A company is implementing Dynamics 365 Supply Chain Management with batch-controlled items. The management team wants to ensure that sales margins are calculated based on the cost of the product. Because the company values inventory using FIFO, the cost of the product fluctuates. The product is typically less expensive in the beginning of a sales cycle and becomes more expensive toward the end of the sales cycle. You must ensure that products are sold and that margins are calculated based on the cost of the inventory. You need to ensure that the correct costs are assigned. What should you configure?
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Answer: D
Question 182 · 237 in bank
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 - School of Fine Art is a distribution company that sells school supply items to primary and secondary schools. These include items such as pens, pencils, paper, notebooks, chalk, desks, acrylic paints, blackboards, dry erase markers, and whiteboard paint. Due to increased demand for colored pencils, lead times are longer for these pencils. School of Fine Art plans to expand sales into this market. School of Fine Art plans to implement Dynamics 365 Supply Chain Management to manage the business. Current environment. Company structure School of Fine Art consists of two legal entities. Primary company - • Located in Dublin, Ireland. • Has a single named warehouse. • Is the primary distribution center for both companies. Second company - • Is located in Glasgow, Scotland. • Includes the following warehouses: Glasgow1, Glasgow2. ○ Glasgow1 is used primarily to supply items regionally. ○ Glasgow2 serves as local storage for vendor-owned inventory and bulk storage for School of Fine Art's inventory. Current environment. General processes School of Fine Art uses a combination of spreadsheets and paper forms to manage the business. • All sales, purchases, and inventory are tracked in spreadsheets that are password protected by managers. • Managers frequently share spreadsheet passwords so that other users can make edits on their behalf. Inventory quantities and values are unreliable. • The spreadsheets are often incorrectly updated, have entry errors, and broken formulas for calculations. • Purchase order receipts, picking lists, packing slips, and invoices are all handwritten on pre-printed, three-part forms. • Late summer is the company's busiest time. During this time, workers are typically on the warehouse floor or making rush deliveries to schools to meet last-minute needs. Current environment. Inventory and warehousing • School of Fine Art values inventory by using FIFO costing methods. • Inventory in the warehouses cannot be distinguished as available inventory or inventory that is sold to a customer and waiting to be picked. This creates inventory inflation during cycle counts and later shortages because warehouse workers count items that are already promised to customers and waiting to be shipped. • Glasgow2 space is fully allocated to vendors. • Due to space constraints, school orders for photocopiers are shipped from the vendor to the school. • Crayons are stored as separate item numbers depending on whether they are in a box or a case. This creates issues when counting inventory to determine the total number of crayons in stock. • Lack of inventory controls has led to shortages on sales orders, creating backorders and unhappy schools. • Inventory is ordered quarterly due to the seasonality of the business. • Items can change annually based on popular sizes, colors, and styles for each new school season. The creation of the different configurations is a manual process, which creates so much overhead that temporary workers are brought in to do the data entry. Current environment. Purchasing - • Reordering is manually managed by the buyers looking at the seasonal spikes for the start of the school year, slowing around the end-of-year holidays until the following school year. • Pens are readily available products that are rarely discounted for sale. • Photocopiers are only available for sale on the Glasgow region. • Photocopy paper and construction paper are ordered by the pallet into Dublin1 and must be broken down into smaller sizes. The pallets are typically broken down and then split between what stays in Dublin1 and what is shipped to Glasgow1. • Chalk and blackboards are slower sellers, so many vendors do not carry these items. School of Fine Art purchases these products from a single vendor. There are no alternative vendors available. • School of Fine Art agrees to purchase a new line of smartboards from a vendor. The agreed-upon smartboard purchase prices will have a cost price per 55-inch, 75-inch, or 85-inch smartboard. • The company purchases pencils for the following warehouses: ○ Glasgow1: • standard pencils from Vendor A • colored pencils from Vendor B ○ Dublin1: • standard pencils from Vendor A • colored pencils from Vendor A • As whiteboard paint grows in popularity, so does the demand. This causes supply shortages. Whiteboard paint is ordered six months in advance. Current environment. Customer sales • The company contractually agrees to prices for some items with schools prior to the start of each school year. • Schools