Traditional material planning and control system (ERP/MRP and distribution requirements planning systems) are systems in which detailed forecasts are used to procure needed materials and push manufacturing orders through the production and distribution system to the point of consumption. This system is typically called “Push and Promote”. These legacy rules and systems are causing enormous amounts of friction and compromises within and between manufacturers in today’s more complex and volatile supply chains.
Most Purchasing and Materials Managers feel like they are caught between a rock and a hard spot. Shortages of critical items must be eliminated while at the same time inventory levels must be dramatically reduced and expedite related expenses minimized. In today’s economic climate this conflict is more urgent than ever. Unfortunately, most of the today’s available tool sets are insufficient to effectively resolve this conflict in the face of increasing demand and supply volatility and variability. Learn about the shortcomings of tools like MRP and Demand driven MRP is based on the best attributes of Six Sigma, Lean, TOC and MRP. This integrated but still intuitive approach will give lower inventories, better customer service, better use of capacity and lower supply chain risk.