CBP (CONSUMPTION BASED PLANNING)

DEFINITION:
In consumption based planning is generally suited for low value material where we can
make a plan which is based upon the historical or past data to calculate the future planning.

MRP Procedures in Consumption Based Planning:

➢ MRP Types:
1. Forecast Based 2. Time phased 3. Reorder point planning

➢ MRP Controller:
A person or a group of a people who are responsible for MRP based run

➢ Areas:
1. Plant 2. Storage Location 3. Sub- Contractor area

➢ Minimum Stock Level (MSL):

It is considered at a certain level, when a material stock is falling under the level,
automatically system will triggered the mail.

➢ Re-Order Point:
This is the lowest number of an item or material, company needs to have in stock, to
make sure it is do not running out, hence if the stock is falling under automatically
purchase requisition got created, this is how we can keep fulfilling our orders.

Note: Purchase requisition can be created manually (real time) or automatically with the
help of MRP base run.

Prepared by: Manoswita Ganguly Chakraborty

(SAP MM Associate)
Pre- Requisites:
• Maintain MRP Controller

Path: SPRO> SAP Ref IMG> Materials Management> Consumption based

Planning> Plant Parameters> Carryout Overall maintenance of plant parameters>
Maintain> put plant >Maintain> MRP Controller

Prepared by: Manoswita Ganguly Chakraborty

(SAP MM Associate)
 • Configuration to activate Consumption Based Planning

Path: SPRO> SAP Ref IMG> Materials Management> Consumption based Planning>
Planning> Activate material requirement planning> Material requirement planning> we
need to check activate plant planning for our plant

Prepared by: Manoswita Ganguly Chakraborty

(SAP MM Associate)
PROCESS FLOW:

STEPS ARE AS FOLLOWS,

Prepared by: Manoswita Ganguly Chakraborty

(SAP MM Associate)
STEP 1: Create a material using T-code MM01

Prepared by: Manoswita Ganguly Chakraborty

(SAP MM Associate)
Here in MRP 1 view we select our MRP type, Reorder point and Lot size and MRP controller
respectively.

VB is manual reorder point planning

Prepared by: Manoswita Ganguly Chakraborty

(SAP MM Associate)
Here we will select reorder point (qty 100) & Lot size FX (fixed order quantity,500)

NOTE: Lot Size, is to gather requirement of material for a specific period of time, Lot Size,
500 means at the time of auto PR creation, each PR will be contain 500 qty material.

MRP controller we are taking as MR1

Prepared by: Manoswita Ganguly Chakraborty

(SAP MM Associate)
In MRP 2 view planned delivery time needs to be selected, as an example we are taking as 2
days.

Prepared by: Manoswita Ganguly Chakraborty

(SAP MM Associate)
Now, after creating the material we can check the stock in MMBE,

Prepared by: Manoswita Ganguly Chakraborty

(SAP MM Associate)
Now, as per our planning we should required 500 quantity, which should be autometically
generated through Purchase Requisition

STEP 2: Auto generation of Purchase Requisition (single item multi level)

Prepared by: Manoswita Ganguly Chakraborty

(SAP MM Associate)
STEP 3: Here we can execute MRP through MD04 (Stock requirement List)

Prepared by: Manoswita Ganguly Chakraborty

(SAP MM Associate)
STEP 4: In this step we can create Purchase info record, as automatically price will be picked
at the time of creation of purchase order

Prepared by: Manoswita Ganguly Chakraborty

(SAP MM Associate)
STEP 5: Here, we need to maintain MRP relevant record in source list at plant level, and
assign source of supplier with the purchase requisition respectively.

Prepared by: Manoswita Ganguly Chakraborty

(SAP MM Associate)
STEP 6: Creation part of the purchase order,

Prepared by: Manoswita Ganguly Chakraborty

(SAP MM Associate)
We have received goods for 500 quantities, unrestricted stock contains 500 quantities

Here, for testing purpose, we are consuming 450 quantity materials; now the stock is falling
down under the minimum stock level (MSL)

Then we will check the stock again in MMBE after consumption.

Lot size 500 qty

MSL 100 qty

Consumed material qty 450

Now, unrestricted stock 50 qty

Prepared by: Manoswita Ganguly Chakraborty

(SAP MM Associate)
Prepared by: Manoswita Ganguly Chakraborty

(SAP MM Associate)
Hence, again with the help of MD02 we can create automatic Purchase requisition and
recycle the process,

Prepared by: Manoswita Ganguly Chakraborty

(SAP MM Associate)
Check the stock in MMBE, material qty 550, qty 50 was there previously and another 500
qty materials are added due to automatic creation of Purchase requisition through planning.

Prepared by: Manoswita Ganguly Chakraborty

(SAP MM Associate)
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Prepared by: Manoswita Ganguly Chakraborty

(SAP MM Associate)