consumption based material

[Former Member]

hi all

can anybody tell me what is the difference between consumption based material and material master.

[Former Member · Accepted solution]

HI,

Consumption-Based Planning :

Purpose

The central role of MRP is to monitor stocks and in particular, to automatically create procurement proposals for purchasing and production (planned orders, purchase requisitions or delivery schedules). This target is achieved by using various materials planning methods which each cover different procedures.

Consumption-based planning is based on past consumption values and uses the forecast or other statistical procedures to determine future requirements. The procedures in consumption-based planning do not refer to the master production schedule. That is, the net requirements calculation is not triggered either by planned independent requirements or dependent requirement. Instead, it is triggered when stock levels fall below a predefined reorder point or by forecast requirements calculated using past consumption values.

Material master:

Use

The material master database (often referred to simply as the "material master", comprising all the individual material master records stored in the system) contains descriptions of all materials that an enterprise procures, produces, and keeps in stock. It is the central repository of information on materials (such as inventory levels) for the enterprise.

The integration of all material data in a single materials database eliminates the problem of data redundancy and permits the data to be used not only by Purchasing, but by other applications (such as Inventory Management, Materials Planning and Control, Invoice Verification, and so on).

Descriptions of the individual materials used in an enterprise are stored in material master records.

reward if useful

regards,

sasi

[former_member184627]

Hi,

There are 3 MRP procedures.

1. MRP (Material Requirement Planning)

2.MPS (Master Production Scheduling)

3.CBP (Consumption based planning)

The MRP procedures supported in consumption-based planning are:

a) Reorder Point Planning

b) Forecast-Based Planning

c) Time-phased planning

Regards,

Senthilkumar

[Former Member]

Hi,

Consumption based material are the material which is used for direct consumption and inventory valuation takes place and it has the material type as UNBW and NLAG and some times there wont be any material no. for tht material .

where we can use a short text in the Po .

Note :Account assignment is mandatory for this

Material master is like a bible which has the necessary setting of material in diferent views.

where views are tells the effect of the material in their module and their setting in tht module.

Hope it wud have answered ur question

Reward if useful

Shawn