Asked by Kymberly Corley on May 12, 2024

verifed

Verified

The bill of material contains information necessary to

A) place an order to replenish the item.
B) calculate quantities on hand and on order.
C) convert net requirements into higher level gross requirements.
D) convert gross requirements into net requirements.
E) convert (explode) net requirements at one level into gross requirements at the next level.

Bill Of Material

A comprehensive list of raw materials, components, and assemblies required to manufacture or assemble a product.

Gross Requirements

The total amount of materials or products needed before any adjustments for inventory or scheduled production.

Net Requirements

The total amount of a material or product required, taking into account current inventory and any orders in process, to meet customer demand.

  • Comprehend the significance and methodology of revising a Bill of Materials (BOM), along with its effects on manufacturing processes.
verifed

Verified Answer

SL
Sherry LabibMay 17, 2024
Final Answer :
E
Explanation :
The bill of material is used to convert (explode) net requirements at one level into gross requirements at the next level. It specifies the components and their quantities required to make a finished product. It does not contain information on quantities on hand or on order or how to place an order to replenish the item. It is only used for converting gross requirements into net requirements.