BILL OF MATERIALS
A Bill of Materials (BOM) is a comprehensive list of raw materials, components, and instructions required for the manufacture, manufacture, or repair of a product or service. A bill of materials usually appears in a hierarchical format, with the highest level showing the finished product and the lower level representing individual components and materials.
CELEBRATIONS |
Take, for example, a cadbury celebrations packing that wants to build 100 box packing . A bill of materials for a cadbury celebration will include all the product that make up the cadbury celebrations such as cartons , tray , poly bag, chocolates, and warp film including the quantities required of each items and their cost.
A well-defined BOM helps companies:
- Plan purchases of raw materials
- Estimate material costs
- Gain inventory control
- Track and material requirements plan
- Maintain accurate records
- Ensure supply robustness and minimize waste
- Daily tracking record
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