In my last post, I talked briefly about the benefits of being demand driven using Demand Driven Material Requirements Planning (DDMRP): lower inventory levels and increased service levels.
You may be thinking, “Yeah, Ivan, that all sounds good, but isn’t that what other methodologies like Lean Manufacturing were supposed to do? What’s the difference here?”
If so, you’d be right. DDMRP exploits some of the principles found in other methodologies, but it also modifies them and arranges them into a consistent, organized, and easily executable process. The first key principle, and the one that separates DDMRP from many other approaches, is that of decoupling stock buffers.
