CPIM Practice Exam

In an indented bill of material, which items are classified as purchased components?

1. All items on the bill

2. Items that do not have additional indented items below them

3. Items located at the rightmost level of indenting

4. All items that have further indented items below them

The correct answer is: Items that do not have additional indented items below them

In an indented bill of materials (BOM), purchased components are those items that do not have any further indented items beneath them. This indicates that these components are sourced from external suppliers rather than being manufactured internally. In understanding the structure of an indented BOM, items that are at the highest levels typically represent assemblies or subassemblies, which may require additional components or parts. However, those components classified as purchased do not further break down into additional components; they are complete as-is. These parts are generally completely ready for integration into the assembly process without requiring further modification or assembly from the manufacturer’s side. Thus, purchased components are directly acquired from suppliers as standalone parts rather than being components of other items. This classification helps in material planning and inventory management, allowing organizations to distinguish between what needs to be purchased and what can be manufactured internally. Recognizing this classification assists in clearer inventory control and resource allocation, vital for efficient production planning.