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How are stock levels calculated for a Kit?
How are stock levels calculated for a Kit?
Updated over a week ago

In the realm of inventory management, KITs are similar to puzzles. They are made up of different individual pieces that combine to create a finished product. Each component in a KIT is essential, as the availability of the complete set depends on the stock levels of these individual items.

Take, for instance, a Computer Set KIT. This KIT is an intricate assembly of four distinct variants:

Your kit is made up of 4 variants:

  • 1 Keyboard

  • 1 Monitor

  • 1 Mouse

  • 1 Laptop

Current inventory levels for the 4 variants are:

  • 10 Keyboards

  • 7 Monitors

  • 5 Mice

  • 6 Laptops

In this case, the number of complete Computer Sets you can offer hinges on the item with the lowest stock - the mice. With only 5 Mice available, you can assemble a maximum of 5 Computer Sets, regardless of the higher quantities of the other components.

Now, let's delve into a practical example. Suppose you receive an order for 3 Computer Sets. This order will proportionally reduce the stock levels of each component in the KIT, adjusting your inventory to:

New inventory levels will be:

  • 7 Keyboards (10 - 3)

  • 4 Monitors (7 - 3)

  • 2 Mice (5 - 3)

  • 3 Laptops (6 - 3)

You will notice that your Computer Set stock will show 5 On Hand, but only 2 Available since 3 were Allocated to the sales order.

Consider another scenario: You receive an order for just 1 mouse. Upon confirming this order, your stock of mice reduces to 1, directly impacting the availability of your Computer Sets. Despite having sufficient quantities of keyboards, monitors, and laptops, the limited mouse stock means you can now only offer 1 Complete Computer Set to customers.

In contrast, if an order comes in for just 1 keyboard, the overall availability of the Computer Sets remains unaffected. The reason? There's an ample supply of keyboards to fulfill both individual orders and the requirements for the complete Computer Sets.

Thus, in the intricate dance of inventory management, the availability of a KIT is always at the mercy of its most limited component. Each piece plays a pivotal role in determining how many complete sets can be offered to your customers.

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