled lead time, pull the demand when the buffers need it and adapt to the evolution of the environment. DDMRP allows the purchase team to prioritize their work thanks to a three color-code management (green, yellow and red) based on a net flow equation that includes the stock on-hand, the supplies on-going and the future spikes of demand that might harm the buffer. The objective of this master thesis is to present the method, describe the five steps of implementation and discuss its benefits and limitations.