What is BOM factor in SAP MM-IM - Inventory Management?

SAP Term: BOM factor

• Component: MM-IM

• Component Name: Inventory Management

• Description: A factor used in the processing of full products to specify how many parts of a full-product material fit into an "empties" material. &EXAMPLE& An empty crate of mineral water empties can hold 12 bottles of water full product. The BOM factor for an empty crate is 12.

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• Key Concepts: 
  BOM factor (Bill of Materials factor) is a numerical value that is used to indicate the quantity of a component that is required to produce a certain number of finished products. It is used in the Inventory Management (MM-IM) component of SAP. 
  
  How to use it: 
  The BOM factor is used to define the quantity of components that are needed for a certain number of finished products. For example, if a product requires two components, the BOM factor would be 2. This value can be changed depending on the number of finished products that need to be produced. 
  
  Tips & Tricks: 
  When setting up a BOM factor, it is important to ensure that the value is accurate and up-to-date. This will help to ensure that the correct amount of components are used for each finished product. 
  
  Related Information: 
  The BOM factor is closely related to the material requirements planning (MRP) process, which is used to plan and manage the production process. MRP uses the BOM factor to determine how much of each component is needed for each finished product.