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Question 71

A company uses Process manufacturing for most products and Discrete manufacturing for other products. The company is creating a formula for a new product. The new item will be used to make a name brand product and two generic brand products.

This item has the following requirements:

• Production of the name brand and generic products must use the same formula.

• The company must produce all three items at the same time.

You need to create a produced item that can make two generic items and one main item.

How should you set up the item?

Create the name brand item as a formula planning production of type formula.

Create the two generic items as a formula planning production of type formula

Copy the formula from the name brand item into each of the generic items.

Create the name brand item as a Bills of material production type item.

Create the two generic items as a sub-assembly on the Bills of material for the name brand product.

Create a product as the main product and use a planning item production type.

Create the name brand and two generic products as co-products for the planning item.

Create the name brand item as a formula planning production type planning item.

Create the two generic items as a formula planning production type planning items.

Copy the formula from the name brand item into each of the generic items.

Correct Answer: C

To meet the requirements of producing the name brand and the generic products at the same time using the same formula, you should create a product as the main product and use a planning item production type. Then, create the name brand and two generic products as co-products for the planning item. This setup allows for the simultaneous production of all items using one unified production plan and formula.

Discussion

MFoolOption: C

It should be C. Planning items are not stock items.