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

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, 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.