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SAP MRP VS CB.pptx Material Requirement planning
1. CBP. w.s.MRP. irn SAPS/4HANA
This chart explains the core distinctions between CBP and MRP within SAP S/4HANA, highlighting their
operational focuses, planning methodologies, and suitability for different types of inventory and demand
patterns. While CBP is more straightforward and relies on past data, MRP is more dynamic, leveraging
detailed current and forecasted demand data to optimize production and inventory management.
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mTinotenda Chiraudi, [Eng]
ASPECT
Definition
Consumption Based Planning
A planning process that triggers procurement based on
historical consumption data.
Trigger
Material Requirements Planning
A planning process that calculates material requirements based
on actual and forecasted sales.
Past consumption patterns and stock levels. Sales orders, production orders. and forecasts.
Planning
Objective
To maintain optimal stock levels and minimize stock-outs by
ordering items just in time based on past consumption.
To ensure materials are available for production and products are
available for delivery to customers.
Data Analysis Uses historical consumption data to forecast future demand.
Analyzes Bill of Materials (BOMs).inventory, and work schedules
to determine material needs.
Replenishment
Strategy
Primarily focused on replenishing stock based on the
consumption rate to avoid stockouts.
Focuses on meeting specific production schedules and customer
demand, considering lead times and production capacities.
Inventory
Control
Tends to maintain higher inventory levels to buffer against
variability in consumption.
Aims to minimize inventory levels by ordering just what is needed
when it is needed.
I
Complexity
Generally simpler, suitable for items with predictable
consumption patterns.
Application
More suited for non-critical items or items with steady
demand.
More complex, integrating various factors like lead times, order
quantities, and production schedules.
-
Essential for critical items, items with variable demand, and for
managing the production process.
SAP S/4HANA
Integration
Integrated into the SAP S/4HANA landscape, offering tools for
monitoring and managing stock levels based on
consumption.
Deeply integrated, utilizing advanced algorithms for real-time
planning and optimization across the supply chain.
Flexibility and
Responsivenes
s
Less responsive to sudden changes in demand or production
schedules.
Highly responsive to changes in demand, production schedules.
and supply chain disruptions.
Technology
Utilization
Can incorporate basic forecasting models and analytics for
demand prediction.
Leverages advanced analytics, Al,and machine learning for
precise demand forecasting and planning.
![CBP. w.s.MRP. irn SAPS/4HANA
This chart explains the core distinctions between CBP and MRP within SAP S/4HANA, highlighting their
operational focuses, planning methodologies, and suitability for different types of inventory and demand
patterns. While CBP is more straightforward and relies on past data, MRP is more dynamic, leveraging
detailed current and forecasted demand data to optimize production and inventory management.
•
•
1...·•-,
r ■
1
rn, 1 1
,
ji6
' ..•' .'·
•
) .
- •
•
•
II II II •
•
'
••
mTinotenda Chiraudi, [Eng]
ASPECT
Definition
Consumption Based Planning
A planning process that triggers procurement based on
historical consumption data.
Trigger
Material Requirements Planning
A planning process that calculates material requirements based
on actual and forecasted sales.
Past consumption patterns and stock levels. Sales orders, production orders. and forecasts.
Planning
Objective
To maintain optimal stock levels and minimize stock-outs by
ordering items just in time based on past consumption.
To ensure materials are available for production and products are
available for delivery to customers.
Data Analysis Uses historical consumption data to forecast future demand.
Analyzes Bill of Materials (BOMs).inventory, and work schedules
to determine material needs.
Replenishment
Strategy
Primarily focused on replenishing stock based on the
consumption rate to avoid stockouts.
Focuses on meeting specific production schedules and customer
demand, considering lead times and production capacities.
Inventory
Control
Tends to maintain higher inventory levels to buffer against
variability in consumption.
Aims to minimize inventory levels by ordering just what is needed
when it is needed.
I
Complexity
Generally simpler, suitable for items with predictable
consumption patterns.
Application
More suited for non-critical items or items with steady
demand.
More complex, integrating various factors like lead times, order
quantities, and production schedules.
-
Essential for critical items, items with variable demand, and for
managing the production process.
SAP S/4HANA
Integration
Integrated into the SAP S/4HANA landscape, offering tools for
monitoring and managing stock levels based on
consumption.
Deeply integrated, utilizing advanced algorithms for real-time
planning and optimization across the supply chain.
Flexibility and
Responsivenes
s
Less responsive to sudden changes in demand or production
schedules.
Highly responsive to changes in demand, production schedules.
and supply chain disruptions.
Technology
Utilization
Can incorporate basic forecasting models and analytics for
demand prediction.
Leverages advanced analytics, Al,and machine learning for
precise demand forecasting and planning.](https://image.slidesharecdn.com/mrpvscb-240309164217-c243b111/85/SAP-MRP-VS-CB-pptx-Material-Requirement-planning-1-320.jpg)
