Overview
BOM is a comprehensive list of all the components needed to manufacture or assemble a particular product. The BOM typically includes information about each component, such as, the item number, the quantity required and the lead time to receive the items from the vendor to ensure that all necessary components are ordered and available when production or assembly begins.
What is BOM Demand and how is it calculated?
BOM demand refers to the total quantity of each component or raw material required to produce a specific number of finished products. It is an essential element of the production and assembly planning process, as it helps to ensure that all the necessary components are available when production or assembly begins.
The BOM demand quantity is calculated by multiplying the quantity of each component listed in the BOM by the quantity of the BOM products that need to be produced.
To account for production or assembly lead times, the BOM Demand is set to the date of Estimated Future Orders of the BOM product, one production lead time before Estimated Future Deliveries, which is when the BOM product is due to be delivered as available stock.
Note
In the example, one BOM component per BOM product unit is needed. If two components are required, the BOM demand is twice the estimated future order for the finished good.
BOM in Items
There are four useful columns in Items and Reports with information on BOM in Items.
BOM final product shows whether or not the item is a final product in BOM.
BOM component shows whether or not the item is a component for BOM.
List of BOM components shows all item numbers that are components of that BOM final product, and
List of BOM products shows all products that a BOM component is part of.
Historical BOM Consumption of stock is a data series in both the Item Card/Chart and Plan tabs.
BOM in Plans
BOM Demand is also available as a data series in Plans.
Some items can be both a BOM component and a BOM final project. In those cases, demand driven from the sales forecast of the item when sold on its own is added to the demand driven from BOM Demand from the final product to create the total Demand for the component item. An example of this is an item that can be sold either individually or as part of a BOM set.
