Strike a Strategic Inventory Balance
Demand driven material requirements planning (DDMRP) is the next evolution in materials requirements planning. DDMRP is also the latest feature in Microsoft Dynamics 365 Supply Chain Management. Learn more about DDMRP and Microsoft Dynamics 365 in this Microsoft blog article.
DDMRP is a multi-echelon planning and execution method designed to enhance the flow of relevant information in supply chains. It strategically decouples inventory from sales forecasts and introduces a new calculation for lead times. This approach aims to address the inefficiencies of traditional MRP, which often leads to excess inventory or stockouts.
What are the benefits of using DDMRP?
Organizations using DDMRP can see 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 impacting service levels. Additionally, it helps lower total operating costs by reducing false signals and schedule disruptions.
How does DDMRP integrate with Dynamics 365?
DDMRP is integrated into Microsoft Dynamics 365 Supply Chain Management as a preview feature. It works alongside other enhancements like the Planning Optimization Add-in, which reduces planning runtimes from hours to minutes and allows for priority-based planning. This integration helps organizations create more predictive and resilient supply chains while improving overall operational efficiency.

Strike a Strategic Inventory Balance
published by CETAS Information Technology Pvt Ltd
CETAS Information Technology is a leading Microsoft Gold Partner, Solutions Partner for Business Applications, and ISV Provider. Headquartered in Chennai, India with offices in Bangalore, Dubai, CETAS, a Microsoft Technology focused Partner delivers consulting, Implementation, Training, Upgrade, Customization, Product Development, and Support Services that aims to help clients drive business value and innovation. CETAS empowers organizations around the world to digitally transform and drive business value and innovation on Microsoft Dynamics 365 Platform.