Content: Cover (Demand Driven Material Requirements Planning (DDMRP_Version2))
Front Matter
Title Page
Copyright
Contents
Foreword
Definitions in This Book
Introduction
About the Authors
Chad Smith
Carol Ptak
Acknowledgments
Part 1 Perspective
Chapter 1
Planning in the New Normal
The Material Requirements Planning Revolution
Evidence of a Problem
Return on Asset Performance Degradation
Work-Around Proliferation
The Inventory Bimodal Distribution
The New Normal
Summary
Chapter 2
The Importance of Flow
Plosslâ#x80
#x99
s First Law
Establishing Flow as the Foundation Relevant Information and MaterialsThe Bullwhip Effect
Summary
Chapter 3
Material Requirements Planning in the New Normal
What Is MRP?
Distortions to Relevant Information
Demand Signal Input
Nervousness
The Weekly Bucket
Flattening the Bill of Material
Distortions to Relevant Materials
Common Cause Variation
Delay Accumulation
Amplifying the Distortions to Relevant Information and Materialsâ#x80
#x94
Batching Policies
Summary
Chapter 4
Unlocking a Solutionâ#x80
#x94
The Power of Decoupling
Decoupling
Decoupling Point Buffers
Summary
Part 2 Becoming Demand Driven
Chapter 5 Supply Order Generation and Execution for the New NormalMRP Versus Leanâ#x80
#x94
What Can We Learn?
Dependence Versus Independence
Supply Order Generation (Planning Versus Execution)
Lean and Technology
Demand Driven Material Requirements Planning
The History of â#x80
#x9C
Demand Drivenâ#x80
#x9D
Position, Protect, and Pull
Summary
Chapter 6
Strategic Inventory Positioning
Positioning Factors
Customer Tolerance Time
Market Potential Lead Time
Sales Order Visibility Horizon
External Variability
Inventory Leverage and Flexibility
Critical Operation Protection
Applying the Positioning Criteria A New Form of Lead TimeAdvanced Inventory Positioning Considerations
Distribution Positioning Considerations
Summary
Chapter 7
Strategic Buffers
Inventory: Asset or Liability?
Introducing Decoupling Point Buffers
The Green Zone
The Yellow Zone
The Red Zone
Buffer Profiles
Factor 1: Item Type
Factor 2: Lead Time
Factor 3: Variability
Individual Part Attributes
Part Average Daily Usage
Length-of-Period Consideration
Frequency-of-Update Consideration
Past, Forward, or Blended Consideration
ADU Exceptions
Establishing ADU for Items with No History
Part Lead Time Part Minimum Order QuantityPart Location
Calculating Replenished Part Buffer Levels and Zones
The Green Zone
Option 1: An Imposed or Desired Minimum Order Cycle
Option 2: Using a Lead Time Factor
Option 3: Minimum Order Quantity (if Applicable)
The Yellow Zone
The Red Zone
Continuing with Company ABC
Iterations
Calculating Replenished Override Buffers
Calculating Min-Max Buffers
Summary
Chapter 8
Buffer Adjustments
Recalculated Adjustments
Planned Adjustment Factors
Demand Adjustment Factor
Rapid Buffer Adjustment
Product Introduction, Deletion, and Transition