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Topic 3, Adventure Works
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Background
Adventure Works Cycles is a high-end bicycle manufacturer in North America. Their standard model bicycles are available year-round. Limited-edition bicycle models are released several times a year to boutique retailers domestically.
Adventure Works has had the most success with their limited-edition bicycles. These bicycles have high margins, are in high demand, and have a strong following with the younger generation biking community.
Current environment
General
Adventure Works expects to triple their manufacturing capabilities in the next few years due to increasing demand. The company plans to invest in Dynamics 365 Finance, Dynamics 365 Supply Chain Management, and the Power Platform products to migrate from a custom-built enterprise resource planning (ERP) solution and Microsoft Excel worksheets.
Adventure Works sells only to the United States and Canada. Despite their limited market, they cannot keep up with current demand. Over time, they want to expand their market to remain profitable.
Adventure Works has no capabilities or budget to undertake any development beyond Excel formula-level tasks.
Bicycle manufacturing
Bicycle models are measured and reported against how well a single model performs as a sum of all the variations of that model. For example, the Street Kid YOLO model sold 25,000 units in 2019 across all variations of the product, but the Purple Female frame made up 30 percent of that model's sales.
The Street Kid YOLO models sell in different volumes depending on the market.
The creation of production orders for bicycles occurs monthly and is based on historical sales.
Each part of a bicycle's assembly occurs at a different station in the Adventure Works production facility.
A piece of paper that has eight sections accompanies a bicycle throughout the manufacturing process. As each step is completed, the respective section is completed and signed off by a production worker.
The completed paper is used in the put-away process by the warehouse workers.
Financials
The standard model and limited-edition bicycle teams are separate operating units within the manufacturing division. Financials are tracked and reported separately even though they are produced and sold in the same sales channels.
Updates to the standard model bicycle models are created when a part for a bicycle becomes unavailable. This can change the cost of the product.
An updated model of a bicycle with new parts will be maintained as a new item and have a new price. However, it will look like the exact same product to retailers and distributors.
Manufacturing process
The bicycle manufacturing process is shown in the following graphic:

Limited-edition bicycle process
The limited-edition bicycles are made up of an Adventure Works custom frame with all other parts created by local artists and manufacturers.
Each bicycle has a unique set of new items that make up the bill of materials (BOM) because all parts are created to specification.
A single pilot limited-edition bicycle is created as a proof of concept.
Adventure Works occasionally reuses components from existing bicycles, but most limited-edition bicycles are made of handcrafted components designed to specifications.
Each limited-edition bicycle is built, and hand signed by a single Adventure Works artisan.
Sales price must be auto calculated after the cost price is derived.
Before creating the proof of concept limited-edition bicycle, the approximate sales price needs to be determined through a cost-plus 20 percent calculation.
All items except for the frame in the prototype process are considered finished items and can be sold individually.
The frame items require modifications in accordance with the manufacturing process as well as painting.
Each Adventure Works limited-edition bicycle artisan is scheduled to create a specific number of bicycles in a production run that must be completed by a certain date.
Limited-edition bicycle artisans work exclusively on a given run of limited-edition bicycles and are not able to work on other tasks.
Limited-edition bicycle BOM assembly process
The prototype process for the limited-edition bicycles is shown in the following graphic:

Requirements
General
Adventure Works will consist of three legal entities: the primary legal entity of the United States (AWUS), sales in Canada (AWCA), and an international expansion (AWIN).
AWIN must be able to sell only standard model bicycles.
AWUS and AWCA must be able to sell both standard model and limited-edition bicycles.
Warehouse workers must use the Warehouse Management mobile application to manage all inventory inbound and outbound from the warehouse.
Bicycle manufacturing
The handlebars, back wheels, and front wheels must not change for any of the bicycle model configurations.
Standard model bicycle production scheduling must be configured to start as soon as possible.
Bicycle components must be automatically reserved when the item is released to the production floor.
Standard model bicycle production must be automatically created on a predefined schedule.
As soon as bicycles are completed, they must be available to fulfill the backlog of orders.
Limited-edition bicycle production must be configured to meet the end date for when the bicycles must be completed.
Production orders need to track financials by standard model or limited-edition bicycle manufacturing teams.
The system must log the immediate consumption of BOMs for traceability.
All inventory is warehouse enabled.
Finished goods are reported as finished by the warehouse worker who picks up the finished product from the packaging area.
Finished products must automatically have put-away work completed for them.
New limited-edition bicycle process
Adventure Works is creating a new, limited-edition bicycle to commemorate the company's tenth anniversary. The limited-edition bicycle will be designed for charity events and be produced for the summer season.
The bicycle must be available in men's, women's, and unisex frame styles. It will be painted in one of 50 hand-painted designs representing the charity of the customer's choosing.
A limited run of 100 bicycles must be created.
The limited-edition bicycles must use the same production process as the standard model bicycles.
The limited-edition bicycles must use the same parts used for previous limited-edition bicycles, except for the unique paint colors.
Frames must be painted in-house.
Five painting options are available only in the unisex frame style.
New limited-edition bicycle orders
Customers must be able to place sales orders for the item in the chosen frame configuration, including style and color.
When an order for the new limited-edition bicycle is created, payment must be provided.
An approval for an order must exist for the order to be processed.
Upon approval of an order, production must start immediately and not require re-entry of data.

Explanation:

Explanation:

Explanation:
A screen shot of a computer Description automatically generated

Topic 5, Adatum CorporationAdatum 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, and manufacturing capabilities across the entire organization.
*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 cafes and restaurants. The mixes are shipped directly to the cafes 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.
*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 properly record profitability, ail 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.
*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.
*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.
*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 Warehouses, is consistently late picking up product.
*OperatorA 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.

Explanation:
To configure the reservations for production, you should do the following:
* Define configuration for paint reservation: You should configure the Item model group for paint. The Item model group determines the inventory policies for an item, such as reservation, tracking, and costing1. You can set the reservation policy for paint to FIFO date-controlled, which means that the inventory reservation is controlled by a sorting date according to the FIFO principle2. You can also set the Backward from ship date option, which means that the inventory reservation is controlled by the last update physical date according to the FIFO rule2.
* Define the reservation principle for paint: You should set the reservation principle to Start. This means that inventory is reserved when production starts3. This way, you can ensure that paint is available at the production station when needed