Build-on-demand kit

Build-on-demand (BOD) kits have unique product numbers. Unlike prebuilt kits, BOD kits do not exist in inventory as a single product and are not assembled until a sales order is placed. Only the components of BOD kits are stored in inventory. The sales order pick ticket serves as the work order for the kit, and it is assembled as it is picked for shipping. If the kit has variable components, the customer service representative can enter the necessary information in the Kits view. Because BOD kits are not pre-assembled, you have several options when entering a kit in Sales Order Entry:

BOD kits can have variable quantity components, required components, supersede or substitute components, and optional components. A prebuilt kit can also be a component of a BOD kit because the prebuilt kit exists in inventory as a single item. Components are set up in KP Components Setup.
You can add stock, nonstock, and special order components to the kit when it is ordered. A nonstock component may even be required when the kit is built, depending on its setups.
You can delete non-required components when the kit is ordered.
You can create partial kit back orders for BOD kits with insufficient quantities of components.

Availability

The concept of availability for a build-on-demand kit assumes that there are none built in inventory, so the number of "available" BOD kits is the number that can be built at any given time. The net available quantity for a BOD kit displayed by the system is the quantity available to build, not the quantity on hand.

Component and Demand

BOD kits record component demand when the kit is sold. Demand is not recorded for the kit because the kit product is not stocked as a single unit. If a component for a work order is out of stock, the entire kit is back ordered, and the components that are in stock remain reserved until the component is received. If you override the reserved quantity in Sales Order Entry or Sales Shipping Feedback Entry and there is quantity available to be reserved, it is not reserved.

Sourcing kit components

If you do not have the components required to complete the BOD kits ordered, the components can be sourced in Sales Order Entry. Components, including nonstock components and prebuilt kits, can be tied to new or existing purchase orders, warehouse transfers, and KP work orders. Lines items for kit components in Purchase Order Entry and Transfer Entry can also be manually tied to the sales order. If there is insufficient quantity on hand to build the kit and you do not source the required component(s), replenishment occurs through the Recommended Replenishment Action Report process.

Rolling costs and prices

You can combine individual component costs or prices together to become the cost or price of the finished kit. This is known as rolling costs or prices. A build-on-demand kit always rolls the components’ current costs when it is ordered by the customer. This includes components that are added or removed in the ordering process. Rolling the price is optional. If you roll price and add or remove components, the price adjusts accordingly.