If you are trying to reduce finished good lead times, how does this work with a pre-existing SAP MRP setup? Do you just add a safety stock on each component material according to the calculation of the buffer?
Thanks for your question. There is a long answer to this, but I'll try to be brief here. Think about WHERE you need to place inventory to achieve the desired customer lead time. Then use the DDMRP buffer to maintain a level of inventory (capability) of those parts / locations. One thing we see in standard planning is planners/buyers are often unwilling to place orders for raw materials until an order arrives from the customer (which is too late). If you know orders will come, then to be prepared, you must order to maintain a level of inventory (proactive). See my restaurant video and think about capability to produce. Bottom line in a pre-existing setup, you need to adapt DDMRP as a bolt on, or within your existing system. We cannot continue to try and "duct-tape" the existing systems. Hope that helps. Feel free to reach out for conversation (John@BecomeDemandDriven.com)
Yes. Think about it as a Demand Input. By group or even individual part number, you set what is being used as demand. And you can adjust for things like seasonality using an adjustment factor. Hope that helps. John
Not sure I understand the question. On hand from yesterday, minus usage, plus receipts. This is not different than it has always been. Expected on hand minimum is the red zone, maximum is the red zone plus the green zone. Average expected on hand is red zone plus half of green zone. Hope that captured your intended meaning.
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If you are trying to reduce finished good lead times, how does this work with a pre-existing SAP MRP setup? Do you just add a safety stock on each component material according to the calculation of the buffer?
Thanks for your question. There is a long answer to this, but I'll try to be brief here. Think about WHERE you need to place inventory to achieve the desired customer lead time. Then use the DDMRP buffer to maintain a level of inventory (capability) of those parts / locations. One thing we see in standard planning is planners/buyers are often unwilling to place orders for raw materials until an order arrives from the customer (which is too late). If you know orders will come, then to be prepared, you must order to maintain a level of inventory (proactive). See my restaurant video and think about capability to produce.
Bottom line in a pre-existing setup, you need to adapt DDMRP as a bolt on, or within your existing system. We cannot continue to try and "duct-tape" the existing systems. Hope that helps. Feel free to reach out for conversation (John@BecomeDemandDriven.com)
Dear Friends, I have a question: Can DDMRP run both sale orders and sale forecast, right?.
Yes. Think about it as a Demand Input. By group or even individual part number, you set what is being used as demand. And you can adjust for things like seasonality using an adjustment factor. Hope that helps. John
How is On Hand Calculated day -on-day?
Not sure I understand the question. On hand from yesterday, minus usage, plus receipts. This is not different than it has always been. Expected on hand minimum is the red zone, maximum is the red zone plus the green zone. Average expected on hand is red zone plus half of green zone. Hope that captured your intended meaning.