created for use in production planning
that permits various components to be grouped together to simplify administration
. This is especially useful if a company's finished products represent
many possible permutations that can be created from the various parts kept in stock
. A placeholder part number
may be created to represent a cluster
of components that is common
to all the finished products. For example, if all the permutations of a given product
use the same base
, screws, brackets, and wires, these would all be represented by a single part
number on the bill of material.
Also called phantom bill of material or planning
bill of material.