As the name suggests, 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.

The MRP procedures supported in consumption-based planning are:

• Reorder Point Planning
• Forecast-Based Planning
• Time-phased planning