SAP Consumption-based Planning (CBP)
As the name indicates, this planning would be carried out based on the consumption values. The consumption values are the past historical consumption data. This data would then be used to calculate future requirements with the help of a forecasting program. For example, the requirements could be triggered when the material stock level falls below a reorder point. The reorder point would be calculated based on the past historical consumption data. There is another stock known as safety stock level. The safety stock should be maintained for the respective material to plan for the requirements and also for any unplanned delivery or any unexpected delay in supply from vendors.
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