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© copyright 2013 Demand Driven Institute, LLC, all rights reserved.
Topic: Demand Driven Master Scheduling
Demand Driven MRP and Master Production Scheduling (MPS)
The Demand Driven Institute (DDI) was founded by Carol Ptak and Chad Smith, co‐authors of the third edition of Orlicky’s Material 
Requirements Planning in order to proliferate and further develop demand driven strategy and tactics in industry enabling a 
companies to transform from “push and promote” to “position and pull.” 
For more information about our mission and how you might get involved, please contact us at:  
A white paper by the Demand Driven Institute
September 2013
Become a part of growing DDMRP community online. Join the official DDMRP LinkedIn Group! 
www.demanddriveninstitute.com
Demand Driven MRP and Master Production Scheduling (MPS)  
Chad Smith and Carol Ptak 
 
What is Demand Driven MRP?  
Demand Driven MRP is a new formal planning and execution method first articulated in the 
third edition of Orlicky’s Material Requirements Planning (Ptak and Smith, McGraw‐Hill, 2011).  
The entire foundation of DDMRP is based upon the connection between the creation, protection 
and acceleration of the flow of relevant materials and information and return on investment.    
 
The DDMRP Pyramid
FLOW
Sales
Orders
Decoupling
Points
Lead
Time
Order
Minimums
Lower
Inventory
High
Service
Fundamental Principal
Fundamental Planning
Changes
New Operational Equation
Elements and Emphasis
Bottom Line Benefits
Without Tradeoffs
Fewer Expedites
Buffer
Status
ROI▲
 
 
Every for‐profit company has the same goal – some form of return on shareholder equity.  
When the flow of relevant materials and information increases return on investment increases.  
Conversely, when processes are drowning in oceans of irrelevant data and materials return on 
investment decreases.  Cash, capacity and space is tied up in unnecessary inventory and 
expedite related expenses are incurred as people attempt to deal with the chronic and frequent 
shortages.  Ultimately, the relevance of materials and information is determined by whether 
there is a real customer demand – a demand that results in actual payment for the effort and 
cash expended.  This last statement has important implications for the subject of this paper. 
 
This whitepaper focuses on the fundamental differences between demand inputs and capacity 
considerations of a DDMRP approach versus a conventional MRP approach.  The purpose of this 
paper is to: 
1. Offer an in‐depth explanation of the impact of Demand Driven MRP (DDMRP) to the 
conventional demand input to MRP systems (Master Production Schedule) 
2. Explain the capacity assumptions and implications of using a DDMRP approach 
3. Present the impact of DDMRP’s execution components the stability and assumptions 
behind an executable master schedule. 
 
Demand Driven MRP (DDMRP) and the Master Production Schedule (MPS) 
© copyright 2013 Demand Driven Institute, LLC, all rights reserved.
Conventional MRP systems take their demand input from what is known as a Master Production 
Schedule (MPS).    The master production schedule is not simply a statement of forecasted 
demand but also considers actual sales orders, capacity and material availability.  The MPS is 
expressed as specific quantities and dates.  Simply put, the definition of the MPS is a statement 
of what we can and will build.  MRP then takes that input and combines it with inventory 
records (on‐hand and open supply) and product structure (Bills of Material) records to generate 
supply order requirements. 
 
Figure 1 is a diagram from Orlicky’s Material Requirements Planning 3/E that shows how the 
MPS fits into the conventional MRP landscape. 
 
External Orders
for Components
Master
Production
Schedule
Independent
Demand
Forecasts
Inventory
Record File
MRP SYSTEM
Product
Structure file
Manufacturing
Execution
System
 
 
Figure 1: The relationship of the MPS in conventional MRP schema 
 
As you can see the demand input for the MPS comes from two sources; Independent Demand 
Forecasts (Planned Orders) and External Orders (Sales Orders).   Traditional MRP will net the 
projected available balance to zero.  If the time that it takes to procure and produce items 
exceeds the Customer Tolerance Time then planned orders must be tied to supply order 
generation.  Safety stock is used to deal with the inherent misalignments in quantity and timing 
created by that direct connection of planned orders to supply order generation.  It should be 
noted that the safety stock level simply becomes the “new zero.”1
 
