Development of a calculation model for materials management using DDMRP (Demand Driven MRP)

The thesis consists of a proposal to improve the manufacturing process of the hair dye line produced by Syd Laboratorio Cosmetico SAS, a company based in Cali, Colombia. With its existing model, the company experiences production and inventory planning problems, which result in inventory cost overruns and a low level of service. Due to the importance of such management, this thesis analyzed how the DDMRP (Demand Driven Material Requirements Planning) methodology provides a solution that fits the company's needs. The model overcomes the criticisms of the classic MRP in terms of demand variability and it is based on the strategic positioning of inventories and determination of adequate dimensions for the buffer sizes known as buffers. Based on the methodology established by the Demand Driven Institute, a DDMRP model was designed and developed for the production planning of the hair dye line in the company Syd Laboratorio Cosmetico SAS, where all the critical aspects to mitigate the potential risks caused by the variability in demand and supply were determined. A Monte Carlo simulation of the production planning under the DDMRP model of the hair dye line was also carried out to assess the effects and impact of the model. The simulation makes it possible to see how important variables impact inventory levels and how they alter dynamically over time. Additionally, it is possible to track the behavior of indicators like the service level and percentage of excess inventory through simulation. To test the robustness of the model, random runs were conducted using various demand probability distributions. The simulation results showed that the model is not susceptible to changes in demand and that it is also possible to raise service levels and reduce the proportion of excess inventory. In all simulation runs, the unfilled demand indicator was greater than or equivalent to 95%. The limitations on labor, manufacturing and storage capacity did not pose a barrier to the development of the model. The Syd Laboratorio Cosmetico SAS company's hair dye line benefits significantly financially from the usage of the DDMRP model, with a benefit-cost ratio of greater than 1. As a result, it can be considered that the model's adoption is feasible and has the potential to bring Syd Laboratorio Cosmetico SAS great financial gain.