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Planning Bills of Material
Planning Bills of Material
A planning bill of material describes how product families are related, rather than how a manufactured item is assembled. During production planning, you determine the market demand for all end items. In some cases, market forecasts are developed for a family of products rather than for individual end items. A planning bill of material allows you to apply that family forecast to the individual items. The "parent item" is the product family itself. Each "component" is an end item within the family. The quantity per is the percentage of the family forecast that should be planned for an individual item. How a planning bill of material might be constructed is illustrated below:
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Four-wheel drive trucks
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Model A
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Model B
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Model C
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(qty per = .4)
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(qty per = .2)
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(qty per = .4)
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Planning Bill of Material
In this structure, 40% of the demand for four-wheel drive trucks is predicted to be satisfied by orders for Model A trucks, 20% by orders for Model B trucks, and the remaining 40% by orders for Model C trucks. The forecast quantity entered for the four-wheel truck family will be multiplied by these percentages to determine planning forecast quantities for each of the models.
End-item planning is performed by the Master Scheduling application. See the Master Scheduling User Manual for more information about planning bills of material.