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Demand Driven Material Requirements Planning is a formal multi-echelon planning and execution method developed by Ms. Carol Ptak and Mr. Chad Smith.
DDMRP combines blended aspects of Material Requirements Planning (MRP), Distribution Requirements Planning (DRP) with the pull and visibility emphases found in Lean and the Theory of Constraints and the variability reduction emphasis of Six Sigma.
This method has five sequential components:
#. Strategic Inventory Positioning. Answers the question "Given our system and environment, where should we place inventory to have the best protection?" and determines where should decoupling points of inventory be placed.
#. Buffer Profiles and Levels. Determine the amount of protection at those decoupling points.
#. Dynamic Adjustments. Allow the company to adapt buffers to group and individual part trait changes over time through the use of several types of adjustments.
#. Demand Driven Planning. Allow to launch purchase orders (POs), manufacturing orders (MOs) and Transfer Orders (TOs) based on the priority dictated by the buffers.
#. Visible and Collaborative Execution. These POs, MOs and TOs have to be effectively managed to synchronize with the changes that often occur within the "execution horizon."
These five components work together to greatly dampen, if not eliminate, the nervousness of traditional MRP systems and the bullwhip effect in complex and challenging environments.
This approach provides real information about those parts that are truly at risk of negatively impacting the planned availability of inventory.
DDMRP sorts the significant few items that require attention from the many parts that are being managed. Under the DDMRP approach, fewer planners can make better decisions more quickly. That means companies will be better able to leverage their working and human capital.
Demand Driven Material Requirements Planning is quickly being adopted by a wide variety of leading companies across the world.
Some of the benefits reported by the DDMRP method include:
It is highly recommended to read the book 'Demand Driven Material Requirements Planning (DDMRP)' by Carol Ptak and Chad Smith.
Table of contents
.. contents:: :local:
We strongly recommend to uninstall procurement_jit (so deliveries
related to Sales Orders aren't automatically reserved) and to avoid to
reserve stock for specific moves, buffers are in fact a reservation of stock.
However, while reservation is discouraged, it is still available to be
used, in case of reserved stock be aware that the buffer will be blind to this
transfers and stock and you are bypassing the DDMRP reordering flow.
Scheduled actions
* Go to *Settings > Technical*.
* 'DDMRP Buffer ADU calculation'. Computes the Average Daily Usage for all
Buffers.
* 'Reordering Rule DDMRP calculation'. Computes the Qualified Demand, Net
Flow Position, Planning and Execution priorities for all Buffers.
Decoupled Lead Time computation
The DLT is automatically computed by the system.
For manufactured products' buffers just remember to provide and set properly the following information:
For purchased/distributed products' buffers the logic is simpler.
To easily identify were are you maintaining buffers in your Bill of Materials, you will need to first provide location information on the Bills of Materials.
Go to Manufacturing / Products / Bill of Materials and update the 'Location' in all the Bill of Materials and associated lines, indicating where will the parts be placed/used during the manufacturing process.
Print the report 'BOM Structure' to display where in your BOM are you maintaining buffers, and to identify the Lead Time (LT) of each product, and Decouple Lead Time (DLT).
Buffers
To list the list of inventory buffers, go to one of the following:
* *Inventory / Master Data / Stock Buffer Planning*
* *Inventory / Master Data / Reordering Rules*
Buffer Profiles
Buffer profiles make maintenance of buffers easier by grouping them in profiles. Changes applied to the profiles will be applicable in the associated buffer calculations.
The Buffer Profile Lead Time Factor influences the size of the Buffer Green zone. Items with longer lead times will usually have smaller green zones, which will translate in more frequent supply order generation.
The Buffer Profile Variability Factor influences the size of the Buffer Red Safety zone. Items with longer lead times will usually have smaller green zones, which will translate in more frequent supply order generation.
Usual factors should range from 0.2 (long lead time) to 0.8 (short lead time).
Product attributes
* For manufactured products, go to *Manufacturing / Products* and
update the 'Manufacturing Lead Time' field, available in the tab *Inventory*.
