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Planning Bill of Materials

Planning Bill of Materials

It is a Bill of Materials made in order to make demand forecast or production plan easy to implement. When doors and frames are assembled to one product, as shown in the figure, the more types the door or frame has, the more types the product has, which makes the plan of an individual product difficult to make. In this case, it is a good idea to group the doors and frames, and perform a demand forecast or production plan by group. Therefore pseudo items (planning items) are added only for planning or OP items unnecessary for planning are deleted. A Bill of Materials made for planning in this way is called Planning Bill of Materials.

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Related term: Bill of Materials

Reference:JIT Business Research Mr. Hirano Hiroyuki

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