Demand driven material requirements planning (DDMRP) is an advanced planning and execution method designed to enhance the flow of relevant information in supply chains. It strategically decouples inventory from sales forecasts and introduces new lead time calculations. This approach aims to address the inefficiencies often found in traditional MRP systems, which can lead to excess inventory or stockouts.

Organizations that adopt DDMRP can experience several benefits, including improved customer service with on-time order fulfillment rates reaching 97 to 100 percent, lead time reductions of over 80 percent, and inventory optimization that can unlock reductions of 30 to 45 percent without compromising service levels. Additionally, DDMRP helps lower total operating costs by minimizing disruptions and enhancing planner productivity.

DDMRP is a new feature available for preview in Microsoft Dynamics 365 Supply Chain Management. It is compliant with standards set by the Demand Driven Institute, ensuring its principles are effectively utilized. The platform also includes microservices like the Planning Optimization Add-in, which enhances planning agility and reduces planning runtimes from hours to minutes, enabling organizations to respond more effectively to changing demands.