Overview
Bill of Materials, or 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 is the quantity of a component or raw material required to produce the demand needed on the finished product or BOM. It helps ensure the required components are available in time for production or assembly.
BOM Demand is calculated by multiplying the quantity of each component in the BOM by the quantity of the BOM parent that needs to be produced.
When is BOM Demand needed?
BOM Demand is timed to account for the production lead time of the BOM parent.
It is placed on the Estimated Future Order date, one production lead time before the Estimated Future Delivery date — when the finished BOM parent is expected to become available as stock.
This ensures component demand is recognized early enough to support production and replenishment planning.
Here you can see the Estimated future deliveries on the parent item, and BOM demand on the component level, in the item card, on a granular daily level.
Note
In the example, one BOM component per BOM parent unit is needed. If two components are required, the BOM demand is twice the estimated future order for the finished good.
BOM in Item Card
The breakdown of which BOM parents are driving demand for a component can be found in a separate tab on the item card labeled BOM Demand.
As shown below in the item chart, the following BOM component has BOM demand but we can't see in the chart what BOM parents are driving the BOM demand.
The BOM Demand tab however gives you information of how much each BOM parent is contributing to the total BOM demand for the BOM component.
You can both look at this breakdown in a bar chart like shown above but you can also look at this in a grid format as shown below. In the grid you can also see how much is required of each BOM parent in a single unit of the BOM component in the field called Qty. in product.
You can quickly navigate to the item card of the BOM parents to view additional details if needed, as shown in the video below.
Note: Historical BOM Consumption of stock is a data series visible in the Item Card Chart and Grid, but not in the Plan tab.
It is only used for informational purposes.
BOM in Items
There are four useful columns in Items and Reports with information on BOM in Items.
BOM parent 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 parent, and
List of BOM parents shows all products that a BOM component is part of.
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 parent. 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.
