Dynamic Dispatching of DDMRP Replenishment Orders

The Demand Driven Material Requirements Planning (DDMRP) is a production control system originally tailored for the VUCA world. Despite research increasingly focusing on the dynamic aspects of this production control system, it has failed to address important execution aspects. This study bridges the literature gap by focusing on Demand Driven Planning and Execution, particularly the dispatching rules. The use of static dispatching rules, such as the one proposed in DDMRP, does not respond to the volatility and uncertainty of the VUCA world. Through the simulation of a six-machine flow shop, we investigate several dispatching rules to assess their impact on the system stability and service level. Our findings reveal that, when compared to a static dispatching rule, the use of a dynamic dispatching rule in the DDMRP execution significantly improves the service level and reduces the number of stockouts and the time to fulfill backorders.