may order bulk cases of products and choose to distribute further breakdowns, such as a case of crayons, which are then distributed to classrooms by the box. • Pens do not require contracts with schools because they are low margin and do not have supply chain shortages. • Painting supplies such as acrylic paint, canvases, and easels do not require a special contract and are sold at regular list price to all schools. • Schools that offer painting classes are part of a program that provides special pricing on the painting supplies. • Chalk and blackboards are ordered less frequently than they were in past years. Schools are choosing to use whiteboard paint, which is a lower cost than ordering and installing the whiteboards. Requirements. Customers and sales • The system must have the ability to limit product purchase amounts by a single school to prevent stock shortages for other schools. • Schools are obligated to purchase the agreed amount for specific items per the school year. • Customer service must be able to easily enter items for sales orders and identify stock shortages. • Sales of whiteboard paint must be limited so that one school does not buy all the inventory and force backorders for other schools. • Schools must agree to the amount of whiteboard paint they will purchase for the whole school year. Requirements. Inventory costing - • Inventory must have associated costs except for the vendor storage in Glasgow2. • The vendor storage must still contain quantities but not include cost in inventory valuations. • At the end of each month, the costing manager must be able to identify how many items will not be fully settled. • Annual configuration changes to items must be automatically created where possible. • The company must be able to track costs for colored pencils and standard pencils separately. Requirements. Inventory - • Warehouse workers must be able to use their mobile phones and the mobile app to take calls and create transactions in the warehouse. • The desks must use a single item number and barcode regardless of year manufactured and the vendor. • Water-based paints from the vendor must be received in pails. • Acrylic paint must be managed by batches and expiration dates. • Pencils must be categorized as colored pencils or standard pencils. The individual colors of each colored pencil (such as red, green, and blue) will not be tracked. • The creation of unique smartboard items must be kept to a minimum. Issues - • WarehouseWorker1 works in Glasgow2. The worker receives a request to ship pallets of paper from the warehouse to Glasgow1 and Dublin1. WarehouseWorker1 must create the shipments in the system to transfer the pallets of paper from Glasgow1 to Dublin1. • The number of backorders for desks has increased. Customer service representatives struggle to select a desk item number that has inventory on hand. The desks are the same item, but the manufacturer vendor and year differ. • A school calls customer service to report that its photocopier is broken. The school needs expedited shipment of a replacement. • A school that is part of the special paint program reports that a sale price on canvas last month was a better price than its paint program price. The school requests a price adjustment. • A school reports that different shipments of acrylic paints are slightly different in color. • The sales team decides to have a flash sale on pens for one month only. The person entering the Sales order line should be able to communicate the information to the customer on the Sales order line. • Schools are reporting that chalk and blackboards are broken upon receipt. A worker in Dublin1 opens some cases of these products in the warehouse and finds that they are also broken. You must implement processes to enforce inventory inspection for a percentage of each purchase order line received. You must block all inventory for a purchase order line if the inspection fails. You need to configure the smartboards. What should you create?
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Answer: D
Question 183 · 237 in bank
A company uses Dynamics 365 Supply Chain Management. A customer negotiated a sales price for 100 items for the next 60 days. Management reviews reports on how many items the customer has purchased at this price. The customer has an existing order for the agreed sales agreement quantity. The customer calls to add an additional quantity that exceeds the sales agreement maximum amount. The customer is not entitled to the discounted sales price outside of the agreement. You need to ensure that the customer receives the ordered amount and that the management reports are correct. Which action should you perform?
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Answer: D
Question 184 · 237 in bank
A company uses transportation management to manage its outbound shipments to customers. The company fulfils customer orders directly from multiple warehouses. A customer requests receipt of an order in one unified shipment. The product must be consolidated from multiple warehouses, not one shipment from each warehouse. You need to configure the component to consolidate the loads before sending them to the customer. Which component should you configure?
