What is Demand Driven Planning?
- Demand-driven planning is a method formalized and popularized by the Demand-Driven Institute in response to the limitations of approaches developed over 50 years ago, particularly in the face of increased volatility and complexity.
- It actualizes the MRPII framework with contributions from Lean (decoupling, continuous improvement), and the Theory of Constraints (bottlenecks, systemic thinking).
- It is a planning approach based on actual demand, utilizing buffers positioned at the appropriate decoupling points to reduce lead time and mitigate the bullwhip effect and order nervosity.
- It provides intuitive recommendations and feedback to empower operators.
- It aligns execution with tactical planning and strategy in one framework.