Consumption based Planning vs MRP

[Former Member]

Gurus,

What is the difference btw

Consumption based Planning vs MRP

[Dsk · Accepted solution]

1. MRP :

**MRP is carried out using current and future sales figures.

The planned and the exact requirement quantities trigger the net requirements calculation.

**The requirement elements of this calculation include sales orders, planned independent requirements, material reservations, dependent requirements received from BOM explosion, and so on. The net requirements calculation can give the exact requirements for each day.

**As you require exact requirement quantities for MRP, this means that you can work with particularly low safety stocks

• SAP uses

• Material requirements planning

• Material REquirement planning wtih plannig time fence

2. Consumption Based Planning:

• consumption-based planning procedures use past consumption data (historical data) to calculate future requirements with the help of the material forecast or static planning procedures.

• Consumption-based planning procedures have no reference to the master plan. This means that the net requirements calculation is not triggered by an independent or a dependent requirement. Instead, the net requirements calculation is triggered when stock levels fall below a reorder point or by forecast requirements calculated from past consumption data.

• The advantage of this type of planning is that it is easy to use and you do not require extensive data.

• SAP Uses the below mrp procedures

Reorder Point Planning

Forecast-Based Planning

Time-phased planning

Note: help.sap.com has much details on this.

Kindly let me know if you have any specific querry

Reg

Dsk

[former_member196530]

Dear ,

It is very generic question .I would suggest you to have Forum search in this topic where beautiful Wiki and forum comments are available .

However , there are two parts here : Demand Creation through Cosnumption ( Forecated Demand , re-order demand using consumption , Times Phased Demand ) and then MRP run based on differnet MRP Procedure .

Consumption Base Planning : Forceast base , Re-order Base , Time Phase three type of planning called CBP wtih differnet MRP type called

VV- FBP,

VM OR VB-ROP -Manual /Automatic

RR , RS-Time Phase .

Both ROP-Automatic and Manual as well as FBP , system uses the Past Consumption (Movement Type 601, 261, etc -Consumption against Sales , projects , free issue of material through Movement Type -OMJJ-Material Master Update as Planned or Unplanned Total Conmtion in MMR-Forecasting View ) of certain period and Create Demand through Forecasting .

Now this demand-Forecasted Demand or Re-Order Point (which also a demand qty ) will teated through MRP to have Procurement Element based on planning situation after Net Requirement Calcualation .

This is a summery of CBP.

Where as in MRP where demand can be anything PIR , Sales Order , Schedule Agreement etc and planning stnadrad MRP ( having procedure S-Stnadrad MRP Type , no inlcusion of Re-order Level calcualtion , Safety Stock Calcualtion based on Consumption ) .

Look at my earlier osting on same topic :

http://help.sap.com/saphelp_470/helpdata/en/7d/c2821c454011d182b40000e829fbfe/frameset.htm

Hope i make you understand .

Regards

JH

Edited by: Jiaul Haque on Aug 2, 2010 11:03 AM

Edited by: Jiaul Haque on Aug 2, 2010 11:06 AM