consumption based planning

[Former Member]

my question is whether cbp is used in the industry or not and if it is used then for what category of material

and which lot sizw are used for this

[Former Member · Accepted solution]

CBP-consumption based planning is basically MM-PP intigrated aspect.

it is planning the requirement of ur material for procurement purposes based on your consumption pattern.

mainly material used are of

ROH-raw material

VERP-packing material

ERSA-Stores and sppares

HIBE-OPerating consumable.

[Former Member]

Hello Baxter

I would like to continue from where manipal had left

CBP is based on past consumption values and uses the forecast or other stastical procedures to determine future requirements. The procedure in consumption based planning do not refer to the MPS. i.e the net requirements calculation is not triggered by planned independent requirements or dependent requirements. Insted it is triggered when stock level fall below a predefined reorder point or by forecast requirements calculated using past consumption values

Regards

Edited by: SAP Enjoy on Jan 5, 2008 7:38 PM

[Former Member]

Consumption based planning is typically used for MRO (Maintenance Repair and Operations) items.

For raw materials and semi-finished goods, the planning is driven primarily by the sales forecast.

The lot size usually depends on the material characteristics.

For e.g. if material is relatively inexpensive and small, then usually a fixed lot size (equal to few months supply) is used. If it is expensive or bulky, exact lot size is usually used.

Hope this helps,

Lakshman