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Learn Why Conventional Planning is Failing 

the problem

The Basic Planning Problem

At the heart of most supply chains lies a planning tool called Material Requirements Planning (MRP).  Invented in the 1950s, codified in the 1960s and commercialized in the 1970s MRP became THE way of life for supply order generation and synchronization.  What used to take teams of people weeks to plan could be done overnight with incredible precision.  As products and supply chains became more complex this precise synchronization capability seemed more valuable than ever and the potential seemed limitless.


Yet planners and buyers that interact with MRP every day know that something is very wrong.  They may not be able to explain exactly why but they know that if they did exactly what MRP told them to do it would have disastrous consequences for their company and for their career.  So, constant, costly and error prone workarounds and adjustments are made.  Have we all been fooled?  Was the promise of MRP only a mirage? 


What if there was one fatal flaw in MRP that makes it completely incapable of conveying relevant information?  What if correcting this one fatal flaw allowed the promise of MRP to be attained?


A Book About THE Problem in Supply Chain Management Today

Released in December of 2017, this book to exposes the core problem behind the bullwhip and the clear compelling reason for a fundamental overhaul of conventional planning processes.

Visit the book's official website!

Bring the Precisely Wrong workshop to your company!

If you have a team that wants to explore why conventional planning is broken and what you can do about it, we will come to you.  Contact us about options.


Watch this quick video produced by DDI Global Affiliate Camelot Management Consultants about the book Precisely Wrong.  Co-author Carol Ptak explains about the books relationship to the rest of the Demand Driven content.


This video is from the May 2017 Demand Driven Webinar Series.  In this video Carol Ptak And Chad Smith, authors of Demand Driven Material Requirements Planning (Industrial Press, 2017) expose the critical flaw of conventional planning systems that directly leads to the bullwhip effect.

[Run Time (Min.): 57:11]


Carol Ptak from the Demand Driven Institute demonstrates through a simple and realistic exercise just how complicated even the simplest environment can get through conventional MRP rules. You can also download the workbook slides and work the problem along with Carol.  Download the presentation slides in PDF format here.

Course Content

This immersive one day workshop will reveal this fatal flaw and trace its impact to everyday situations encountered by planners and buyers.  Additionally, an elegant solution to overcome this flaw will be discovered.  Participants in this workshop will walk away with a new depth of understanding about conventional planning systems and a list of things they can begin to implement the very next day.

Part 1: The MRP Revolution

  • How MRP Works

  • The New Normal

  • Evidence of a Problem


Part 2: Determining What is Relevant for Planning

  • The Need for Flow


Part 3: MRP and the Bullwhip Effect

  • Distortions to Relevant Information

  • Distortions to Relevant Materials

  • Batching Complications

  • The Core Problem of the Bullwhip Effect


Part 4: The Power of Decoupling

  • Using Decoupling Points

  • Decoupling Point Criteria for Long-Term Success

  • Demand Driven MRP

Request a Precisely Wrong Workshop

You can request a Precisely Wrong Workshop at your place and with your team.  DDI Instructors are available throughout the world to deliver this immersive workshop.  Contact us about a Precisely Wrong Workshop.

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