5. Product Structure Tree

 

6. Indented Bill of Material

• Phantom bills

  • transient subassemblies

  • never stocked

  • immediately consumed in next stage

• K-bills

  • group small, loose parts under pseudoitem #

  • reduces paperwork

• Modular bills

  • product assembled from major subassemblies & customer options

  • modular bill kept for each major subassembly

  • simplifies forecasting & planning

7. Indented Bill of Material

LEVEL	ITEM	Unit of Measure	Quantity
0 - - - -	Clipboard	Ea	1
- 1 - - -	Clip Assembly	Ea	1
- - 2 - -	Top Clip	Ea	1
- - - 3 -	Sheet Metal	In2	8
- - 2 - -	Bottom Clip	Ea	1
- - - 3 -	Sheet Metal	In2	8
- - 2 - -	Pivot	Ea	1
- - - 3 -	Iron Rod	In	3
- - 2 - -	Spring	Ea	1
- - - 3 -	Spring Steel	In	10
- 1 - - -	Rivet	Ea	2
- 1 - - -	Board	Ea	1
- - 2 - -	Press Board	Ea	1
- - 2 - -	Finish	Oz	2

 

8. Specialized BOMS

• Phantom bills

  • transient subassemblies

  • never stocked

  • immediately consumed in next stage

• K-bills

  • group small, loose parts under pseudoitem #

  • reduces paperwork

• Modular bills

  • product assembled from major subassemblies & customer options

  • modular bill kept for each major subassembly

  • simplifies forecasting & planning

9. Inventory Master File

Description		Inventory Policy
Item	Board	Lead time	2
Item no.	7341	Annual demand	5000
Item type	Manuf.	Holding cost	1
Prod/sales	Ass’y	Ordering/setup cost	50
Value class	B	Safety stock	25
Buyer/planner	RSR	Reorder point	39
Vendor	7142	EOQ	316
Phantom code	N	Minimum order qty	100
Unit price/cost	1.25	Maximum order qty	500
Pegging	Y	Multiple order qty	100

 

Physical Inventory		Usage/Sales
On hand	100	YTD usage/sales	1100
Location	W142	MTD usage/sales	75
On order	50	YTD receipts