Demand Driven Material Requirements Planning is a formal multi-echelon planning and execution method developed by Ms. Carol Ptak and Mr. Chad Smith.
DDMRP combines blended aspects of Material Requirements Planning (MRP), Distribution Requirements Planning (DRP) with the pull and visibility emphases found in Lean and the Theory of Constraints and the variability reduction emphasis of Six Sigma.
This method has five sequential components:
These five components work together to greatly dampen, if not eliminate, the nervousness of traditional MRP systems and the bullwhip effect in complex and challenging environments.
This approach provides real information about those parts that are truly at risk of negatively impacting the planned availability of inventory.
DDMRP sorts the significant few items that require attention from the many parts that are being managed. Under the DDMRP approach, fewer planners can make better decisions more quickly. That means companies will be better able to leverage their working and human capital.
Demand Driven Material Requirements Planning is quickly being adopted by a wide variety of leading companies across the world.
Some of the benefits reported by the DDMRP method include:
It is highly recommended to read the book ‘Demand Driven Material Requirements Planning (DDMRP)’ by Carol Ptak and Chad Smith.
Table of contents
We strongly recommend to modify the configuration of the reservation method to manual in the outgoing operation types (so deliveries related to Sales Orders aren’t automatically reserved) and to avoid to reserve stock for specific moves, buffers are in fact a reservation of stock. However, while reservation is discouraged, it is still available to be used, in case of reserved stock be aware that the buffer will be blind to this transfers and stock and you are bypassing the DDMRP reordering flow.
The DLT is automatically computed by the system.
For manufactured products’ buffers just remember to provide and set properly the following information:
For purchased/distributed products’ buffers the logic is simpler.
To easily identify were are you maintaining buffers in your Bill of Materials, you will need to first provide location information on the Bills of Materials.
To list the list of inventory buffers, go to one of the following: * Inventory / Master Data / Stock Buffer Planning * Inventory / Master Data / Reordering Rules
Buffer profiles make maintenance of buffers easier by grouping them in profiles. Changes applied to the profiles will be applicable in the associated buffer calculations.
The Buffer Profile Lead Time Factor influences the size of the Buffer Green zone. Items with longer lead times will usually have smaller green zones, which will translate in more frequent supply order generation.
The Buffer Profile Variability Factor influences the size of the Buffer Red Safety zone. Items with longer lead times will usually have smaller green zones, which will translate in more frequent supply order generation.
Usual factors should range from 0.2 (long lead time) to 0.8 (short lead time).
The Average Daily Usage (ADU) defines the frequency of demand of a product in a certain location. It can be computed in different ways, which you can configure with ADU calculation methods as follows:
If you do not have prior history of stock moves in your system, it is advised to use fixed method or start to work on future estimates. If you have past-history of stock moves, best use past-looking method or blended method.
The ADU is computed every day by default in a background job independently from the other buffer fields. This computation can be done with less frequency but it is not recommended to run it less than weekly or more than daily. Circumstantially, If you need to force the calculation of the ADU go to Inventory / Configuration / DDMRP / Run DDMRP and click on Run ADU calculation.
The DDMRP roadmap and known issues can be found on GitHub.
Features
Bugs are tracked on GitHub Issues. In case of trouble, please check there if your issue has already been reported. If you spotted it first, help us to smash it by providing a detailed and welcomed feedback.
Do not contact contributors directly about support or help with technical issues.
The initial development of this module has been financially supported by:
This module is maintained by the OCA.
OCA, or the Odoo Community Association, is a nonprofit organization whose mission is to support the collaborative development of Odoo features and promote its widespread use.
Current maintainers:
This module is part of the OCA/ddmrp project on GitHub.
You are welcome to contribute. To learn how please visit https://odoo-community.org/page/Contribute.