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Explain Consumption based planning and Demand based
planning, which is better and how?
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Answer Posted / kumararvind
CONSUMPTION BASED PLANNING MEANS HOW MUCH THE CONSUMERS ARE CONSUMING THE PRODUCT AT THE PRESENT TIME AND ON THE BASIS OF CONSUMPTION LEVEL THE COMPANY PLANS TO PRODUCE THE PRODUCT, BUT DEMAND BASED PLANNING MEANS-TO PRODUCE THE PRODUCT ON THE BASIS OF PRESENT DEMAND AND PLAN FOR FUTURE ON THE BASIS OF FUTURE PREDICTED DEMAND. CONSUMPTION BASED PLANNING IS BASICALLY FOCUSED ON PRESENT BUT DEMAND BASED PLANNING ALWAYS INCLUDES FUTURE REQUIREMENTS.
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