Business Terms Dictionary

Demand Driven Material Requirements Planning (DDMRP)

An advanced supply chain planning method that focuses on protecting and promoting material and information flow by strategically placing inventory buffers at key Decoupling Points. © Copyright 2025 Demand Driven Institute. Used with permission.

How does it work?


Unlike traditional MRP, which relies on forecasts, DDMRP generates and manages supply orders based on actual demand signals. As the core engine of the Demand Driven Operating Model (DDOM), DDMRP ensures that replenishment decisions are responsive, reducing variability and improving overall supply chain performance.


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Struggling with stockouts or excess inventory due to inaccurate forecasts? ForgeFlow Cloud ERP leverages DDMRP to generate supply orders dynamically, ensuring demand-driven replenishment. By prioritizing material flow and reducing lead times, you achieve a more agile, efficient, and resilient supply chain.
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