What do you mean by consumption-based planning (CBP)?
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What do you mean by consumption-based planning (CBP)?
Answer
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Consumption-based planning or CBP is dependent upon past consumption values. It is used to forecast to find out future requirements. These processes in CBP do not rely on the master production schedule. It is activated either when the stock level comes below a particular reorder point or when the forecast needs calculating with past consumption values.
