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:

  1. Buffer positioning
  2. Buffer sizing
  3. Dynamic adjustments
  4. Demand-driven planning
  5. Visible and collaborative execution

This process ensures the optimum amount of inventory given the actual demand, rather than forecasts.

IBP for Demand-Driven Replenishment Business Benefits:

Improve on-time
delivery performance

Reduce days in inventory

Reduce inventory
carrying costs

Decrease inventory turns

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