What is Bill of material (BOM) in Supply Chain Management?

Learn Bill of Material (BOM) definition in supply chain management with explanation to study “What is Bill of material (BOM)”. Study bill of material (bom) explanation with SCM terms to review supply chain management course for online MBA programs.

Bill of Material (BOM) Definitions

  1. A list of the hierarchy of components, their description, and the quantity of each required to make one unit of a product.

    Operations Management: Sustainability and Supply Chain Management by Jay Heizer, Barry Render, Chuck Munson



  2. A listing of the components, their description, and the quantity of each required to make one unit of a product.

    Operations Management: Sustainability and Supply Chain Management by Jay Heizer, Barry Render, Chuck Munson



Bill of Material (BOM) Explanation

Businesses use this to list down the complete items that are required for the manufacturing of any product. It includes the raw material inventory, subassemblies, components and the quantities which are needed for the product manufacturing. Further, it helps the organizations to estimate their total costs, which amount of inventory is needed and from where to purchase a material.

Bill of Material (BOM) Explanation

A bill of materials (otherwise called a BOM or bill of material) is a far reaching rundown of parts, things, congregations and different materials required to make an item, just as guidelines required for get-together and utilizing the required materials. The bill of materials can be comprehended as the formula and shopping list for making a last item. The bill of materials clarifies what, how, and where to purchase required materials, and incorporates directions for how to gather the item from the different parts requested. All makers building items, paying little heed to their industry, begin by making a bill of materials (BOM). Since the bill of materials pulls together a wide range of item data, usually a few orders (plan and building, report control, tasks, fabricating, acquiring, contract makers and that's just the beginning) will devour information contained inside the BOM record to take care of business right.

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