The central role of Material Requirements Planning (MRP) is to monitor stocks and, in particular, to automatically generate procurement proposals for purchasing and production, such as planned orders, purchase requisitions, or delivery schedule lines.
This goal is achieved through the use of various planning methods.
Consumption-based planning methods use historical consumption data to determine future requirements.
Meet Julia, your virtual trainer, and learn more about consumption-based planning in the following video.
In the previous video, Julia, your virtual trainer, introduced you to consumption-based planning.
Let's recap: Consumption-based planning consists of material planning procedures that are relatively easy to implement. These planning procedures are used in areas without in-house production and/or in production plants to plan B and C parts and operating supplies.
With consumption-based planning methods, the net requirements calculation is triggered when stock levels fall below a reorder level or by forecast requirements calculated from historical consumption data.
Now, let's look at how to specify that a particular material should be planned using a consumption-based planning method.