Demand-Driven MRP is a modern planning methodology that combines traditional Material Requirements Planning (MRP) with pull-based lean principles and real-time demand signals. DDMRP aims to overcome the limitations of forecast-driven planning by using actual consumption and strategically positioned inventory buffers to trigger replenishment. In contrast to classic MRP, which often leads to overproduction or delayed response due to forecast inaccuracies, DDMRP aligns supply with actual market demand. It helps companies reduce lead times, minimize stockouts, and improve service levels. Strategic decoupling points are established in the supply chain where inventory buffers are placed to absorb variability and allow for more flexible, responsive operations. DDMRP requires accurate demand sensing and visibility into supply chain flows. It integrates with advanced planning systems and can coexist with ERP and S&OP frameworks. Many companies that operate in volatile or highly customized environments (such as aerospace, electronics, or industrial machinery) find DDMRP particularly beneficial due to its agility and ability to adapt to real-world disruptions.
