The low level code indicates the position of an item in the bills of material. This code is necessary to the requirements planning procedure.
By convention, items that are in no bill of material are at the zero level. Their direct sub-components are on level 1, sub-sub-components on level 2, and so on.
A same item can be found on two different levels according to its bills of material. The low level code is the lowest level on which it is found in all bills of material.
This low level code is used in a descending way during the requirements calculation and in a ascending way in the items costs rollup function. You must calculate it again if you add a product structure record.
The Purchased items and the Resource items that can not have any bill of materials have a low level code set to 99.
The Family
items which are above the salable items, have no low level code (on the item
record it appears * in the Level field).
When you are sure every product structure record has been entered, the Low Level Code Calculation function computes the low level code again for the set of the items
This function calculates also the cumulative lead time and the time fence of the item from the components production times and the possible offsets which are noted on the product structure records.