 
Master Scheduling in DDMRP 
Demand Driven MRP (DDMRP) changes the idea of a conventional MPS.  In DDMRP, the demand 
input is not a statement of what we can and will build but instead it is a statement of what we 
can and will sell.  DDMRP recognizes that there is a SIGNIFICANT difference in the error rates 
associated with planned orders versus sales orders.  Sales orders, in most cases, are “real 
demand”; the equivalent of an un‐cashed check.  Sales orders are the most accurate demand 
signals available, representing actual demand even if the customer changes the requirements.   
 
Figure 2 is an equivalent diagram for the DDMRP approach.  Independent Demand Forecasts are 
connected to the DDMRP approach ONLY through the Planned Adjustment Factors. 
1
Readers should review the technical paper Replenishment Buffers Versus Safety Stock (Ptak and Smith, DDI, 2012)
© copyright 2013 Demand Driven Institute, LLC, all rights reserved.
 
External Orders
for Components
(Sales Orders)
Planned
Adjustment
Factors
Independent
Demand
Forecasts
Inventory
Record File
DDMRP
(Supply Order
Generation and
Execution Alerts)
Product
Structure file
Manufacturing
Execution
System
Buffer Profiles
 
 
Figure 2: The DDMRP schema 
 
DDMRP combines Sales Orders, Planned Adjustments, product structure records, inventory 
records and buffer profiles in order to produce recommended supply orders and execution 
alerts for open supply orders.  Let’s break down each component: 
 
1. External Orders –actual sales order demand allocations or work order demand allocations 
derived directly from actual sales orders.   The DDMRP approach further limits the consideration 
of external orders to qualification criteria that will be discussed later in this paper.   
 
2. Planned Adjustments – In DDMRP, actual demand orders DO NOT consume forecast.  There is 
no demand time fence and planning time fence to consider for forecast consumption. In 
DDMRP, forecasted orders are not placed directly in the demand equation.  Forecasts are used 
in DDMRP but forecasts are not tied directly to order creation.  Instead DDMRP uses forecasts to 
calculate Planned Adjustment Factors (PAF).  The Planned Adjustment Factors raise or lower the 
buffer levels, within specific time ranges, by factoring against Average Daily Usage (ADU).  ADU 
is a primary component to the buffer equation.  The most frequent application of the planned 
adjustment factor is to dynamically adjust buffers for a seasonal business or businesses with 
heavy promotional activity. 
 
Figure 3 depicts a planned adjustment to incorporate a temporary surge in demand either from 
promotional or seasonal activity.  The product’s seasonal profile is displayed in monthly buckets.  
The left Y axis is quantity associated with the buffer levels over the course of the year.  Note that 
the top of the buffer ranges between 700 and around 950.  The right Y axis is the projected 
Average Daily Usage of the product over the course of the year.  Below the monthly numbers is 
© copyright 2013 Demand Driven Institute, LLC, all rights reserved.
the percentage factor that will be applied to ADU within those time buckets thus creating the 
flex (up and down) in the buffer. 
 
1 2 3 4 5 6 7 8 9 10 11
100
200
300
400
500
600
700
800
900
1000
1100
1200
1300
12
Quantity
ADU
20
40
60
80
100
120
140
160
180
1001001001001031181181151101009797PAF % 1001001001001031181181151101009797PAF %
 
Figure 3: A Planned Adjustment Factor analysis 
 
When these planned adjustments are applied, the buffer flexes up or down thus changing the 
relative available stock position of the buffer.  An available stock position of 100 for a part with 
no planned adjustment factor is relatively different than an available stock position of 100 for 
the same part with planned adjustment factor of 125%.   When the buffer flexes up,  a 
recommended supply order is generated ONLY if the available stock position after the flex is 
below the top of the yellow zone. 
 
Planned Adjustment Factors are the primary interface point between S&OP activities and 
DDMRP. The application and management of Planned Adjustment Factors is a significant topic 
and will be tackled in future white papers. 
 
