Bills of Materials (BOM)

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Definition of 'Bills of Materials (BOM)'

A bill of materials (BOM) is a list of the components required to produce a product. It includes the quantity, description, and cost of each component. BOMs are used by manufacturers to track the cost of production and to ensure that they have the necessary materials on hand.

There are two main types of BOMs:

* **Assembly BOMs:** These lists include all of the components required to assemble a product. They are used by manufacturers to track the cost of production and to ensure that they have the necessary materials on hand.
* **Manufacturing BOMs:** These lists include all of the components required to manufacture a product. They are used by manufacturers to track the cost of production and to ensure that they have the necessary materials on hand.

BOMs are an important part of the manufacturing process. They help manufacturers to control costs, ensure quality, and meet customer demand.

Here are some of the benefits of using BOMs:

* **Cost control:** BOMs help manufacturers to track the cost of production by providing a detailed list of all of the components required to produce a product. This information can be used to identify areas where costs can be reduced.
* **Quality control:** BOMs help manufacturers to ensure quality by providing a detailed list of all of the components required to produce a product. This information can be used to ensure that the correct components are used and that the product is assembled correctly.
* **Customer demand:** BOMs help manufacturers to meet customer demand by providing a detailed list of all of the components required to produce a product. This information can be used to ensure that the manufacturer has the necessary materials on hand to meet customer demand.

BOMs are an important part of the manufacturing process. They help manufacturers to control costs, ensure quality, and meet customer demand.

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