What is a bill of materials (BoM)?
A list of all the raw materials, components and quantities needed to make one product — essentially the product's “recipe”.
In detail
The BoM is the foundation data for production and purchasing. The system uses it to calculate how much raw material a production batch needs, to determine whether stock is sufficient and how much to buy, and also to calculate product costs.
For example
Producing 100 bottles of juice requires 50 kg of concentrate, 100 bottles and 100 caps; the system checks stock accordingly and generates a material requisition.
How companies use it
Make sure the BoM matches actual production, update it promptly when recipes or packaging change, and keep a version history.
Common misconceptions
Leaving the BoM un-updated for long periods. When actual material usage differs from the list, both stock and cost data go wrong.
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