What is consumption-based planning in SAP IS-R - SAP for Retail?

SAP Term: consumption-based planning

• Component: IS-R

• Component Name: SAP for Retail

• Description: Retail Type of planning that is based on current stock levels and past sales quantities.

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• Key Concepts: 
  Consumption-based planning is a feature of the IS-R SAP for Retail system that allows retailers to plan their inventory based on the actual consumption of goods. This type of planning helps retailers to better manage their inventory and ensure that they have the right amount of stock on hand at all times. 
  
  How to use it: 
  Consumption-based planning can be used to create a forecast of future demand for goods based on past consumption patterns. This forecast can then be used to determine the optimal amount of stock to keep on hand. The system also allows retailers to adjust their inventory levels in response to changes in demand or other factors. 
  
  Tips & Tricks: 
  When using consumption-based planning, it is important to keep track of changes in demand and adjust inventory levels accordingly. It is also important to monitor the accuracy of the forecasts and make adjustments as needed. Additionally, retailers should consider using other forecasting methods in addition to consumption-based planning in order to get a more accurate picture of future demand. 
  
  Related Information: 
  Consumption-based planning is just one type of inventory management system available in the IS-R SAP for Retail system. Other features include demand forecasting, inventory optimization, and supply chain management. Additionally, there are a variety of third-party software solutions available that can help retailers manage their inventory more effectively.