Ehtesham AhmedLeo Ducrot

Can DDMRP be a Game-Changer for Supply Chain Planning?

Student: Leo Ducrot, SCM 2019Student: Ehtesham Ahmed, SCM 2019Advisor: Dr Sergio Caballero, Dr Tugba EfendigilSponsor: OM Partners, P&G, Demand Driven Institute

This ‘‘New Normal’ challenges conventional planning systems,which can lead to high inventory and poor service level. CanDDMRP bring a solution to handle the increased complexity?

Understanding the potential added value of DDMRP inplanning under uncertainty at finite capacity

• Identifying possible benefits of DDMRP• Identifying possible limitations of DDMRP• Comparing performances of DDMRP and AdvancedPlanning Systems with the main planning KPI and ROI

• Recommending the planning method to use fordifferent constraints and viable ways to combine the twomethodsMethodology

The Problem & Solution - Inventory

Motivation / Background

Key Question / Hypothesis

Relevant Literature

Expected Results

Expected Contribution

January 2019 Poster Session

BACK TO KIOSK MENU

ResultsSimulation ModelSurveyInterviews

Too little

Warning Optimal Range Warning Too much

Bimodal inventory distribution DDMRP Optimal inventory distribution

1965 TodaySupply chain Complexity Low HighProduct Life Cycles Long ShortCustomer Tolerance Times Long ShortLong Lead Time Parts Few ManyForecast Accuracy High Low

DDMRP creates a more stable and suitable environment for MRP. What if APS is a better fit?

Capacity Constraint

Sourcing decision

Shelf-life Constraint

MRP APS DDMRP

Current literature available

1965 1990’s 2011

Project scope PhD thesis

11%service level

-31%inventory

-22%leadtime reduction

Can these numbers be achieved in all industries?

Inve

ntor

y tu

rn

Service Level

Interviews: A few companies,

in-depth investigation

Survey: Many companies,

targeted questions

Simulation: Comparing APS and DDMRP in a

controlled environment

Too little

Warning Optimal Range Warning Too much