Microsoft Dynamics 365 Supply Chain Management Functional Consultant Expert — Question 161

A company produces various products using Process manufacturing.

The manufacturer makes two co-products from a formula and rarely produces the primary formula item. The costs of making the co-products are inflated. The manufacturer must update the costs of producing the co-products and change the formula to not produce the primary formula item.

You need to change the primary formula item type.

What should you do?

Answer options

• A. Change the primary formula item to use the planning item type.
• B. Change the production type to Bill of materials and recalculate the item cost.
• C. Associate the costs to produce by-products with the items.
• D. Change the cost of the primary formula item to zero and then recalculate the item cost.

Correct answer: A

Explanation

The correct answer is A because changing the primary formula item to use the planning item type allows for the correct handling of the co-products without producing the primary item. Option B is incorrect as changing to a Bill of materials does not address the need to eliminate the primary item. Option C does not solve the issue of changing the primary formula item type, and option D merely zeros out the cost without appropriately modifying the item type.