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Purchasing JIT Kits

JIT Kits are not stocked

  • the components are stocked and are picked only when an order is to be shipped
  • Hence the the term JIT Kit - a kit that is assembled Just In Time (JIT) instead of every beng stocked.

JIT kits are common for kits where

  • Product bundles that are not commonly sold and hence not worth pre-preparing
  • Have significant variations so it is simpler to pick what the customer ordered
  • Have very large components that have to be stored in separate locations

JIT Kits may be purchased when:

  1. A kit has very large components that are stored around the warehouse
  2. none of the components can be sold individually
  3. none of the components can be purchased individually
    1. ie - the supplier sells all the components as a kit not individually

Purchasing a JIT Kit

The JIT item is put on the purchase order like any other item and can be on the same PO as other items

Kits can be split into containers like other items

Landed costing

Landed costs are entered at the KIT level

For fast moving items A complex Landed costs is recommended because the stock is created using the cost estimate

Before the PO is received the landed cost will only show the kit - after stock receipt the components are shown

Receiving a JIT Kit

When a PO is receipted to the warehouse > the JIT Kit item is "Exploded" to it's components because the JIT Kit item is not stocked only the components are

Hence the kit is not listed on the stock receipt form.

Count the components and put them away like other stock

When using Complex Landed cost - Components can only be stocked once all components have been counted so the allocations of cost from the kit can be calculated.

For information about SaaSplications go to http://saasplications.com.au