Business Terms Dictionary

Supply Planning

The process of determining how to efficiently replenish inventory to meet demand while minimizing costs and avoiding shortages or overstocking. © Copyright 2025 Demand Driven Institute. Used with permission.

What is it used for?


In DDMRP, Supply Planning is driven by real-time demand signals, buffer status, and replenishment strategies rather than traditional forecasts. It ensures that materials and products flow smoothly through the supply chain by aligning supply with actual consumption.


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Traditional supply planning often leads to overstocking or shortages due to inaccurate forecasts. With ForgeFlow Cloud ERP’s DDMRP system, supply planning is based on buffer status and demand-driven replenishment, ensuring materials are available when needed—without excess inventory. 
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