Demand Driven MRP

Demand Driven Material Requirements Planning (DDMRP) is a method used by businesses to manage inventory and production more effectively. Instead of relying solely on forecasts, DDMRP adjusts inventory levels based on actual customer demand and consumption rates. It strategically places buffers or safety stocks at key points in the supply chain to respond quickly to changes, reducing both excess stock and shortages. This approach helps companies be more agile, ensuring products are available when needed while minimizing waste and inefficiency. Overall, DDMRP aligns inventory closely with real-time demand, improving responsiveness and service levels.