BACK TO Can DDMRP be a Game-Changer for Supply Chain … · 2019-06-07 · Leo Ducrot EhteshamAhmed...
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Ehtesham Ahmed Leo Ducrot Can DDMRP be a Game-Changer for Supply Chain Planning? Student: Leo Ducrot, SCM 2019 Student: Ehtesham Ahmed, SCM 2019 Advisor: Dr Sergio Caballero, Dr Tugba Efendigil Sponsor: OM Partners, P&G, Demand Driven Institute This ‘‘New Normal’ challenges conventional planning systems, which can lead to high inventory and poor service level. Can DDMRP bring a solution to handle the increased complexity? Understanding the potential added value of DDMRP in planning under uncertainty at finite capacity • Identifying possible benefits of DDMRP • Identifying possible limitations of DDMRP • Comparing performances of DDMRP and Advanced Planning Systems with the main planning KPI and ROI • Recommending the planning method to use for different constraints and viable ways to combine the two methods Methodology The Problem & Solution - Inventory Motivation / Background Key Question / Hypothesis Relevant Literature Expected Results Expected Contribution January 2019 Poster Session BACK TO KIOSK MENU Results Simulation Model Survey Interviews Too little Warning Optimal Range Warning Too much Bimodal inventory distribution DDMRP Optimal inventory distribution 1965 Today Supply chain Complexity Low High Product Life Cycles Long Short Customer Tolerance Times Long Short Long Lead Time Parts Few Many Forecast 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? Inventory turn 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
Transcript of BACK TO Can DDMRP be a Game-Changer for Supply Chain … · 2019-06-07 · Leo Ducrot EhteshamAhmed...
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