3. Buffer Profiles – DDMRP assigns parts chosen for strategic replenishment to families or groups 
based on common attributes.  At a minimum, these attributes are lead time (long, medium, 
short), variability (high, medium, low), part type (made, bought, distributed) and significant 
order multiple or cycle.  The buffer profile the part is assigned to affects the relative distribution 
of the red, yellow and green zones of that part’s buffer.   
 
Figure 4 depicts three different parts with the same Average Daily Usage and lead time but with 
different profile assignments based on variability (measured through Coefficient of Variability 
(CoV))2
 and minimum order quantity (MOQ). 
 
The differences in the total buffer and the zonal distributions of the buffer depend on the part 
buffer profile assigned.   In scenario A, the profile corresponds to a buffer profile for bought or 
purchased items (Buy), with a long lead time (Long) and with low variability (Low).  This results 
in the lowest total top of buffer (called Top of Green) of 340 units (60 + 200 + 80).  In scenario B 
2
CoV is defined as standard deviation divided by the mean
© copyright 2013 Demand Driven Institute, LLC, all rights reserved.
the part variability is dramatically increased resulting in an increased Red Zone and a larger Top 
of Green.  In scenario C the part has a significant Minimum Order Quantity (MOQ) which 
determines the size of the green zone.  Not only is this buffer Top of Green larger, this buffer 
will have a much longer average order frequency duration (12 days on average).  Average order 
frequency is determined by dividing the Green Zone by the ADU. 
 
20 daysLead Time
CoV = .37Variability
10ADU
NoneMOQ
Buy, Long, LowBuffer Profile
20 daysLead Time
CoV = .37Variability
10ADU
NoneMOQ
Buy, Long, LowBuffer Profile
20 daysLead Time
CoV = 3.37Variability
10ADU
NoneMOQ
Buy, Long, HighBuffer Profile
20 daysLead Time
CoV = 3.37Variability
10ADU
NoneMOQ
Buy, Long, HighBuffer Profile
20 daysLead Time
CoV = .37Variability
10ADU
120MOQ
Buy, Long, Low, MOQBuffer Profile
20 daysLead Time
CoV = .37Variability
10ADU
120MOQ
Buy, Long, Low, MOQBuffer Profile
200
60
80
200
60
80
200
60
120
200
60
120
200
80
120
200
80
120
A
B
C
A B C
 
 
Figure 4: Same lead time and usage, different buffer profile 
 
For more information on the equations behind these buffers readers should review the white 
paper Demand Driven MRP Buffer Explanation and Simulation (Smith, DDI, 2013). 
 
4. Inventory Record File – standard on‐hand and open supply/on‐order records. 
 
5. Product Structure File – standard bill of material records. 
 
The Available Stock Equation 
These five inputs are combined to generate recommended supply orders through an  “available 
stock equation” set against a part’s specific buffer level and composition.  The available stock 
equation is unique to DDMRP.   
 
For end items the equation is: 
 
(On‐hand qty) + (On‐order qty) – Qualified Sales Order Demand = Available Stock Position 
 
For purchased and intermediate items the available stock equation is: 
 
(On‐hand qty) + (On‐order qty) – Qualified Work Order Demand = Available Stock Position 
 
Demand qualification is limited to orders that are past due, orders that are due today and orders 
that qualify as a demand “spike”.  Spike qualification occurs by establishing an “order spike 
horizon” and looking for the summation of sales orders in daily buckets against a particular 
component/SKU that exceeds a defined “spike” threshold within the horizon.  The horizon is 
usually set to at least one ASR Lead Time.  ASR Lead Time is defined as the summation of 
© copyright 2013 Demand Driven Institute, LLC, all rights reserved.
manufacturing lead times on the longest (measured in time) un‐buffered sequence in a 
product’s bill of material – it is an innovation unique to DDMRP. 
 
Figure 5 depicts the spike qualification process.  In this example the order spike horizon is seven 
days and there are no past due orders.  The order spike threshold is set at 500 units.  There are 
orders due today totaling 400 units – those orders are qualified as demand.  Additionally, there 
is a qualified group of orders for 1000 units that qualify as a spike that has just entered the 
order spike horizon.  These orders are due six days after today.  The entire amount of that spike 
is qualified as demand.  In this example, today’s demand element of the available stock equation 
is 1,400 units. 
 
