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Demand Driven MRP Five Components Examined

Demand Driven MRP Five Components Examined

Forecast Errors newsletter reported that Demand Driven MRP (DDMRP) implementation has five components:

  • Strategic inventory positioning: A dramatic improvement proposed by DDMRP. Systems Theory indicates that the best way of improving a system is by re-designing it, not by operating on it. Strategic positioning is the way in which DDMRP redesigns the system.
  • Buffer sizing: A very robust mechanism for defining the size of the buffers and their zones. It is amazing how much information about a part you may get from its buffer once you get familiar with the way they are built.
  • Dynamic adjustments: In order to size the buffer according to regular and expected market and product changes.
  • Planning: Issuing replenishment orders with the innovative “Available Stock” equation that includes qualified demand.
  • Execution: Following up open orders with high visibility and four different types of alerts.

Forecast Errors, a weekly e-newsletter, sponsored by Ultriva, Inc. shares methods, modes, and tools used to inform Manufacturers’ of Forecast Errors that they face on the manufacturing floor, and with a variety of supply chain industries. The newsletter explores forecast errors as the difference between the actual and predicted value. In the current issue, Forecast Errors argued that what separates best-in-class companies from those that struggle with accuracy is how they root out (and learn from) forecasting errors.

A forecast error is the difference between the actual and predicted value. The consequences are expensive inefficiencies that can be resolved with lean manufacturing technology.

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About Ultriva

Ultriva’s ( cloud-based platform leverages seamlessly integrates with leading ERP and MRP systems, to deliver an end to end pull based replenishment solution. Ultriva, based in Cupertino, CA, implements a global demand driven manufacturing model by providing full visibility, scheduling, and sequencing of production of customer orders. Ultriva was named one of the Great Supply Chain Projects of 2014 by Supply & Demand Chain Executive magazine and recently named one of 50 Best Supply Chain Blogs of 2014 by SupplyChainOpz. The company’s global footprint is increasing rapidly with implementations in wide variety of industry sectors and enterprises such as Magellan Aerospace, CareFusion, Emerson, Ingersoll Rand, McKesson, Triumph Group, Regal Beloit, Thermo Fisher, and more.

Follow Ultriva on Twitter at @Ultriva



Media Contact
Company Name: Ultriva Inc.
Contact Person: Cynthia Leonard, Marketing Executive
Email: Send Email
Phone: 408-961-2495
Address:1601 S. DeAnza Blvd. #165
City: Cupertino
State: California
Country: United States


February 2018
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