Demand-Driven Material Requirements Planning (DDMRP)

Demand-Driven Material Requirements Planning (DDMRP) is a method used by companies to manage inventory and supply chains more effectively. It combines traditional planning with real-time demand signals, allowing organizations to respond quickly to customer needs while reducing excess stock. DDMRP uses strategic buffers—slightly larger inventory buffers at key points—to ensure materials are available when needed, without overstocking. This approach improves order fulfillment, reduces waste, and increases agility by aligning inventory levels closely with actual demand, enabling a more responsive and efficient supply chain management process.