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Answer: D
Question 185 · 237 in bank
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 - Coho Vineyard & Winery is a parent company that has two subsidiaries: Coho Vineyard and Coho Winery. Coho Vineyard is based in Medford, Oregon. The vineyard grows the grapes and then produces and bottles the wine. Coho Winery, based in Grants Pass, Oregon, distributes packaged wine to businesses and consumers. The winery sells imported cheese and olive oil in addition to the wines. Current environment. Technology landscape • Coho Vineyard & Winery requires financial reporting from both Coho Vineyard and Coho Winery. The parent company consolidates financials in a third-party tool. • Coho Winery currently manages inventory and financials on spreadsheets separately from the parent company. Current environment. Inventory and warehousing • The entire warehouse is temperature controlled. A refrigerated section of the warehouse is used for items that require colder storage. • The items do not have fixed locations in the warehouse. • Coho uses smart numbering for cheese items today. The items start with F for France and U for United States such as the following: • F11234 = French cheese • U14567 = US cheese • Currently, wine does not use smart numbering. • Inventory is valued at First In, First-Out (FIFO). • Olive oil has a 12-month shelf life. • WineA is expensive and not regularly stocked in the warehouse. • WineB must be in the refrigerated section of the warehouse. • WineC is non-refrigerated wine and is the majority of inventory in the warehouse. Current environment. Vendors and procurement • Cheese is purchased from vendors in two countries: France and United States. • Non-cheese items can be purchased from vendors in other countries or regions. • Olive oil is bought and sold in full cases of six each. • When Coho Vineyard produces more wine than expected in a season, rebate programs are offered to any company whose monthly purchases exceed $5,000. Requirements. General - • The Coho Vineyard & Winery parent company, as well as Coho Vineyard, will not be considered in the implementation of Dynamics 365 Finance and Dynamics 365 Supply Chain Management for Coho Winery. They plan to implement them as separate legal entities in the next five years. Requirements. Inventory and warehousing • Items must be renumbered in the new system. • Separate item numbers must be used for each imported item for use in simplified reporting by source country or region. • Advanced Warehouse Management capabilities must be enabled in the new system. • Each bottle of wine has a single item number. • The vintage of each bottle will change annually and may affect the cost of the bottle. This cost must be tracked by year. • Some bottles of wine require refrigeration. The system must automatically define where items must be stored in the warehouse. • Wine must be grouped in a hierarchy such as the following: • Red • Cabernet • Merlot • White • Chardonnay • Pinot • Inventory value must be stored at each month end. • Each month, the olive oil on-hand inventory is evaluated. Anything with less than six months left on the shelf life is sold to a discount retail store. If less than 90 days remains for the shelf life, then the olive oil is donated or destroyed. • At least 20 cases of olive oil and no more than 50 cases are on hand and not reserved for upcoming customer orders. • WineB must be refrigerated. Requirements. Vendors and procurement • The cheese smart numbering system will not be used in the future. Instead, the system must use standard configurations to ensure the correct cheese items are used for the correct country or region when ordering. • Olive oil must be managed in full cases only, although the inventory cost must be calculated as cages. • Should any bottle of olive oil be broken within a case, the cases will be sold at a discounted price. • Vendor rebates must be calculated and submitted for a claim. • Rebate programs are passed on to the retailers selling Coho Winery wines. The rebates must be claimed from Coho Vineyard. • Purchase orders (POs) must be maintained online with tracked changes between the vendors and the buyers. • The controller decides WineA must not be held in financial inventory on the Coho Winery books. The winery makes an agreement with the vendor that WineA will be owned by the vendor until a later date. • Vendor1 sends bulk shipments. Coho Winery does not always have enough warehouse staff to receive inventory. The company requires Vendor1 to send advanced shipping notices (ASNs). • The operations coordinator must schedule inbound loads. The company requires automation of inbound load creation where possible. Issues - • The warehouse is at maximum capacity. Empty bin locations are not always available. • The warehouse manager wants to establish fast moving locations for WineB on the floor and refill locations from higher rack storage. • Coho Winery recently conducted an internal audit risk assessment. The risk assessment found that inventory value reports were stored in spreadsheets. The spreadsheets can easily be edited and lack controls. • After olive oil is counted, multiple cases are destroyed due to shelf life. The inventory planner must determine if a new PO should be placed for olive oil. • The vendor rebates claims are often rejected because the claims were miscalculated by not including discounts. • The purchasing manager receives multiple complaints regarding POs: • Issue 1: PO changes are not accepted and confirmed, resulting in out-of-stock issues. • Issue 2: Vendors do not have control on responses to POs. Instead, the vendors rely on emails. You need to configure a new item that contains a vintage. What should you configure for the vintage?
