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Contents

Foreword

Introduction

Definitions in This Book

About the Authors

About the Demand Driven Institute

Acknowledgments

PART 1

The Current Planning Challenge

CHAPTER 1

The Objective and History of Planning

Why Do We “Plan”?

A Brief History of Planning

The Need for Flow—The True Purpose of Planning

But Something Is Very Wrong

Variability and Flow

The Rise of Complexity and Volatility

The Case for Relevance

Summary

CHAPTER 2

How Conventional Planning Works

The Conventional Planning Schema

Determining Quantity Requirements

Determining Timing Requirements

Gross Requirements

Net Requirements

The Perfect Plan

Executing Perfection—The User Experience

Distribution Requirements Planning

Connecting MRP and DRP

Summary

CHAPTER 3

The Core Problem of the Bullwhip

Distortions to Relevant Information

Distortions to Relevant Materials

Batching Policies—Amplifying Distortions

The Failure of Safety Stock

Summarizing the Challenge

PART 2

A New Direction

CHAPTER 4

The Power of Decoupling

What Is Decoupling?

The “Decoupled Explosion”

Restoring the Promise of Planning

Decoupling Point Success Factors

Can Conventional Planning Decouple?

Mitigating the Bullwhip Effect

Summary

CHAPTER 5

Demand Driven Material Requirements Planning

The Components of DDMRP

DDMRP Results

Summary

CHAPTER 6

The Quest for More Relevant Information

Striving for Coherence

Prerequisites for Relevant Information

Convention’s Failure with the Prerequisites

Summary

CHAPTER 7

The Demand Driven Adaptive Enterprise Model

The DDAE Model

The DDAE Model and Relevant Information

Adaptive Sales and Operations Planning

The DDAE Development Path

Software Implications

Summary

APPENDIX A

Simulating DDMRP Performance Against Lean and MRP II

By Dr. Romain Miclo, Dr. Matthieu Lauras, Dr. Franck Fontanili, Dr. Jacques Lamothe, and Dr. Steven A. Melnyk

Overview

Research Methodology

Developing the Simulation Model

Simulation Practices

The Experimental Design

Data Generation

Method of Analysis

Analysis and Results

About the Authors: The Research and Review Team

APPENDIX B

An Inquiry into Queue Dynamics and Lead Times in Supply Chains

By Alfredo Angrisani

Opening a Pandora’s Box

Summary

About the Author

APPENDIX C

Why the Demand Driven Adaptive Enterprise Model Is Disruptive

By David Poveda

Defining Disruptive

The DDAE Model as Disruptive

Additional Insights About the DDAE Model

About the Author

APPENDIX D

Demand Driven Answers for Accountants

By Debra Smith and Chad Smith

Introduction

About the Questions

Webinar Questions from the Audience

About the Authors

APPENDIX E

The Story Behind Demand Driven Material Requirements Planning

By Chad Smith

Oregon Freeze Dry: The Lightbulb Moment

The Charles Machine Works: The Power of Decoupling

Jamestown Container Companies: Bringing the Solution to the Customer

Roseburg Forest Products: The Power of Vertical Integration and Shared Materials

LeTourneau Technologies, Inc.: Modern Buffer Design, Decoupled Lead Time, and the Matrix BOM Analysis

The Meeting: A Problem and Solution Come Together

Unilever: Prioritized Share, the Hybrid, Planned Adjustments, and the Birth of DDS&OP

Notes

Index

Precisely Wrong: Why Conventional Planning Systems Fail

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