 
400
1000
Order Spike Horizon
Order Spike Threshold = 500
Today’s demand component of the available stock
includes today’s demand plus the qualified order spike
RedYellowGreen
▲
Today Day 2 Day 3 Day 4 Day 5 Day 6 Day 7
 
Figure 5: Demand qualification including spike identification 
 
For intermediate components, the assumption is that the work orders originated from a supply 
order from a strategic stock buffer position.  The qualification of work order demand adheres to 
the same criteria as described above for sales orders. 
 
Short Range Capacity and Materials Considerations 
Any type of master scheduling (including DDMRP) makes assumptions about capacity and 
material availability.  In the more complex and volatile environment of the 21st
 Century, 
conventional MRP’s master scheduling assumptions are becoming more unrealistic. One critical 
assumption of traditional MRP is that all components are available at time of order release.  This 
is called full allocation.  While conventional MPS and MRP attempt to make this occur, the 
combination of planned orders with certain deficiencies inherent in conventional MRP make this 
© copyright 2013 Demand Driven Institute, LLC, all rights reserved.
assumption tenuous at best.  DDMRP removes these factors and assures improved flow of only 
relevant materials and information. 
 
At this point a critical difference between MRP and DDMRP is worth noting.  For strategically 
replenished positions, DDMRP is designed to NEVER net the projected available balance to zero.  
DDMRP specifically plans to have inventory available in order to maintain the integrity of the 
buffer at the strategic decoupling point.  It is the existence of these buffers, when placed 
properly, that allows lead time compression to be consistent with customer tolerance time. 
   
These buffers also have implications for capacity consideration and material availability. 
 
The existence and management of these strategic buffer positions provides for short range 
capacity and materials considerations.  With regard to materials, if the buffers are designed to 
always have stock based on an appropriate buffer profile then the assumption that material is 
available is generally correct (especially when order spike qualification is taken into account).  
For required materials or components that are not buffered, ASR Lead Time is used to create a 
realistic date for availability.  The lack of the ability to recognize ASR Lead Time is one of the 
critical flaws of the conventional MRP order release calculation. 
 
With regard to capacity, the buffers of manufactured parts represent stored capacity.  This can 
act as a short range capacity buffer to minimize capacity contention as buffers are replenished.  
Thus we can make an assumption that when strategic manufactured items are buffered, 
capacity is available in the short run (in the form of stock).   
Enabling Master Scheduling Assumptions with Robust Execution Elements 
Now let’s turn our attention to execution.  In DDMRP “planning” and “execution” are distinctly 
different tasks.  See Figure 6 below.  Planning is defined as tasks associated with generating new 
supply order requirements while execution is defined as tasks associated with managing open 
supply order requirements. 
 
Demand Driven Material Requirements Planning
Strategic
Inventory
Positioning
1
Buffer Profiles
and Levels
2
Dynamic
Adjustments
3
Demand
Driven
Planning
4
Visible and
Collaborative
Execution
5  
 
Figure 6: The five components of DDMRP 
 
Through an array of execution alerts, DDMRP reinforces the assumptions contained in a reliable 
master schedule – that planned releases and order synchronization will happen as planned.   
The existence of these execution alerts dramatically increases visibility and focus to potential 
materials, capacity and synchronization problems allowing for preventive and/or corrective 
actions in order to maintain plan and flow.  Conventional MRP’s lack of integrated execution 
management tools directly contributes to an often unrealistic or unachievable master schedule. 
 
© copyright 2013 Demand Driven Institute, LLC, all rights reserved.
There are 4 primary alerts used in DDMRP.  Two of these alerts (Current On‐Hand Alert and 
Projected Buffer Status Alert) are designed to be used exclusively with strategically replenished 
items. The Material Synchronization Alert is applicable to both strategically replenished and 
standard non‐buffered items.  The final alert is designed to be used for Lead Time Managed 
(strategic non‐buffered) items.  Figure 7 depicts the four primary execution alerts of DDMRP. 
 
