Quick Summary: The Bill of Materials (BOM) structure groups items into hierarchy levels and uses Ratios to define material usage. This framework utilizes imported ERP data to drive forecasting and replenishment.
Why It Matters
The BOM structure links finished goods, semi-finished goods, and raw materials so that demand for a parent item automatically generates demand for its components. Understanding this structure ensures that replenishment and production plans are accurate and that all dependent materials are available when needed.
Understanding BOM Levels
The BOM tab on an item’s Inquiry screen displays a hierarchy that mirrors how your organization manufactures and consumes items.
It contains three main levels:
Pure Finished Goods (FG): Top-level products that are sold to customers and not used to make other items.
Semi-finished Goods (Sub-assemblies): Items that are manufactured and also consumed as components of higher-level finished goods.
Pure Raw Materials (RM): Purchased components that are not manufactured but are used to build other items.
This hierarchy allows the system to trace demand from finished goods down through all dependent levels to determine true component requirements.
Understanding the Ratio
The lines connecting items in the BOM tab include a Ratio field.
The ratio represents the quantity of a raw material or semi-finished good needed to produce one unit of its parent item.
Example:
If one bicycle requires four screws, the ratio between the parent “Bicycle” and the child “Screw” is 4:1.
This ratio is multiplied by forecast or order quantities to calculate total component demand.
Source of BOM Data
The BOM structure is not created or edited in the app. It is defined entirely in your ERP system and imported automatically via the bom.csv file through the standard data interface.
➜ For more on this topic, read: Data Interface Requirements - Bills of Materials
How To: Interpret the BOM Tab
➜ Read: How To: Interpret the BOM Tab
BOM Forecast Calculation Explained
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