Which consumption-based planning method is suitable for irregular demand patterns?

Automatic Reorder Point Planning is the correct choice for managing irregular demand patterns because it dynamically adjusts reorder points based on actual consumption data, leading to more responsive inventory management. This method takes real-time consumption into account, allowing for flexibility in order quantities and timing, which is crucial when demand is unpredictable.

With irregular demands, static approaches, such as Static Reorder Point Planning, may not adequately respond to fluctuations in demand, risking stockouts or excess inventory. Similarly, Forecast-based Planning, which relies on historical data to predict future needs, may not accurately capture the volatility associated with irregular demand. Inventory Optimization Planning, while beneficial in many contexts, often focuses on overall inventory efficiency rather than addressing the immediate need for responsiveness to unpredictable demand changes. Therefore, Automatic Reorder Point Planning stands out as the most suitable for dealing with irregular consumption patterns effectively.