What is Multi-level BOM?
Multi-level BOM
A multi-level BOM with parts underneath parts.
What it means
If there are parts that go into a product that are made directly (semi-finished products), those parts also have their own BOM. When a BOM consists of stages like this, it is called a multi-level BOM.
The area immediately below the product is called level 1, and the level below it is called level 2. As you get deeper into the levels, a single spell at the top creates a lot of work below.
At the pen factory
Below the black ballpoint pen are the barrel, cap, spring, black refill, and packaging box (step 1), and below the black refill are the refill tube, ball, and ink (step 2).
Why it matters
Just write down the steps so you can calculate "how much ink is needed to make 400 pens."