Simplifying Replenishment: Consumption-Based Planning in SAP PP

In the fast-paced world of production planning, ensuring you have the suitable materials at the right time is crucial. While Material Requirements Planning (MRP) reigns supreme for complex production environments, another option for more straightforward scenarios is Consumption-Based Planning (CBP) in SAP PP.

What is Consumption-Based Planning?

As the name suggests, CBP leverages historical consumption data to forecast future material needs. Unlike MRP, which relies on the master production schedule (MPS), CBP operates independently. It triggers reorder points when inventory dips below a predefined level or uses forecasts based on past consumption patterns.

Key Features of CBP:

• Simplicity: CBP offers a user-friendly approach, requiring minimal setup effort compared to MRP’s intricate planning structure.
• Focus on Specific Items: CBP is ideal for managing B, C, and MRO (Maintenance, Repair, and Operations) items with relatively steady consumption patterns.
• Reduced Planning Burden: CBP frees up planning resources for more complex tasks by automating reorder point calculations.

Implementation Considerations:

• Consumption Pattern: CBP works best with materials exhibiting stable or predictable consumption trends. Significant fluctuations can lead to inaccurate forecasts.
• Inventory Management: Accurate and up-to-date inventory data is vital for CBP’s effectiveness. Regular inventory checks and adjustments are essential.

Who Should Use CBP?

CBP is a compelling option for:

• Companies without In-House Production: CBP simplifies material needs forecasting for businesses that primarily purchase finished goods.
• Production of Stable-Demand Items: CBP excels at managing materials with consistent consumption patterns in production environments.

In Conclusion

Consumption-based planning in SAP PP provides a streamlined approach to material planning for specific scenarios. Its ease of use and focus on independent demand make it a valuable tool for businesses seeking an efficient way to manage B, C, and MRO items.