Demand Driven Material Requirements Planning is an innovative multi-echelon pull methodology to plan inventories and materials.

It enables a company to build more closely to actual market requirements and promotes better and quicker decisions and actions at the planning and execution level.

DDMRP was introduced to the world in the book Orlicky’s Material Requirements Planning, Third Revised Edition by Carol Ptak and Chad Smith.

Bringing MRP into the 21st Century

MRP, first developed in limited fashion in the 1950s and 60s, really took off in the 1970s, when computer systems enabled widespread adoption and APICS undertook the “MRP Crusade” to popularise it.

MRP morphed in the late 1970s and 80s into MRP II and ultimately ERP. But the heart of today’s ERP systems, at least in the manufacturing sector, is still the MRP processing logic that is essentially unchanged since the 1970s.

👍 Improved customer service

Users consistently achieve **98-100% ** on time fill rate performance.

⏱ Lead Time Compression

Lead time reductions in excess of 80% have been achieved in several industry segments.

📦 Right-sizes Inventory

Typical inventory reductions of 30-45% are achieved while improving customer service.

💰 Lowest total supply chain cost

Costs related to expedite activity and false signals are largely eliminated (fast freight, partial ships, cross-ships, schedule break-ins).

✅ Easy and Intuitive

Planners see priorities instead of constantly fighting the conflicting messages of MRP.