Case Study -

This is a case study. Case studies are not timed separately. You can use as much exam time as you would like to complete each case. However, there may be additional case studies and sections on this exam. You must manage your time to ensure that you are able to complete all questions included on this exam in the time provided.

To answer the questions included in a case study, you will need to reference information that is provided in the case study. Case studies might contain exhibits and other resources that provide more information about the scenario that is described in the case study. Each question is independent of the other questions in this case study.

At the end of this case study, a review screen will appear. This screen allows you to review your answers and to make changes before you move to the next section of the exam. After you begin a new section, you cannot return to this section.

To start the case study -

To display the first question in this case study, click the Next button. Use the buttons in the left pane to explore the content of the case study before you answer the questions. Clicking these buttons displays information such as business requirements, existing environment, and problem statements. If the case study has an All Information tab, note that the information displayed is identical to the information displayed on the subsequent tabs. When you are ready to answer a question, click the Question button to return to the question.

Background -

Adatum Corporation is a multi-entity corporation located in Seattle, Washington in the United States. The company is a leading producer of specialty cakes and cookies. The company also manufactures specialty chocolates that use ethically sourced ingredients from around the world. The company plans to launch a new product line of organic chocolates later this year.

Adatum plans to implement Dynamics 365 Finance and Dynamics 365 Supply Chain Management to manage financials, inventory, end manufacturing capabilities across the entire organization,

Current environment. Distribution

• Manufactured products are stored at the distribution warehouses until they are shipped to customers.

• Individually branded pre-packaged cake and cookie mixes are supplied to specialty cafés and restaurants. The mixes are shipped directly to the cafés and restaurants from the production factories.

• The company maintains a fleet of trucks and also subcontracts shipments between the factories and warehouses to outside vendors.

Current environment. Production -

• The mixes and specialty chocolates are based on standard recipes that use precise ingredient ratios. There are strict rules around ingredient substitutions.

• All mixes use one of three base recipes as their foundation: BaseA, BaseB, and BaseC. Additional ingredients, spices, and flavorings are then added to make the final product.

• BaseA and BaseB are made in large batches and stored until they are used in the other mixes.

• Mixes with BaseA have a shelf life of six months due to the type of flour it uses.

• Specialty chocolates are manufactured only during the holiday season.

• Specialty desserts are offered during the holiday season. This year, customers may specify additional icing colors and cake layers when placing orders. Depending on the popularity of two of the new colors, they may be offered the next year.

• Cocoa oil that is extracted during the production of some of the specialty chocolates is used in the BaseB foundation mix.

• Cleaning and setup of machinery between products has been causing delays in production.

• Prices of raw ingredients such as sugar can fluctuate greatly depending on seasonal and worldwide demand.

• To property record profitability, all raw materials use the first in, first out (FIFO) costing method, while finished products are recorded at standard costs,

• Large fluctuations have been occurring at month end in costs reported due to the inability to track production runs that span from month-to-month.

• Leftover flour and sugar from production runs are collected, packaged, and donated to local food banks if the amount is too small to use in other runs.

Requirements. Production -

• To maintain Adatum’s certification as a manufacturer of ethically sourced ingredients, the traceability of every ingredient in all products to their source must be tracked.

• All products must be randomly tested for adherence to quality standards for ingredient makeup and weight.

• Similar recipes must be able to be produced in succession to limit machinery cleaning and setup times.

• All costs must be tracked for each production run and be able to be reconciled at the end of the monthly accounting cycle, including any work in process (WIP) costs and donations.

• The organic chocolate line must be set up. The ingredients cannot be mixed with non-organic ingredients in inventory.

Requirements. Warehouse -

• Mixes are generally stored and sold in 16-ounce bags. Some quantities are sold and distributed in 5, 10, and 20-gallon containers to large restaurants.

• Each mix has a single unique item number and is tracked per batch produced.

• Specialty chocolate products must be stored in climate-controlled areas of the warehouse.

Issues -

• QA TesterA discovers during a random test that the batch of a mix does not contain the necessary amount of IngredientB.

• VendorZ, who transports finished goods from PlantA to WarehouseB, is consistently late picking up product.

• Operator must consolidate partial mix batch group runs into saleable package quantities.

• UserB must set up the mix items,

• UserC learns that mixes containing BaseA have been stamped with a batch date from the flour vendor and is not being calculated from the mix manufacturing date. The mixes from the past month that might be impacted need to be identified and the calculation needs to be corrected.

• UserD must update the costs of finished goods. Accounting wants labor calculated in WIP based on how much time an individual spends performing the operation, as well as the finished goods to post to a specific different ledger account.

• UserE must set up and maintain the cost of sugar.

• UserF must decrease downtime for the machinery.

• UserG must plan the specialty desserts for the current holiday season.

You need to resolve the issue for UserC.

Which two options should you configure? Each correct answer presents a complete solution.

NOTE: Each correct selection is worth one point.