Widget Simulation Results
Gazoonk Simulation Results
Simulating the Impact of Minimum Order Quantities
Summary
About the Author
APPENDIX C
Applying DDMRP to the Apparel Retail Environment
The Need for a Retail Application of DDMRP
A Retail Apparel DDMRP Example
Special Characteristics and Challenges of the Apparel Retail Environment
The Proposed Model
Retail DDMRP Buffer Zone Considerations
Realized Results
About the Author
APPENDIX D
Demand Driven MRP Dictionary
APPENDIX E
The Innovations of DDMRP
Endnotes
References
Index
When I was asked to help write the chapter on S&OP for this book, I was complimented and eager to make a contribution. With the development of DDMRP and now the writing of this book, Ptak and Smith have broken through common practice to bring common sense to supply chain management.
If your company is facing variability and uncertainty across your supply chain and the future looks little like the past, then this book holds the answer. DDMRP represents the future of planning in today’s complex and volatile supply chains. Inherent flaws in the traditional planning approaches are exposed and resolved for today’s complex adaptive supply chains. With the Demand Driven Adaptive Schema and the pivotal position of Demand Driven Sales and Operations Planning, this is not just a better way to plan; it is a better way to run an organization in today’s hypercompetitive environment. Operations and strategy can now easily and realistically be connected bi-directionally, allowing both to adapt to critical changes for the best return on shareholder equity.
This book is the ultimate reference for this new way of life across a dynamic adaptive supply chain.
Dick Ling
S&OP Consultant
Author of Orchestrating Success
This book will use two sources of definitions. All known and accepted terms that are not new with the advent of Demand Driven Material Requirements Planning (DDMRP) will be defined using definitions from the fourteenth edition of the APICS Dictionary. The authors thank APICS for its support of this project. Since 1957, APICS has been the premier professional association for supply chain and operations management and the leading provider of research, education, and certification programs that elevate supply chain excellence, innovation, and resilience.
For terms that are new with the advent of DDMRP, the authors have created a dictionary specific to DDMRP. This dictionary can be found in Appendix D of this book. Translated versions of this dictionary in multiple languages can be found in the download section at www.demanddriveninstitute.com.
This is not a book about the intricacies of traditional Materials Requirements Planning (MRP). In 2011, at the request of McGraw-Hill, the authors wrote Orlicky’s Material Requirements Planning, third edition. That book was 542 pages and provided an expansive view of conventional planning tactics that were born in the 1950s, codified in the 1960s, and commercialized in the 1970s. That book also devoted nearly 100 pages to an emerging alternative method of formal planning and execution—Demand Driven Material Requirements Planning (DDMRP). This book is entirely about that alternative method.
This book will provide an extensive blueprint for DDMRP. It is the authors’ intention that this text will serve the same purpose as the first MRP book written by Joe Orlicky in 1975 by ushering in a new era in planning and execution methodology, rules, and tools. The body of knowledge of this alternative method is advancing rapidly and gaining acceptance worldwide. The authors hope that this book will open the door for many other books on specific aspects, applications, and extensions of this method.
Contact the authors at [email protected].
Chad Smith
Chad Smith is the coauthor (with Carol Ptak) of the third edition of Orlicky’s Material Requirements Planning and the coauthor (with Debra Smith) of Demand Driven Performance: Using Smart Metrics. He is a cofounder of and partner in the Demand Driven Institute, an organization dedicated to proliferating demand driven methods throughout the world. Mr. Smith serves as the Program Director of the International Supply Chain Education Alliance’s Certified Demand Driven Planner Program.
In 1997, Mr. Smith cofounded Constraints Management Group (CMG), a services and technology company specializing in demand driven manufacturing, materials, and project management systems for midrange and large manufacturers. He served as Managing Partner of CMG from 1998 to 2015. Clients, past and present, include Unilever, LeTourneau Technologies, Boeing, Intel, Erickson Air-Crane, Siemens, IBM, The Charles Machine Works (Ditch Witch), and Oregon Freeze Dry. Mr. Smith is also a certified expert in all disciplines of the Theory of Constraints, studying directly under the tutelage of the late Dr. Eli Goldratt.
Chad Smith makes his home in Wenatchee, Washington, with his wife, Sarah, and two daughters, Sophia and Lily.
Carol Ptak
Carol Ptak is currently a partner with the Demand Driven Institute and was previously a Visiting Professor and Distinguished Executive in Residence at Pacific Lutheran University. Before going to academia she was Vice President and Global Industry Executive for Manufacturing and Distribution Industries at PeopleSoft, where she developed the concept of demand driven manufacturing. Ms. Ptak spent four years at IBM Corporation, culminating in the position of Global SMB Segment Executive.
A leading authority in the use of ERP and supply chain tools to drive improved bottom-line performance, Ms. Ptak has an expertise that is well grounded in four decades of practical experience
