BOMs

The bill-of-materials (BOM) is a detailed list of the materials and components required to manufacture a product.

To calculate product costs, the BOM consumes raw materials which in turn consumes commodity materials. Multiple BOMs, material substitutions, yield and scrap percentages, and commodity prices are all inputs required to calculate the cost of direct materials.

Ecosystem models include detailed BOMs that allow the adjustment of any material input to see the effects on overall profits.