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DDMRP Calculations and Data

  • February 13, 2025
  • 3 replies
  • 96 views

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Can anyone confirm the detail around the the calculations relating to DDMRP, mainly the Calculated ADU and background data that is used for the calculations? 

I understand the set up and what DDMRP does, however it is not 100% clear on the following;

  1. When running the Calculate Historical Average Daily Usage, does this calculate based on the Site Distribution Calendar? If a business only operates Mon-Fri, and they have a Distribution Calendar Schedule that has 7 days but working time on Sat and Sunday = 0 min, is this factored in? If this calculates using calendar days, surely this will result in a lower ADU than actual, where the business only operates 5 days in every 7?
  2. Is there a way to view the Standard Deviation Calculations and how the Std Dev Issues in Lead Time is calculated? Same question for Avg No Of Issues In Lead Time? If a business is not getting ADU figures that do not seem right, how can these be analysed quickly and effectively?
  3. For Avg No Of Issues In Lead Time, what does “The number of issues made within a lead time “ mean? Is this calculating the number of issues (instances of parts being issued, not quantities issued?) in periods/buckets equal to the unprotected lead-time for the part? If this is working in buckets of lead-time, again, what effect does the Site calendar have on these figures?
  4. How is the Ave Qty per Issue calculated? Is this simply the total issued over the horizon, multiplied by the number of instances of parts being issued?
  5. For the Forecasted ADU, does the same basis apply, i.e. are the calculations based on the working days, or the calendar days?

I have extracted data and performed analysis using inventory transactions, but I don’t seem to be able to match the figures being used?

Can someone assist please?

3 replies

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  • Author
  • Sidekick (Partner)
  • 16 replies
  • March 5, 2025

Anyone ? 


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  • Hero (Employee)
  • 278 replies
  • March 6, 2025

Hello,

It would probably be good to be able to use manufacturing calendar or distribution calendar. Now when calculating ADU and ADU Alert Quantity it uses the normal calendar. Please bear in mind that the unprotected lead time for a manufactured part can consists of portions from manufactured parts and purchased part. I.e the definition of Unprotected Lead Time is: Cumulative lead time defined as the longest unprotected/unbuffered sequence in a bill of material.

When calculating ADU, Average Number of Issues in Lead Time, Average Quantity per Issue  system uses data from Inventory Transaction History. 

The calculation date starts at: Site Date - (Unprotected Lead Time + Rolling Time Horizon for Historical AD) and continues until (Site Date - 1) incrementing 1 day each iteration.


​​​​​

So heavy number crunching indeeeeed :-)

This results in many lead time intervals. And by the way… this is similar technique how we calculate ADU in the IPR engine (but there we of course does not use unprotected lead time)

All the data per overlapping lead time interval are used when calculating:

Hope this helps

-Mats


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  • Author
  • Sidekick (Partner)
  • 16 replies
  • March 6, 2025

Many thanks for this ​@majose

Good to have some detail behind what is happening under the bonnet in IFS. 

Cheers.

Alastair


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