Microsoft Dynamics 365 Supply Chain Management Functional Consultant Expert — Question 4

You are building the Bill of materials (BOM) for a new production item. The new item has a subcomponent.
Subproduction orders for the subcomponent must be created when estimating production orders.
You need to configure the BOM line to generate subproduction orders.
Which BOM line type should you use?

Answer options

• A. Vendor
• B. Item
• C. Phantom
• D. Pegged supply

Correct answer: D

Explanation

The correct answer is D, Pegged supply, as this BOM line type is specifically designed to generate subproduction orders when needed. The other options do not facilitate the creation of subproduction orders in this context, making them unsuitable for the requirement.