Avoid the “bull whip” effect


When you introduce tentative demand into your planning profile small errors in your forecasts and projections get amplified through all levels of production and become very large errors in your inventory levels. This “bull whip” effect is seen in nearly every traditional planning method and is why the industry is learning that demand driven planning is a superior approach for manufacturing.


DBA replaces forecasts, BOM explosions, blanket orders, shortage reports, and long term planning projections because all of these methods introduce tentative demand and errors that get multiplied through all levels of production.  DBA has a better path forward that has safety built into the item settings instead of relying on the accuracy of forecasts and long term tentative projections.

White Paper - Demand Driven Planning