The Net Flow Equation
Qualifying Order Spikes
Supply Order Generation Based on Net Flow Position
Simulating DDMRP Supply Order Generation
Calculating Average On-Hand Inventory
Average On-Hand Range
Average On-Hand Target
Average Open Supply Orders
Decoupled Explosion
Hybrid Model Supply Order Generation
Prioritized Share Supply Order Consideration
Discount Optimization
Freight Optimization
Coverage Optimization
Min-Max Supply Order Generation
Completing the Company ABC Example
Summary
CHAPTER 10
Demand Driven Execution
Buffer Status Alerts
Challenging Priority by Due Date
Planning Versus Execution Display
Current On-Hand Alert
Projected On-Hand Alert
Synchronization Alerts
Material Synchronization Alerts
Lead Time Alert
Summary
CHAPTER 11
DDMRP Impacts on the Operational Environment
DDMRP Strategic Buffer Criteria
The Decoupling Test
The Bidirectional Benefit Test
The Order Independence Test
The Primary Planning Mechanism Test
The Relative Priority Test
The Dynamic Adjustment Test
DDMRP Versus Safety Stock and Order Point
Safety Stock and the Buffer Criteria
Order Point and the Buffer Criteria
DDMRP Impacts on Scheduling
DDMRP and Master Production Scheduling Assumptions
DDMRP Shop Floor Scheduling Implications
Finite Scheduling with DDMRP?
Additional Scheduling Sequence Impacts
DDMRP and WIP Priority Management
Summary
CHAPTER 12
DDMRP Metrics and Analytics
Measuring Relevant Information (Signal Integrity)
Measuring Decoupling Point Integrity
Outlying Event Reports
Measuring Velocity
Driving Improvement in DDMRP
Summary
CHAPTER 13
The Demand Driven Adaptive Enterprise Model
Demand Driven Operating Model
Element #1: Pacing to Actual Demand
Element #2: Strategic Decoupling Points
Element #3: Strategic Control Points
Element #4: Dynamic Buffering
Demand Driven Sales and Operations Planning
Tactical Configuration and Reconciliation
Tactical Review
Tactical Exploitation
Tactical Projection
Strategic Recommendation
Strategic Projection
Adaptive Sales and Operations Planning
The DDAE Development Path
Stage 1: Operational Efficiency (Cost)
Stage 2: Operational Efficiency (Flow)
Stage 3: DDAE Level I
Stage 4: DDAE Level II
Stage 5: DDAE Level III
Summary
Contribution by Dick Ling
CHAPTER 14
Implications for Technology
Operations and Information Technology—Two Ships Diverging in the Night?
DDMRP Software Compliance Criteria
PART 3 APPENDICES
APPENDIX A
An MRP Example
The Scenario
Simulating the Scenario
APPENDIX B
Simulating DDMRP Buffers
About the Simulation
