DDMRP or Demand Driven Material Requirements Planning is a supply chain management method. The management of this Supply Chain is done by the customer request. The objective of DDMRP is to amortize these variabilities of customer requests via buffers.
These buffers are our shock absorbers, they will be placed and dimensioned strategically to optimize the supply chain and cushion customer demand.
To place them and size them we must study the Supply Chain to find the points of rupture and dense variability. The buffers are calculated according to:
- The daily consumption
- The cycle of the components
- The risks of variation
They can however be resized in due time if one of these criteria are changing.
These buffers will therefore absorb customer demand to obtain a production of stocks like this one: