Which planning procedure is recommended to reduce planning efforts for B/C materials?

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The recommended planning procedure to reduce planning efforts for B/C materials is consumption-based planning. This approach focuses on utilizing existing consumption data to drive inventory planning and procurement processes. By analyzing historical consumption patterns, businesses can establish reorder points and safety stock levels automatically, allowing for more efficient inventory management without the need for extensive manual intervention or complex forecasting.

Consumption-based planning is particularly effective for B and C class materials, which typically represent a large portion of the inventory in terms of quantity but have a lower impact on overall revenue compared to A class materials. This means that businesses can streamline their planning processes and resource allocation, as these materials generally do not require the same level of detailed forecasting and planning as A class materials, thus reducing overall planning efforts.

Unlike other methods, such as material requirements planning, which may involve more complex calculations and data analyses, consumption-based planning keeps the process straightforward and is well-suited for materials with stable and predictable usage rates. This makes it a practical choice for managing lower-tier inventory effectively.

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