Demand Driven Material
Requirements Planning
(DDMRP)
Version 2
Carol Ptak and Chad Smith
INDUSTRIAL PRESS, INC.
Industrial Press, Inc.
32 Haviland Street, Suite 3
South Norwalk, Connecticut 06854
Phone: 203-956-5593
Toll-Free in USA: 888-528-7852
Fax: 203-354-9391 Email:
Authors: Carol Ptak and Chad Smith
Title: Demand Driven Material Requirements Planning (DDMRP), Version 2
Library of Congress Control Number: 2018932681
© by Carol Ptak and Chad Smith
All rights reserved. Published in 2018.
Printed in the United States of America.
ISBN (print): 978-0-8311-3628-4
ISBN (ePUB): 978-0-8311-9480-2
ISBN (eMOBI): 978-0-8311-9481-9
ISBN (ePDF): 978-0-8311-9479-6
Editorial Director: Judy Bass
Copy Editor: Judy Duguid
Compositor: Patricia Wallenburg, TypeWriting
Cover Designer: Janet Romano-Murray
No part of this book may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without written permission from the publisher.
Limits of Liability and Disclaimer of Warranty
The author and publisher make no warranty of any kind, expressed or implied, with regard to the documentation contained in this book.
All rights reserved.
The Demand Driven Institute logo is a trademark of the Demand Driven Institute. All rights reserved. The Certified Demand Driven Planner logo is a trademark of the International Supply Chain Education Alliance (ISCEA). All rights reserved.
Contents
The Material Requirements Planning Revolution
Return on Asset Performance Degradation
The Inventory Bimodal Distribution
Establishing Flow as the Foundation
Relevant Information and Materials
Material Requirements Planning in the New Normal
Distortions to Relevant Information
Flattening the Bill of Material
Distortions to Relevant Materials
Amplifying the Distortions to Relevant Information and Materials—Batching Policies