Why is it important?
The Decoupling Points help absorb variability in supply and demand, ensuring faster response times and reducing lead time fluctuations. In DDMRP, these points are crucial for stabilizing material flow and improving service levels. The inventory placed at a decoupling point is called Buffer.
The selection of decoupling points is a strategic decision that determines customer lead times and inventory investment, but if poorly placed, they can lead to inefficiencies and excess stock. ForgeFlow Cloud ERP’s DDMRP system provides you with the necessary visibility to strategically position decoupling points and reduce variability, optimize inventory, and accelerate responsiveness—ensuring a smooth and demand-driven supply chain.
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