Materials Planning
Strategy alone isn’t enough. True success requires an operating model that’s actively applied across your daily operations. Without it, you risk falling into Spreadsheet Hell - where fragmented files disrupts alignment, and planning devolves into guesswork. Execution drifts, continuous improvement stalls, and visibility fades.
In the end, it’s not just oversight you lose, it’s control.
In the end, it’s not just oversight you lose, it’s control.
What is Demand-Driven Materials Requirement Planning?
DDMRP is a formal, multi-echelon, flow-based generation, planning, and execution method. It combines the best of MRP, Lean Manufacturing, Theory of Constraints, and Six Sigma to create an operating model that is far more relevant for today’s VUCA world. By working within ranges and decoupling the supply chain, it eliminates the bullwhip effect and absorbs variability in demand, supply, and operations, bringing agility and stability that conventional material planning systems cannot match.
Speak to an Expert
Used by 2,500+ companies with the 3rd edition of the DDMRP book is now in 7 languages.
We were able to improve our inventory health by more than 44%.We reduced our obsolescence by more than 40%, while we improved our service level to an OTIF of 95% and now our raw material service has improved from 73% to 90%.
Ricardo Bribiesca, Supply Chain Director LATAM -
How does a Demand Driven Operating Model
enable rapid and sustainable results?
Pull-based planning
Uses real demand and buffers, not forecasts, to drive decisions, cutting nervousness and boosting stability.
Decouples your
Supply Chain
Strategic buffers absorb disruptions and mitigate the bullwhip effect on both demand and supply.
Visual planning
Clear, transparent charts allow planners to visualize and understand the problem, and then respond faster and smarter.
Clear prioritization
Provides clear priorities at every node so everyone knows exactly what to do.
End-to-end solutions
Merges Lean Manufacturing and MRP into one model that’s simple to adopt and easy to use.
Easy to understand
Comes with certified training, so users are taught the methodology before using the tools.
The 5 Steps of DDMRP and how to Control
& Adapt your model using DDS&OP
DDMRP Theory: You must place decoupling points at strategic positions in your supply chain to protect flow, absorb variability, and eliminate the bullwhip effect.
What b2wise adds: Simplifies the setup of decoupling points. With AI Agents, we ensure that buffers are correctly positioned in your business, allowing you to absorb supply, demand and operational variability and deliver the promised fill rates to your customers reliably and efficiently.
What b2wise adds: Simplifies the setup of decoupling points. With AI Agents, we ensure that buffers are correctly positioned in your business, allowing you to absorb supply, demand and operational variability and deliver the promised fill rates to your customers reliably and efficiently.
DDMRP Theory: After grouping items with similar characteristics, you set up the master settings to calculate the buffer for each item. These settings include the decoupling method, qualified lead time, average daily usage (ADU), demand and supply variability factors, minimum order quantity (MOQ), order multiple, replenishment interval, buffer profile assignment, buffer type, and any applicable override controls.After grouping items based on similar demand and item profiles, you use the individual item characteristics and master settings to right-size your buffers.
What b2wise adds: Let’s you model and simulate various master settings to optimize ABC/XYZ segmentation and blended ADU settings using AI Agents. In addition to the three standard buffer methods, we have developed 12 additional buffer types—covering everything from seasonal to lumpy to erratic and consignment stock —so that each buffer matches the reality of how the item behaves. We also allow you to compare models based on MRP, DDMRP, Re-order Point and TOC principles.
What b2wise adds: Let’s you model and simulate various master settings to optimize ABC/XYZ segmentation and blended ADU settings using AI Agents. In addition to the three standard buffer methods, we have developed 12 additional buffer types—covering everything from seasonal to lumpy to erratic and consignment stock —so that each buffer matches the reality of how the item behaves. We also allow you to compare models based on MRP, DDMRP, Re-order Point and TOC principles.
DDMRP Theory: Buffers must be adjusted daily as demand patterns and item characteristics change due to evolving supply settings, seasonal fluctuations, and promotional activities.
What b2wise adds: b2wise includes a comprehensive demand forecasting module that generates your demand plan and enables collaboration across teams for input. We highlight which forecast changes are meaningful and indicate which suppliers are failing to meet contracted lead times. Then we automatically adjust buffer sizes as average daily usage (ADU), variability, and lead time shift.
What b2wise adds: b2wise includes a comprehensive demand forecasting module that generates your demand plan and enables collaboration across teams for input. We highlight which forecast changes are meaningful and indicate which suppliers are failing to meet contracted lead times. Then we automatically adjust buffer sizes as average daily usage (ADU), variability, and lead time shift.
DDMRP Theory: Replace forecast-push logic with a demand-driven pull system that focuses on fulfilling actual customer orders, rather than relying on forecasted demand, which is often wrong.
What b2wise adds: In addition to Net-Flow-based pull planning, B2wise offers a comprehensive set of replenishment features. These include shelf-life management, priority share, load and container building, blanket order support, minimum order value controls, multi-supplier sourcing, and order-based pegging. This is where you manage supplier constraints and rebalance excess inventory across the network, ensuring every order is placed on time and accurately.
What b2wise adds: In addition to Net-Flow-based pull planning, B2wise offers a comprehensive set of replenishment features. These include shelf-life management, priority share, load and container building, blanket order support, minimum order value controls, multi-supplier sourcing, and order-based pegging. This is where you manage supplier constraints and rebalance excess inventory across the network, ensuring every order is placed on time and accurately.
DDMRP Theory: Prioritization of orders must happen at every strategic decoupling point in the forward-looking supply chain, using clear visual signals to protect flow and focus resources where they matter most.
What b2wise adds: In addition to calculating priorities using the color coding of DDMRP buffers at each decoupling point, B2wise allows you to sequence orders based on real constraints such as production capacity, supply limitations (like missing components), or setup-time efficiency. You can apply production wheels, optimize changeovers, ensuring that execution plans reflect the true operational constraints of your business.
What b2wise adds: In addition to calculating priorities using the color coding of DDMRP buffers at each decoupling point, B2wise allows you to sequence orders based on real constraints such as production capacity, supply limitations (like missing components), or setup-time efficiency. You can apply production wheels, optimize changeovers, ensuring that execution plans reflect the true operational constraints of your business.
DDMRP Theory: You must continuously monitor the integrity of your operating model by reviewing variances and signal integrity, such as ensuring that planners follow orders. Then you must adapt your master settings to better reflect real-world variability.Demand-Driven S&OP is the tactical hub that keeps plans on track - It serves as the tactical engine of your business - built to monitor the health of your operating model and ensure seamless execution of your sales and operations plan.
What b2wise adds: b2wise makes it easy to monitor and improve your master settings over time. You can attach user notes and assign reason codes to understand why signals were overridden. We track buffer, stock on hand and NetFlow history to identify variances and outliers easily. We let you simulate improvement strategies—such as reducing MOQs or lead times—and evaluate the trade-offs between cost and inventory, so your settings remain practical and performance-driven.
What b2wise adds: b2wise makes it easy to monitor and improve your master settings over time. You can attach user notes and assign reason codes to understand why signals were overridden. We track buffer, stock on hand and NetFlow history to identify variances and outliers easily. We let you simulate improvement strategies—such as reducing MOQs or lead times—and evaluate the trade-offs between cost and inventory, so your settings remain practical and performance-driven.
Ready to see b2wise in action?
