DDMRP - "Where's the Beef"

By Henry Canitz: Founder & Principal NITZ Supply Chain Consulting

I’ll admit it, I spent plenty of time in front of the TV during my formative years. Hard to believe, but back then, there were no computers, video games, or mobile devices. Our only in-home electronic entertainment? Broadcast TV. If the rabbit ears were positioned just right, we had maybe ten low-definition channels to choose from. But with fewer options, some shows—and even commercials—became truly unforgettable.

One such ad was Wendy’s famous “Where’s the Beef?” commercial from 1984. A feisty grandma, staring at a disappointingly tiny hamburger patty, shouted the now-iconic phrase that quickly became a catch-all for unmet expectations.

That same question popped into my head while researching Demand Driven Manufacturing Resource Planning (DDMRP).

DDMRP: A Revolutionary Approach?

Proponents claim DDMRP is a “new and revolutionary planning method.” But in reality, pull-based replenishment has been around for decades. Basing near-term inventory decisions on demand signals like customer orders or POS data isn’t new - it’s been a core feature of advanced planning and scheduling (APS) systems for years.

A key DDMRP claim is that it eliminates the need for forecasts, instead relying solely on sales orders for replenishment planning. But there’s a fundamental problem: Most product lead times are longer than customer replenishment lead times. The math simply doesn’t add up.

DDMRP also claims to be “the only approach that effectively synchronizes supply and demand across a complex and volatile supply network.” However, it only determines where products should be stocked—not how much to stock. Its buffer sizing relies on simplistic, backward-looking logic—essentially a naïve forecast disguised by inventory zoning.

So… Where’s the Beef?

The benefits of DDMRP have been overstated, exaggerated, and poorly validated. Many success stories compare it to basic MRP systems, which sets the bar extremely low—like boasting you play piano better than a fifth grader.

Yes, DDMRP can reduce inventory and lead times if your production lead times are short enough to match customer demand fulfillment. But for most companies, APS systems already deliver greater value. The biggest wins with DDMRP come from companies moving away from outdated, spreadsheet-based MRP—not those already leveraging advanced planning and optimization.

The Real Question

DDMRP may be useful in make-to-order environments or businesses that can source everything locally and manufacture within customer lead times. But that describes only a small fraction of manufacturing and procurement operations.

Perhaps that’s why Gartner advocates algorithmic planning for optimizing complex supply chains.

My advice? Don’t toss out your MRP and APS solutions just yet. Instead, ask yourself:

👉 Can you reduce your longest production lead times enough to meet current and projected customer order lead times?

If not, the benefits of DDMRP may be very limited.

#SupplyChain #DDMRP #Manufacturing #Planning #Forecasting