Implementing DDMRP : Supply Chain transformation Through Inventory Management

Abstract: An organization's systematic operation and supply chain management are the criteria for developing a sustainable competitive advantage over other companies. However, fulfilling this goal has become increasingly difficult in today's business environment, as traditional planning and control methods were not designed to withstand such difficulty, hence making the supply chain very complex. This complexity emanated due to high demand and supply variability in the system. In this regard, companies experience a lack of required materials or unavailability of the materials needed for production purposes. Such a situation prompts the movement of planners migrating from the traditional deterministic domain, Push-based MRP methodology to a more systematic pull-based demand-driven material requirement planning (DDMRP) approach that works in a more complex and unstable business environment, with an unparalleled characteristic for maintaining flow stability in the manufacturing operation. The establishment of DDMRP is for the sole purpose of maintaining a proper flow with the main intent of inventory monitoring as well as the associated cost. This proposition suggests the identification of specific items at strategic positions for planning maintenance flow in the production process. It basically centers on regular monitoring of the inventory buffer level sufficient enough to sustain the flow in order to avoid any operational disruption. The Insufficient understanding of the DDMRP methodology makes the practitioners unable to implement the concept in a proper manner, thereby not achieving the proposed result. This research, however, investigates the subject of DDMRP as a more efficient planning and execution strategy for proper flow management affecting the overall dynamics of supply chain management.