DDMRP, or demand driven material requirements planning, 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 limitations of traditional MRP, which often leads to excess inventory or stockouts.

Organizations using 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, it helps lower total operating costs by minimizing false signals and schedule disruptions.

DDMRP is a key feature in Microsoft Dynamics 365 Supply Chain Management, which is compliant with standards set by the Demand Driven Institute. The platform also includes microservices like the Planning Optimization Add-in, which enhances planning efficiency by reducing calculation times from hours to minutes and allows for priority-based planning, enabling organizations to respond more effectively to changing demands.