Bill of Materials

Bill of Materials (BOM)

The Bill of Materials (BOM) is the foundational DNA of any manufactured product. It is a highly structured, comprehensive recipe that catalogs every raw material, component, and subassembly required to produce a single end item. In modern operations, the BOM is structured hierarchically as a "product structure tree," allowing MRP systems to accurately calculate the cascading multiplier effects of dependencies, manage lead-time offsets, and perform accurate cost roll-ups from the lowest level components up to the finished product.

Key Concepts

Product Structure Tree

A visual representation of the BOM. The End Item is at Level 0. Assemblies and subassemblies (parents) are made of parts or raw materials (children).

Low-Level Coding

Restructuring the BOM so that multiple occurrences of a component all coincide with the lowest level at which the component occurs, simplifying MRP calculations.

Multiplier Effect

The total quantity of a component required is its "quantity per parent" multiplied by the total demand for its parent assembly.

Cost Roll-up

The process of calculating the total cost of an assembly by iteratively adding up the costs of all its component parts from the bottom level up to Level 0.

Interactive BOM Builder

Define your product structure below. This structure will be used in the MRP module for multi-component explosion.

Add New Component

Current Components List

Item Parent Qty LT Action
Structure Multiplier & Cost

Enter the required demand for the End Item. Click on the "Total Cost" cells for a step-by-step breakdown of the roll-up calculation.

Item Level Qty per Parent Total Qty Total Cost ($)
Total Manufacturing Cost: $0
Visual Tree