What is consumption mode in SAP PP-MP - Production Planning?

SAP Term: consumption mode

• Component: PP-MP

• Component Name: Production Planning

• Description: An indicator in demand management that controls the direction on the time axis in which sales orders or dependent requirements are allocated and consume planned independent requirements. Consumption can take place with planned independent requirements that are before or after the sales order.

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• Key Concepts: 
  Consumption mode is a feature in the Production Planning and Manufacturing Execution (PP-MP) component of SAP. It is used to determine how materials are consumed in production orders. It is used to define the rules for how materials are consumed from the warehouse and how they are posted to the production order. 
  
  How to use it: 
  The consumption mode is set up in the material master record. It can be set up as either “automatic” or “manual”. In automatic mode, the system will automatically consume materials from the warehouse based on the rules set up in the material master record. In manual mode, the user must manually select which materials to consume from the warehouse. 
  
  Tips & Tricks: 
  When setting up consumption mode, it is important to consider how materials will be consumed in production orders. If there are multiple materials that need to be consumed, it may be beneficial to set up a manual consumption mode so that the user can select which materials to consume from the warehouse. 
  
  Related Information: 
  Consumption mode is closely related to other features in PP-MP such as material requirements planning (MRP) and material availability check (MAC). MRP is used to determine when and how much material needs to be ordered from vendors, while MAC is used to check if there is enough material available in the warehouse for production orders.