 
DDMRP Execution
Alerts
Current On-
Hand Alert
Project Buffer
Status Alert
Material
Synchronization
Alert
Lead Time Alert
Used for buffered items Used for BOTH buffered
and non-buffered items
Used for Lead Time
Managed Parts
 
 
Figure 7: The four primary execution alerts of DDMRP 
 
Current On‐Hand Alert 
The Current On‐Hand Alert is designed to alert planners and buyers to current on‐hand 
problems with strategic replenishment buffers.  The alert uses color as a general reference and 
the percentage of a buffer’s remaining red zone as a discrete reference to generate priority 
status for a SKU and across SKUs.  Below is an example of what a Current On‐Hand Alert screen 
might look like.  It represents the minimum amount of information necessary to display a 
Current On‐Hand Alert.   
 
120033567%PPL
60013545%SAJ
4505427%PPG
Open SupplyOH QuantityOH StatusPart #
120033567%PPL
60013545%SAJ
4505427%PPG
Open SupplyOH QuantityOH StatusPart #
 
 
The percentage in the status column is determined by dividing the on‐hand quantity by the top 
of the red zone of the buffer.  In this case part # PPG appears to be the highest priority.   With 
only 54 units in on‐hand inventory (OH Quantity) it has only 27% of the buffer’s red zone 
remaining.  This means PPG’s top of red is 200 units (54/200 = .27). 
 
This alert is intended to direct planner and buyer attention to the parts with the most severely 
eroded buffers to highlight the supply orders associated with them for potential expedite.  In 
this way planners and buyers receive a quick and easy signal of where and how to focus their 
limited time.   
 
Projected Buffer Status Alert 
© copyright 2013 Demand Driven Institute, LLC, all rights reserved.
The Projected Buffer Status Alert is designed to warn planners and buyers about potential buffer 
depletions in the future based on the inventory on hand, the expected rate of use and known 
sales order demand over its ASR Lead time.  Below is an example of what a Projected Buffer 
Status Alert screen might look like.  
 
1531226600135SOWD in 5 days!SAJ
5216945054Stock-Out in 6 daysPPG
Work Order DemandASRLTADUOpen SupplyOH QuantityProjected StatusPart #
1531226600135SOWD in 5 days!SAJ
5216945054Stock-Out in 6 daysPPG
Work Order DemandASRLTADUOpen SupplyOH QuantityProjected StatusPart #
 
 
This alert is prioritized by the short term projected future buffer status (one ASRLT).   It takes the 
quantity on‐hand and compares it against the ADU to compute a projected length of coverage 
until a stock out occurs.  A further level of refinement compares the total known sales or work 
order demand, the release dates associated with those demand orders and the incoming 
planned supply order receipts over the same time frame to identify projected days of net 
negative on‐hand quantities.  When a net negative position is projected using actual demand 
allocations, a situation called stock‐out with demand (SOWD) is displayed.  DDMRP clearly 
makes a distinction between SOWD and simply being stocked out.  Projected SOWD is always 
prioritized ahead of projected stock outs. 
 
In the above example part SAJ is projected to be in a stock‐out with demand (SOWD) status in 5 
days.   Notice the on‐hand quantity is 135 units and the ADU is 26, meaning the buffer has 5 
days of coverage remaining under average demand scenarios.  Actual demand, however, 
exceeds average calculated usage within the same time frame and a supply order is not due 
within that period.  There is total open supply of 600 units that are candidates for potential 
expedite. 
 
Something to keep in mind about potential open supply expedites under DDMRP is there are 
often multiple incoming orders against a position.  DDMRP attempts to order as frequently as 
possible up to the point where the ordering becomes onerous or infeasible.  Expediting smaller 
orders is usually far more successful than trying to move in large orders.  
 
Material Synchronization Alert 
Material Synchronization Alerts (MSA) can involve any part (buffered or non‐buffered).  A 
Material Synchronization Alert is designed to alert buyers and planner to misalignment between 
any component availability and any parent release date and quantity needs.  If the component 
quantity is expected or projected to be insufficient to meet a parent order demand allocation 
then an alert is triggered.  Below is an example of what an MSA report, at a minimum, should 
provide. 
 
