Post on 23-Apr-2020
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