What planning tool prioritizes sales order forecasting and strategically plans inventory buffers?

Question

Options

• AMRP simulation and resolution
• BDemand-driven MRP (DDMRP)
• CConstraint-based planning (PP/DS)
• DBackorder processing (BOP)

• A
  4% (1)
• B
  91% (21)
• D
  4% (1)

Explanation

Demand-Driven MRP (DDMRP) is correct because it explicitly decouples supply chains using strategically positioned inventory buffers - "buffer zones" - to absorb demand variability while prioritizing replenishment based on actual sales order consumption and forecast signals.

• A (MRP simulation) is a what-if analysis tool for modeling plan changes, not a buffering or demand-prioritization methodology.
• C (PP/DS constraint-based planning) optimizes production schedules against capacity and resource constraints, focusing on throughput rather than inventory buffering strategy.
• D (BOP - Backorder Processing) handles allocation of available stock to existing backlogged orders - it reacts to shortages rather than proactively planning buffers.

Memory tip: Think "DDMRP = Demand Driven = Decoupling buffers" - the three D's remind you it's the method that drives replenishment from real demand while decoupling supply variability through strategic stock buffers.

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