2000
100
1000
Parent
Requirement
45002000SAR128-994May 11PPL127-799
25020FPG129-342May 10SAH128-045
4500220SAK128-775May 10PPL127-680
Component
Open Supply
ShortageParent Part #Parent Order
Effected
DatePart #Order #
2000
100
1000
Parent
Requirement
45002000SAR128-994May 11PPL127-799
25020FPG129-342May 10SAH128-045
4500220SAK128-775May 10PPL127-680
Component
Open Supply
ShortageParent Part #Parent Order
Effected
DatePart #Order #
 
 
The MSA report is sequenced by date – the more imminent the synchronization problem, the 
higher the priority.  PPL appears twice on the report because it is either in short supply or its 
© copyright 2013 Demand Driven Institute, LLC, all rights reserved.
open supply has been delayed.  It is a common component to at least two sub‐assemblies (SAK 
and SAR).  The most immediate priority is PPL’s impact on work order #128‐775.  The work order 
requires a total of 1000 PPLs but there will be only 780 available.  The next day work #128‐994 
requires 2000 PPLs and there will be none available.  There is, however, a total of 4500 units of 
PPL in open supply that the buyer can choose from to attempt to expedite.   
 
This alert allows the buyers and planners advanced warning of material/component constraints 
across product structures and orders.  The better the visibility to these warnings the more 
options are at their disposal to deal with the potential conflicts.  The various alerts have 
connections between each other.  For example if PPL was a buffered item it would also appear 
on the Projected Buffer Status Alert as SOWD on May 10. 
 
Lead Time Alert 
In DDMRP the Lead Time Alert is used exclusively with strategic non‐buffered parts called Lead 
Time Managed (LTM) parts.  These are parts that are not demanded in sufficient quantity to be 
strategically stocked (including Engineered to Order items) but when required tend to be critical 
to the success of the overall project or assembly.  The lead time alert is designed to provide a 
radar screen for planner and buyers of the impending due dates of these parts.  This radar 
screen is a timed and structured status update to identify potential problems sooner and 
establish a documented order history trail. 
 
6 days 6 days 6 days
lead time alert zone = 18 days
total part lead time = 54 days
due date
release
date
Part #: PPO
The above graphic demonstrates the notion of a LTM part.  Part PPO has been declared LTM.  It 
has a 54 day lead time.  The last third of its lead time is the lead time alert zone (18 days) and is 
divided into three equal portions of 6 days.  Each of these portions is represented by a different 
color designation.  Green is the farthest away from the due date.  18 days from being due the 
part enters the green zone of the lead time alert zone.  It remains in the green zone for 6 days 
until day 12 when it passes to the yellow zone.  Every time a LTM part enters a new color zone a 
Lead Time Alert is issued to the planner or buyer responsible for the part.  The planner or buyer 
is expected to follow up on the part and input a note regarding its status.  Below is an example 
of a Lead Time Alert report. 
 
No
No
Yes
Current?
22May 30PPZ427-700
20May 28PPY347-055
2May 10PPO229-681
Days LeftDue DatePart #Order #
No
No
Yes
Current?
22May 30PPZ427-700
20May 28PPY347-055
2May 10PPO229-681
Days LeftDue DatePart #Order #
 
© copyright 2013 Demand Driven Institute, LLC, all rights reserved.
The report will list the order numbers under a buyer or planner’s control that are within their 
respective lead time alert zones.  Order # 229‐681 is in the red zone.  It is not late; its due date is 
simply imminent.  The column “Current?” is meant to distinguish parts whose status has been 
updated inside the current color zone.  Neither 347‐055 nor 427‐700 have had a status note 
placed against the zones they are currently in. 
 