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Answer: C
Question 186 · 237 in bank
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 - Coho Vineyard & Winery is a parent company that has two subsidiaries: Coho Vineyard and Coho Winery. Coho Vineyard is based in Medford, Oregon. The vineyard grows the grapes and then produces and bottles the wine. Coho Winery, based in Grants Pass, Oregon, distributes packaged wine to businesses and consumers. The winery sells imported cheese and olive oil in addition to the wines. Current environment. Technology landscape • Coho Vineyard & Winery requires financial reporting from both Coho Vineyard and Coho Winery. The parent company consolidates financials in a third-party tool. • Coho Winery currently manages inventory and financials on spreadsheets separately from the parent company. Current environment. Inventory and warehousing • The entire warehouse is temperature controlled. A refrigerated section of the warehouse is used for items that require colder storage. • The items do not have fixed locations in the warehouse. • Coho uses smart numbering for cheese items today. The items start with F for France and U for United States such as the following: • F11234 = French cheese • U14567 = US cheese • Currently, wine does not use smart numbering. • Inventory is valued at First In, First-Out (FIFO). • Olive oil has a 12-month shelf life. • WineA is expensive and not regularly stocked in the warehouse. • WineB must be in the refrigerated section of the warehouse. • WineC is non-refrigerated wine and is the majority of inventory in the warehouse. Current environment. Vendors and procurement • Cheese is purchased from vendors in two countries: France and United States. • Non-cheese items can be purchased from vendors in other countries or regions. • Olive oil is bought and sold in full cases of six each. • When Coho Vineyard produces more wine than expected in a season, rebate programs are offered to any company whose monthly purchases exceed $5,000. Requirements. General - • The Coho Vineyard & Winery parent company, as well as Coho Vineyard, will not be considered in the implementation of Dynamics 365 Finance and Dynamics 365 Supply Chain Management for Coho Winery. They plan to implement them as separate legal entities in the next five years. Requirements. Inventory and warehousing • Items must be renumbered in the new system. • Separate item numbers must be used for each imported item for use in simplified reporting by source country or region. • Advanced Warehouse Management capabilities must be enabled in the new system. • Each bottle of wine has a single item number. • The vintage of each bottle will change annually and may affect the cost of the bottle. This cost must be tracked by year. • Some bottles of wine require refrigeration. The system must automatically define where items must be stored in the warehouse. • Wine must be grouped in a hierarchy such as the following: • Red • Cabernet • Merlot • White • Chardonnay • Pinot • Inventory value must be stored at each month end. • Each month, the olive oil on-hand inventory is evaluated. Anything with less than six months left on the shelf life is sold to a discount retail store. If less than 90 days remains for the shelf life, then the olive oil is donated or destroyed. • At least 20 cases of olive oil and no more than 50 cases are on hand and not reserved for upcoming customer orders. • WineB must be refrigerated. Requirements. Vendors and procurement • The cheese smart numbering system will not be used in the future. Instead, the system must use standard configurations to ensure the correct cheese items are used for the correct country or region when ordering. • Olive oil must be managed in full cases only, although the inventory cost must be calculated as cages. • Should any bottle of olive oil be