* For purchased products, go to go to *Purchasing / Products* and update the
*Delivery Lead Time* for each vendor, available in tab *Purchase* and section
*Vendors*.
ADU Calculation Methods
The Average Daily Usage (ADU) defines the frequency of demand of a product in a certain location. It can be computed in different ways, which you can configure with ADU calculation methods as follows:
#. Go to Inventory / Configuration / DDMRP / ADU calculation methods. #. Indicate a name, a calculation method (fixed, past-looking, future-looking or blended). #. Fill the corresponding period (past, future or both for blended method) to specify the length of period consideration (in days). #. Indicate the source of information: stock moves or demand estimates. #. If you use the blended method fill also the Past Factor and Future Factor.
If you do not have prior history of stock moves in your system, it is advised to use fixed method or start to work on future estimates. If you have past-history of stock moves, best use past-looking method or blended method.
The ADU is computed every day by default in a background job independently from the other buffer fields. This computation can be done with less frequency but it is not recommended to run it less than weekly or more than daily. Circumstantially, If you need to force the calculation of the ADU go to Inventory / Configuration / DDMRP / Run DDMRP and click on Run ADU calculation.
The DDMRP roadmap <https://github.com/OCA/ddmrp/issues?q=is%3Aopen+is%3Aissue+label%3Aenhancement>_
and known issues <https://github.com/OCA/ddmrp/issues?q=is%3Aopen+is%3Aissue+label%3Abug>_ can
be found on GitHub.
13.0.1.1.0 (2020-07-01)
**Features**
- - New setting *Update NFP on Stock Buffers on relevant events*.
- New dedicated settings block. (`#50 <https://github.com/OCA/ddmrp/issues/50>`_)
13.0.1.0.0 (2020-06-11)
11.0.1.3.0 (2019-02-21)
* [ADD] New chart that depict information about the supply and demand (
displaying also de order spike threshold and horizon) for a buffer.
(`#40 <https://github.com/OCA/ddmrp/pull/40>`_)
11.0.1.2.0 (2019-01-29)
#36 <https://github.com/OCA/ddmrp/pull/36>_)#37 <https://github.com/OCA/ddmrp/pull/37>_)11.0.1.1.0 (2018-08-31)
* [IMP] Implemented Blended ADU calculation method.
(`#23 <https://github.com/OCA/ddmrp/pull/23>`_)
11.0.1.0.0 (2018-07-16)
Bugs are tracked on GitHub Issues <https://github.com/OCA/ddmrp/issues>.
In case of trouble, please check there if your issue has already been reported.
If you spotted it first, help us to smash it by providing a detailed and welcomed
feedback <https://github.com/OCA/ddmrp/issues/new?body=module:%20ddmrp%0Aversion:%2014.0%0A%0A**Steps%20to%20reproduce**%0A-%20...%0A%0A**Current%20behavior**%0A%0A**Expected%20behavior**>.
Do not contact contributors directly about support or help with technical issues.
Authors
* ForgeFlow
Contributors
Other credits
The initial development of this module has been financially supported by:
* Aleph Objects, Inc.
Maintainers
~~~~~~~~~~~
This module is maintained by the OCA.
.. image:: https://odoo-community.org/logo.png
:alt: Odoo Community Association
:target: https://odoo-community.org
OCA, or the Odoo Community Association, is a nonprofit organization whose
mission is to support the collaborative development of Odoo features and
promote its widespread use.
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:target: https://github.com/JordiBForgeFlow
:alt: JordiBForgeFlow
.. |maintainer-LoisRForgeFlow| image:: https://github.com/LoisRForgeFlow.png?size=40px
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:alt: LoisRForgeFlow
Current `maintainers <https://odoo-community.org/page/maintainer-role>`__:
|maintainer-JordiBForgeFlow| |maintainer-LoisRForgeFlow|
This module is part of the `OCA/ddmrp <https://github.com/OCA/ddmrp/tree/14.0/ddmrp>`_ project on GitHub.
You are welcome to contribute. To learn how please visit https://odoo-community.org/page/Contribute.
FAQs
Demand Driven Material Requirements Planning
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