Don’t you love the way manufacturing produces new acronyms almost daily?
Well, get ready for another one because DDMRP (demand-driven material requirements planning) is here to stay. It is a lean manufacturing method that aids in the systematic removal of waste from the manufacturing value stream.
What is DDMRP?
DDMRP is a five-step process:
Step 5 is the biggest change for many companies—pulling in real time rather than preordering and overstocking as they had done in the past.
Because they are similar, understanding the difference between safety stock and buffers can be confusing. A safety stock is a reserve that is set up to prevent a stock out if something goes wrong. Safety stocks are static and typically adjusted and reviewed only a few times per year. Buffers are designed to be more dynamic—they vary as the system smooths out daily pulls and any fluctuations.
Benefits of using DDMRP:
You can see why more and more companies are taking a closer look at DDMRP.