Exploding the Bill-Of-Materials is the process of calculating the number of purchased parts/ingredients required for each (semi-) finished product the Make process intends to make, followed by aggregating the quantities/volumes required by date and time for each part/ingredient.
For Buy products (e.g. Merchandise) this is typically not necessary. However hybrid business models exist where a third party perform the S and Make processes except for one or more strategic parts. For these strategic parts an explosion may be required.
The output of this process is the demand (forecast) for the inventory/scheduled receipts netting process (P203).
|P201||Gather Sourcing Demand||3||P201|
|BOM||Bill of Materials||BOM|
|DRP||Distribution Requirements Planning||DRP|
|MRP||Material Requirements Planning||MRP|