Buffers for Dummies

 

A Demand Driven Buffer, what's that? 

In the Demand Driven jargon we talk about "buffers" of different types. What are they used for? How do they work? This post introduces some basic concepts, which are explored in detail in the Demand Driven Institute's training courses. 

DDMRP vs MRP: Long Live Independence

 

In one of my previous lives, I was responsible for a supply chain where most of the suppliers were in Asia, supplying our European factories and distribution centres by sea. 

Historically our service was poor and our inventory was overflowing everywhere. Our Chinese or Thai suppliers only accepted monthly orders, and imposed at least 2 months of firm orders on their production plan - our [...]

DDMRP for the Automotive Industry: Beyond Kanban

 

Since the 1990s, the Western automotive industry has widely adopted the practices derived from the Toyota production system. 5S, continuous improvement is the daily life of automotive suppliers.

Pull flow - formerly known as Just in Time - is at the heart of these practices. It is facilitated by the fact that the automotive upstream supply chain is clocked by the car manufacturers' [...]

Pull Flow for All

 

Pull Flow, an Old Story... 

In 1987, as a young engineer at Philips, I had the chance to take part in a study trip to Japan and visit about ten companies there. In most of them you could see in each workshop card boards. In one of the factories I asked our guide what it was. He was astonished that I asked the question - it was so obvious: it is a Kanban board, to replenish supplies. That is  [...]

DDMRP in the retail trade on promotional items – lessons learned.

 
"I understand that we should replenish our points of sale with DDMRP for permanent products, but can you also do it for promotional products?" Our client asked us.
“Uh yeah, well,  it should probably work, but lets think about it a little bit...”
 
A year later, after multiple simulations based on sales history, and the implementation of a dozen promotional campaigns, the [...]

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