Consumption-based planning is based on past consumption values and uses the forecast or other statistical procedures to determine future requirements. Procurement is triggered either when a defined order point is fallen short of (reorder point) or by forecast requirements, which are calculated based on past consumption.

If you use forecast requirements, the consumption pattern should be fairly constant or linear with few irregularities. A prerequisite is an efficient and current inventory management.

The forecast, which calculates future requirements using historical data, is carried out at regular intervals. The forecast values have a direct effect in MRP as forecast requirements.

If you use reorder points, an order proposal is always generated when the warehouse stock falls below the reorder point.