Which of the following statements about consumption-based planning is TRUE?
A)Planning is based on historical data.
B)Planning is based on exploding the BOM.
C)Dependent demand is derived from independent demand.
D)It is used for high-value materials
E)Planning is based on MPS.

Question

Quizplus · Accepted Answer

Consumption-based planning relies on historical data to forecast inventory needs and plan production schedules. It does not involve exploding the bill of materials (BOM) or using the master production schedule (MPS) to determine demand. Dependent demand may be taken into account, but it is not necessarily derived solely from independent demand. The value of the materials is not relevant to the use of consumption-based planning.

Which of the Following Statements About Consumption-Based Planning Is TRUE