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    Preparing BOM and computing gross and net requirements

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    14.8 As the production planner for Scott Sampson Products, Inc., you have been given a bill of material for a bracket that is made up of a base, two springs, and four clamps. The base is assembled from one clamp and two housings. Each clamp has one handle and one casting. Each housing has two bearings and one shaft. There is no inventory on hand.
    a) Design a product structure nothing the quantities for each item and show the low-level coding.
    b) Determine the gross quantities needed of each item if you are to assemble 50 brackets.
    c) Complete the net quantities needed if there are 25 of the base and 100 of the clamp in stock.

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    Solution Preview

    Hello,

    Please find attached a step by step guide on how to prepare BOM structure and compute gross requirements and net requirements. I have provided pictorial presentation along with the notes. Requirements computations are detailed for your reference.

    Hope this helps you.

    Solution:
    Step 1: Draw product structure consisting of end product/finished good/highest level assembly and components or raw materials required. Start with highest level item and keep including components or next level items.
    Note that highest level item or end product is coded at Level 0 and next level of items are ...

    Solution Summary

    The solution provides step by step guide on how to prepare BOM, compute gross/net requirements and also includes a product structure diagram.

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