Demand-Driven Material Requirements Planning review A case study of durable products and uneven demand in Toto Vietnam

Abstract

In the current VUCA world, supply chain disruption is a viral concern to businesses and experts. How to make an effective and efficient plan and by which approach, these questions are highlighted during trade development. Just in time, Lean methods and MRP are familiar to planners, managers, and scholars, and these are applied to millions of companies as their leverages. Meanwhile, there are disadvantages in risk and uncertainty as in setting up a buffer level. Demand-driven material requirements planning (DDMRP) is a new approach strategy applied in international corporations, which has demonstrated advantages compared with previous approaches in setting up cushion levels and avoid in astonishing disruptions. In this case study about ToTo Vietnam, we investigate how the material requirements planning strategy is applied and its benefits and drawbacks. After that, we will continue to analyze the DDMRP approach in the company to contrast and clarify whether they are effective in this case study. This study could be a reference for the company to drive its organization in the current complex supply chain and in the context of expanding operations.