broken within a case, the cases will be sold at a discounted price. • Vendor rebates must be calculated and submitted for a claim. • Rebate programs are passed on to the retailers selling Coho Winery wines. The rebates must be claimed from Coho Vineyard. • Purchase orders (POs) must be maintained online with tracked changes between the vendors and the buyers. • The controller decides WineA must not be held in financial inventory on the Coho Winery books. The winery makes an agreement with the vendor that WineA will be owned by the vendor until a later date. • Vendor1 sends bulk shipments. Coho Winery does not always have enough warehouse staff to receive inventory. The company requires Vendor1 to send advanced shipping notices (ASNs). • The operations coordinator must schedule inbound loads. The company requires automation of inbound load creation where possible. Issues - • The warehouse is at maximum capacity. Empty bin locations are not always available. • The warehouse manager wants to establish fast moving locations for WineB on the floor and refill locations from higher rack storage. • Coho Winery recently conducted an internal audit risk assessment. The risk assessment found that inventory value reports were stored in spreadsheets. The spreadsheets can easily be edited and lack controls. • After olive oil is counted, multiple cases are destroyed due to shelf life. The inventory planner must determine if a new PO should be placed for olive oil. • The vendor rebates claims are often rejected because the claims were miscalculated by not including discounts. • The purchasing manager receives multiple complaints regarding POs: • Issue 1: PO changes are not accepted and confirmed, resulting in out-of-stock issues. • Issue 2: Vendors do not have control on responses to POs. Instead, the vendors rely on emails. You need to configure cheese smart numbering to meet the requirement. Which component should you configure?
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Answer: A
Question 187 · 237 in bank
A company uses Dynamics 365 Supply Chain Management and has a single legal entity. The company manually creates and adds new items frequently. Many of these items require the same setup as existing items. The company requires a streamlined process to copy fields from another item upon creation and allow for other employees to use the same process. You need to configure the simplified process. What should you do?
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Answer: C
Question 188 · 237 in bank
A manufacturing company is implementing Dynamics 365 Supply Chain Management. The company plans to relocate an existing manufacturing facility to a larger facility soon. The company has the following requirements: • The existing facility must be configured to manage fixed assets. • The new facility must be preconfigured in the system and ready for the transition. The controller is concerned that people might use the preconfiguration before the transition. You need to configure the system to minimize the risk of use before the transition. What should you configure?
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Answer: D
Question 189 · 237 in bank
Select 2
A manufacturing company uses Dynamics 365 Supply Chain Management. The company replaced its burners to limit carbon dioxide emissions. The new burners require frequent servicing to be compliant with environmental regulations. The new burners are more complex and take longer to service than the previous burners. The production controller must track fuel use in liters to schedule timely maintenance. The additional time taken to plan maintenance must be considered. You must configure the system to meet the requirements. Which two actions should you perform? Each correct answer presents part of the solution. NOTE: Each correct selection is worth one point.
