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too many production orders. Assume an auto Engine. There are hundreds of components. You might structure them as: Engine block and parts, camshaft and parts, and 6 piston assemblies. But you don't want to create 3 production orders, too much hassle. So you want to issue the components for the piston assembly in the same production order as the Engine block. So you create a new material number for the Piston assembly, but you mark it as a phantom assembly. That means that when you create the bom for the Engine assembly, you only have two assemblies, the Engine block and the Camshaft. You add the phantom assembly for the Piston Assembly to the Engine block BOM, saying it requires 8 of the phantom assembly. When the production order is created for the Engine block, the picklist will also include all of the components of the 8 piston assemblies
Phantom Its an WIP Supply type. The WIP Supply type is attached to items in item master in WIP tab but while creating BOM for an assembly the WIP supply type for the components and subassembly can be changed and need not required to be same as specified in Item master. A phantom assembly is a non-stocked assembly that lets you group together material needed to produce a subassembly. When you create a bill of material for a parent item, you can specify whether a component is a phantom. One bill of material can represent a phantom subassembly for one parent item, and a stocked subassembly for another parent item.
Oracle Work in Process explodes through a phantom subassembly to the components as if the components were tied directly to the parent assembly. You can define routing for phantoms assemblies the same way as other assemblies. Work in Process ignores phantom assembly routings when you define a job or repetitive schedule. You can compute manufacturing and cumulative lead times for phantom assemblies that have routings. If you do not want to offset the components of a phantom assembly in the planning process, exclude the phantom item from the lead time calculations. In general, phantom assemblies behave like normal assemblies when they represent a top level assembly, such as when you master schedule them or manufacture them using a discrete job. As a subassembly, however, they lose their identity as distinct assemblies and are a collection of their components. The components of the phantom subassembly are included on the job and on the pick list of the job-not the phantom itself. When model or option class bills are components to another bill of material, the component supply type is phantom.
IMP
Phantom items are typically used in multilevel 'Bill of Materials' (BOM), where a single row of a phantom item serves the purpose of an entire sub-tree. These items do not exist in the inventory. They are designed to be used in situations where several BOMs would have the same basic components. Instead of having to enter the same multiple rows into the BOM, 1 row with the phantom item can be used.
A practical application of a phantom item would be, for example, a basic cake mix for a bakery. This basic recipe plus additional items is used for a variety of different cakes.