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What is BOM Explosion?

BOM Explosion

Expanding the BOM to the bottom level to calculate what is needed and how much is needed.

What it means

BOM development starts from the quantity of the product to be made and goes down step by step to calculate the required quantity. Semi-finished products are made only to the extent that is not enough in inventory, and only that much is spread downward.

The result of the development is “what and how many to make (work orders) and what and how many to buy (order)”.

At the pen factory

400 pens require 400 pieces of refill. Since there are 192 pieces in stock, we need to make 208 pieces, and those 208 pieces contain 208 pieces of refill tube, 208 pieces of ball, and ink.

Why it matters

You can see at a glance what a single spell will do in the steps below.

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