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Answer: AD
Question 190 · 237 in bank
Select 2
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 - Coho Vineyard & Winery is a parent company that has two subsidiaries: Coho Vineyard and Coho Winery. Coho Vineyard is based in Medford, Oregon. The vineyard grows the grapes and then produces and bottles the wine. Coho Winery, based in Grants Pass, Oregon, distributes packaged wine to businesses and consumers. The winery sells imported cheese and olive oil in addition to the wines. Current environment. Technology landscape • Coho Vineyard & Winery requires financial reporting from both Coho Vineyard and Coho Winery. The parent company consolidates financials in a third-party tool. • Coho Winery currently manages inventory and financials on spreadsheets separately from the parent company. Current environment. Inventory and warehousing • The entire warehouse is temperature controlled. A refrigerated section of the warehouse is used for items that require colder storage. • The items do not have fixed locations in the warehouse. • Coho uses smart numbering for cheese items today. The items start with F for France and U for United States such as the following: • F11234 = French cheese • U14567 = US cheese • Currently, wine does not use smart numbering. • Inventory is valued at First In, First-Out (FIFO). • Olive oil has a 12-month shelf life. • WineA is expensive and not regularly stocked in the warehouse. • WineB must be in the refrigerated section of the warehouse. • WineC is non-refrigerated wine and is the majority of inventory in the warehouse. Current environment. Vendors and procurement • Cheese is purchased from vendors in two countries: France and United States. • Non-cheese items can be purchased from vendors in other countries or regions. • Olive oil is bought and sold in full cases of six each. • When Coho Vineyard produces more wine than expected in a season, rebate programs are offered to any company whose monthly purchases exceed $5,000. Requirements. General - • The Coho Vineyard & Winery parent company, as well as Coho Vineyard, will not be considered in the implementation of Dynamics 365 Finance and Dynamics 365 Supply Chain Management for Coho Winery. They plan to implement them as separate legal entities in the next five years. Requirements. Inventory and warehousing • Items must be renumbered in the new system. • Separate item numbers must be used for each imported item for use in simplified reporting by source country or region. • Advanced Warehouse Management capabilities must be enabled in the new system. • Each bottle of wine has a single item number. • The vintage of each bottle will change annually and may affect the cost of the bottle. This cost must be tracked by year. • Some bottles of wine require refrigeration. The system must automatically define where items must be stored in the warehouse. • Wine must be grouped in a hierarchy such as the following: • Red • Cabernet • Merlot • White • Chardonnay • Pinot • Inventory value must be stored at each month end. • Each month, the olive oil on-hand inventory is evaluated. Anything with less than six months left on the shelf life is sold to a discount retail store. If less than 90 days remains for the shelf life, then the olive oil is donated or destroyed. • At least 20 cases of olive oil and no more than 50 cases are on hand and not reserved for upcoming customer orders. • WineB must be refrigerated. Requirements. Vendors and procurement • The cheese smart numbering system will not be used in the future. Instead, the system must use standard configurations to ensure the correct cheese items are used for the correct country or region when ordering. • Olive oil must be managed in full cases only, although the inventory cost must be calculated as cages. • Should any bottle of olive oil be broken within a case, the cases will be sold at a discounted price. • Vendor rebates must be calculated and submitted for a claim. • Rebate programs are passed on to the retailers selling Coho Winery wines. The rebates must be claimed from Coho Vineyard. • Purchase orders (POs) must be maintained online with tracked changes between the vendors and the buyers. • The controller decides WineA must not be held in financial inventory on the Coho Winery books. The winery makes an agreement with the vendor that WineA will be owned by the vendor until a later date. • Vendor1 sends bulk shipments. Coho Winery does not always have enough warehouse staff to receive inventory. The company requires Vendor1 to send advanced shipping notices (ASNs). • The operations coordinator must schedule inbound loads. The company requires automation of inbound load creation where possible. Issues - • The warehouse is at maximum capacity. Empty bin locations are not always available. • The warehouse manager wants to establish fast moving locations for WineB on the floor and refill locations from higher rack storage. • Coho Winery recently conducted an internal audit risk assessment. The risk assessment found that inventory value reports were stored in spreadsheets. The spreadsheets can easily be edited and lack controls. • After olive oil is counted, multiple cases are destroyed due to shelf life. The inventory planner must determine if a new PO should be placed for olive oil. • The vendor rebates claims are often rejected because the claims were miscalculated by not including discounts. • The purchasing manager receives multiple complaints regarding POs: • Issue 1: PO changes are not accepted and confirmed, resulting in out-of-stock issues. • Issue 2: Vendors do not have control on responses to POs. Instead, the vendors rely on emails. You must configure the olive oil case requirements. Which two configurations should you use for PO creation by using MRP? Each correct answer presents part of the solution NOTE: Each correct selection is worth one point.
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Answer: BC
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