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Production planning involves several components that together manage a production run Bill of Materials (BOM) , Material Requirements Plan (MRP), and Master Production Schedule (MPS). These must be coordinated in detail. Trying to do this manually using spreadsheets will become impossible in an increasingly flexible environment.
A BOM may be a relatively simple document or a complex, multi-levelled product description made from multiple sub-assemblies. There are many ways in which BOM helps the manufacturing industry. A Bill of Materials (BOM) is a comprehensive list of all the items needed to manufacture a product. However, BOM offers more value.
Editor's Note: This is a two part series featuring Chuck Intrieri, who along with providing excellent insights over at his industry leading The Lean Supply Chain blog, is also a consultant who works with companies for Cost Reduction, Supply Chain Optimization, Logistics, Manufacturing, and 3PL Selection.
In the supply chain sector, just like any industry, we have a multitude of terms that are commonly used.So, I decided to create this list to help you decipher any supply-chain-related terms that you come across for the first time. Bill of Lading: A document representing a formal agreement between a shipper and carrier.
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