Demand Driven Material Requirements Planning

Demand Driven Material Requirements Planning is also known as Pull MRP.

Here’s an interesting argument for repackaging MRP for pull by Chad Smith & Carol Ptak
21st Century Supply Chains Require Demand Driven Rules and Tools.

The very logic of Material Requirements Planning almost guarantees the ‘Bullwhip Effect’ where small variations in the timing or quantity of supply or demand get amplified due to action message delays and expediting. Perhaps new technology can address the limitations of classic material requirements planning, but it remains to be proven if faster forecasting algorithms and neural net MRP logic can be simpler and more sustainable than pull replenishment.

Any thoughts?


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