MRP vs CBP in SAP
Material Requirements Planning (MRP)
The main function of MRP is to ensure the availability of the material. In other words MRP is used to procure or produce the required quantities on time for internal purpose or for SALES.
MRP Procedures: Material requirements planning, Master production scheduling, Consumption based planning
It uses current and future sales figures.The system calculates the requirements based on the warehouse stock, receipts, etc. If externally procured then procurement proposals; if internal production then it leads to creation of planned orders, and also dependent requirements are calculated.
The best thing about this is that it leads to minimization of inventory, which leads to reduction of costs involved.
Consumption Based Planning (CBP)
CBP 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.
It has no relation with the independent or dependent requirement instead it is triggered when the stock falls below the reorder point or by forecast requirements.
In consumption-based planning, the following MRP procedures are available:
Reorder point procedure, Forecast-based planning, Time-phased materials planning
Consumption-based planning is integrated in the Materials Management component. You can access the consumption-based planning functions from the SAP Easy Access Menu by choosing Logistics -> Materials Management -> Materials Planning -> MRP.