Good afternoon. We have been implementing DDMRP and have now also purchased demand planner and IPR. I am curious if it is more advantageous to use DDMRP than IPR? Is DDMRP the next step beyond IPR? Is it that we may want to use DDMRP for some parts, while using IPR for others?
All the best,
Sarah
Demand Driven MRP is a planning strategy which are predominantly used in Manufacturing industry specially make to order scenarios where this gives the flexibility to compress the cumulative lead time of the product without affecting the production situations. Here you need to identify the parts which need to be planned under DDMRP using following criteria.
So, that you can have the optimal stock level of critical component with the longest lead time based on the either the historical consumption or the based on future forecast horizon.
But in IPR which is used in more of make to stock scenario’s where components are produced or procured based on the forecast generated by making use of the historical consumption (other factors can also be included in demand forecast). Here there is a risk of having more stock than the actual demand as we go with forecast and hence, we can’t choose this method for those item with are expensive and if there are any storage constraints like space, storage conditions & shelf life, inventory controls etc.
You can have the mix of these , but consider the above criteria’s while making decision.
Regards,
Mithun K V
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