Abstract
This paper introduces a method for calculating material requirements by decomposing bills of materials. Starting with the primary (end customer) demand, we use bills of materials to calculate direct material requirements step by step for each production stage until the total material requirements have been calculated. The method proposed in this paper illustrates how the product structure influences material requirements and may thus be used in class to show students how material requirements can be calculated precisely. In addition, the method proposed in this paper may also be applied for calculating material requirements in practice.
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