SAP Integrated Business Planning | Demand-Driven Replenishment
Demand-driven tactical planning involves planning and stocking inventory based on the actual demand by structuring a demand-driven material requirements planning (DDMRP) buffer network. It also includes creating strategically placed inventory buffers to reduce a bullwhip effect, identifying the recommended decoupling points for products, and determining the recommended buffer size.
The application enhances management of all components of DDMRP process:
- Buffer positioning
- Buffer sizing
- Dynamic adjustments
- Demand-driven planning
- Visible and collaborative execution
This process ensures the optimum amount of inventory given the actual demand, rather than forecasts.