Consumption-based planning derives dependent demand based on independent requirements and exploding the BOM.

Name: Consumption-based planning derives dependent demand based on independent requirements and exploding the BOM.
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Consumption-based planning triggers the procurement of materials based on historical consumption data and forecasts, rather than on the basis of independent requirements and BOM explosion, which is characteristic of MRP (Material Requirements Planning).

Consumption-Based Planning Derives Dependent Demand Based on Independent Requirements and Exploding