What does the term "bill of materials" (BOM) refer to?

The term "bill of materials" (BOM) refers to a comprehensive list of raw materials, sub-assemblies, and components needed to produce a product. This extensive document outlines everything necessary to manufacture a finished good, detailing each item with its quantity, description, and sometimes even specific part numbers. The BOM serves as a critical tool in manufacturing and production planning, as it provides the foundation for estimating resources, understanding costs, and managing inventory levels effectively.

It is essential for ensuring that all necessary components are available for production, as well as facilitating accurate production scheduling and cost estimation. Having a well-defined BOM streamlines the manufacturing process, minimizing errors and enhancing efficiency in the supply chain. As such, this makes it an indispensable resource in master planning and overall resource management.