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A bill of material created for use in production planning that permits various components to be grouped together to simplify administration. This is especially useful if a company's finished productsrepresent many possible permutations that can be created from the various parts kept in stock. A placeholder part number may be created to represent a cluster of components that is common to all the finished products. For example, if all the permutations of a given product use the same base, screws, brackets, and wires, these would all be represented by a single part number on the bill of material. Also called phantom bill of material or planning bill of material.
This is an accepted "trick" to SIMPLIFY BOM handling and make it more FLEXIBLE to accommodate product variations and special configuration/customization of the products.
I fully agree with all answers been added.
Pseudos are artificial groupings of components useful for planning. Unlike phantoms, however, the components of a pseudo cannot be manufactured together into a stock-able parent configuration. For this reason, pseudos can never be inventoried.
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