The existence of these alerts directly deals with an inherent problem with MRP.  MRP is often 
described as a binary system.  A part is either “OK” or “not OK”.  In other words, you either have 
a recommendation for action or you don’t.  To make matters worse, traditional MRP commonly 
gives conflicting action messages for the same part.  Moreover MRP makes no relative priority 
differentiation between parts.  Every day planners and buyers are drowning in action flags and 
messages that are both inconsistent and/or irrelevant.  Planners know some of the flags are 
important and still some matter more than others.  Getting clarity on relative priority for 
managing open supply in conventional MRP is often a time consuming task and usually involves 
spreadsheets, a lot of intuition and experience and even a little luck.  The execution tools 
inherent in DDMRP directly address these current MRP shortfalls. 
 
Summary 
DDMRP fundamentally changes the notion of a conventional MPS.  The DDMRP method 
provides inherently more accurate demand signals   It creates an environment where the 
material and capacity assumptions in the plan are fundamentally more sound and the execution 
facilities and visibility to protect the plan against disruption.   
 
Medium and longer range capacity and material availability concerns will be addressed in our 
next paper discussing the interaction between DDMRP and S&OP. 
 
Become a Certified Demand Driven Planner (CDDP) 
The Certified Demand Driven Planner™ Program was created by a global 
partnership between the International Supply Chain Education Alliance 
(ISCEA) and the Demand Driven Institute (DDI).  Internationally accredited 
by the IISB, the purpose of the CDDP™ Program is to educate operations 
and supply chain personnel on the methods and applications of Demand 
Driven Material Requirements Planning (DDMRP).
 
CDDP™ sessions are held at various locations around the world.   
 
NEW Online CDDP Program!, Did you know there is a new online version 
of the CDDP™ Program?  The next online session starts September 25th
. 
 
Registration, Course Content and Class Schedules Available Here 
 
Upcoming Book that Incorporates DDMRP Principles 
In the Fall of 2013 look for the newest Demand Driven book called Demand 
Driven Performance – Using Smart Metrics by Debra Smith and Chad Smith.
Demand Driven Performance details why the outdated forms of 
measurement are inappropriate for our current circumstances and reveals 
© copyright 2013 Demand Driven Institute, LLC, all rights reserved.
an elegant set of global and local metrics to fit today’s demand driven world. The book shows 
how to minimize the organizational and supply chain conflicts that impede flow, and eventually, 
corporate success. 
 
Available for pre‐order at Amazon!
© copyright 2013 Demand Driven Institute, LLC, all rights reserved.
© copyright 2013 Demand Driven Institute, LLC, all rights reserved.
About the Authors
 
Carol Ptak is currently a partner with the Demand Driven Institute, and was 
most recently at Pacific Lutheran University as a Visiting Professor and 
Distinguished Executive in Residence.  Previously, she was vice president 
and global industry executive for manufacturing and distribution industries
at PeopleSoft where she developed the concept of demand drive
manufacturing (DDM).  Ms. Ptak spent four years at IBM culminating in the 
position of SMB segment executive.  
 
n 
cptak@demanddriveninstitute.com 
 
 
Chad Smith is the co‐author of both Orlicky’s Material Requirements Planning, 
Third Edition (Ptak and Smith, McGraw‐Hill, 2011) and the upcoming 
Demand Driven Performance – Using Smart Metrics (Smith and Smith, 
McGraw‐Hill, 2013).  In 1997 Chad co‐founded Constraints Management 
Group, LLC (CMG).  Since the late 1990’s Chad and his partners at CMG have 
been at the forefront of developing and articulating the concepts behind 
Demand Driven MRP as well as building DDMRP compliant technology 
(Replenishment+®).  Additionally, Chad serves as the Program Director for 
the International Supply Chain Education Alliance’s Certified Demand Driven 
Planner (CDDP) Program. csmith@demanddriveninstitute.com 
 
 
 
Other white papers available at www.demanddrivenmrp.com: 
 
Lean Finds a Friend in DDMRP
Standing On the Shoulders Of A Giant
New Rules for the 21st Century Supply Chain
Replenishment Buffers vs. Safety Stock
The State of Demand Driven MRP
The Average Question
DDMRP Buffer Explanation and Simulation
 
 
 
 
 
 
 
 
 
 
www.demanddriveninstitute.com
“Certified Demand Driven Planner” and “CDDP” are trademarks of the International Supply Chain Education Alliance 

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