A company uses planning bills of material (BOMs) in its planning process extensively.

Planning BOMs are typically used when a product family has multiple configurations. A high frequency of new product introductions makes it difficult to maintain accurate planning BOMs, as they require regular updates to reflect structural and component changes.

“High product innovation frequency undermines the usefulness of planning BOMs, as they cannot represent rapidly evolving product structures.”

— CPIM MRP and ECO Modules – BOM Accuracy and Change Control Sections