Free MB-330 Exam Dumps Preview

Background
Trey Research is a multinational manufacturer of health and dietary supplements based in Seattle, Washington. The company is experiencing a rapid expansion not only in its supplements but as a lifestyle brand that also sells apparel. The supplements and apparel businesses operate independently but manufacture and operate in the same legal entity.

Current environment
Current environment. Technology
Trey Research is migrating from an outdated, on-premises version of Dynamics AX to Dynamics 365
Supply Chain Management. The company wants to retain a lot of its current data structures and processes but adopt new efficiencies when the benefit is obvious. The company uses a third-party e-commerce site that is custom developed by an internal developer.

Current environment. Items
Product numbering
All items are numbered by using a smart numbering format: [ProductSKU+Size+Color+Style]. For reporting, items are queried for sales and inventory reports by using the first six digits of the item number or until the first dash is encountered.

1. A t-shirt could be 01001-S-Red for item 1001 in a size small with the color red.
2. A single energy drink could be 02001-12oz or 02001-20oz for the different sizes that product 02001 is sold in.

Product attributes

1. All clothing shares the same set of product attributes.
2. Supplements may share the same Product SKU but can have different attributes for the different size, color, or style variations of the product.
3. Product attributes that are unnecessary for an item should be excluded from the item.

Pricing

1. All items always have a default price. This price will not expire.
2. An item will have four different prices created for it every month, one for each customer tier, as detailed later in this section. The pricing expires at the end of the month. If no special pricing is created, the default item price will be used.

3. The monthly sales price in which the additional price breaks are determined is based on the estimated cost of the manufactured items.
4. Customers are categorized into four pricing tiers (A, B, C, and D) based on sales volume over the past
12 months.
5. Customers can negotiate special pricing for items in 30-day, 60-day, and 90-day increments. Quantity restrictions may be placed, depending on the item discount and promotion.
6. Promotional pricing is not used today. Pricing is restricted to monthly prices and customer-specific contract pricing.

Cost
Items use a FIFO costing model today in their current Dynamics AX 2009 environment; however, using the
FIFO costing method has created problems.

Current environment. Warehouse and inventory
1. Warehouse requirements are simplistic. There is only one site. The site has two warehouses.
2. Trey Research needs to make sure that any energy drinks and nutritional supplements are manufactured and packaged with the highest standards. Trey Research automatically inspects products when all products are reported as finished. All products are inspected again when the items are picked.
3. Energy drinks require independent tests to check for dents in packaging, carbonation levels, and fill level.
4. Nutritional supplements require separate tests for packaging, expiration date, product seal, and product labeling.
5. Government compliancy and consistency testing are handled outside of the Enterprise Resource
Planning (ERP) system.
6. Resalable products are placed on one of two racks in the warehouse.

Requirements
Requirements. Technology

Trey Research will integrate all pricing and discount capabilities to its e-commerce website.

Requirements. Items

1. Reporting on products should be streamlined as much as possible.
2. The item numbering does not have to equate to the actual item number.
3. The future costing methods adopted must be commonly accepted for manufacturers.
4. Inventory costing should be done after a full inventory valuation is complete. It should take into consideration the direct materials, direct labor, and overhead that goes into an item.
5. Any costing method used needs the ability to track cost records about an item, cost categories, and calculation formulas for indirect costs.
6. The profitability for nutritional supplements manufacturing processes needs to be expressed in terms of the cost categories for routing operations and the calculation formulas for manufacturing overheads.
7. If a vendor can no longer deliver the raw materials for the energy drinks due to supply chain issues, the costs for using an alternative vendor to source the raw materials should be used to determine the impact on profits.
8. Apparel items will not be upgraded to the new costing method until after the go-live date due to resourcing and implementation limitations from the apparel team.

Requirements. Pricing

Trey Research plans to do promotional pricing. Certain products will receive special pricing during the hours of extreme sporting events that Trey Research sponsors. Before or after the event, normal pricing will resume.

Requirements. White labeling

1. Trey Research wants to start white labeling its products under the brands of major nutritional retail store brands. These products would only be sold to specific customers.
2. Trey Research will provide and maintain a 'Compare to' price for customers to use to compare the white-labeled products. This Compare to price will also be the default item price for the customer if the customer accidentally lets a contract price expire.
3. The configuration of these restrictions must be applied automatically when creating new products for those customers.

Requirements. Warehouse and inventory

1. If products in the warehouse must be blocked from transactions for a specific reason, such as a health and safety review, warehouse users should be able to block the products quickly from the ERP system.
2. All product quality tests should be processed in a uniform and consistent manner.
3. Creation of any quality processes for products inbound to the warehouse, from the production line, or outbound from the warehouse to consumers should be automatically created to facilitate execution.

Testing requirements:

Requirement 1: 100 percent of all nutritional supplements and 50 percent of all energy drinks must be tested when production orders are completed. After a product is in testing, 100 percent of all tests must be completed.
Requirement 2: 75 percent of all nutritional supplements and energy drinks should be tested against their required tests during an outbound process.
Damaged products must be placed in one of four bins (based on product type) during the inspection process.
You must define quarantine zones to optimize product visibility throughout the testing process.

Background

Adventure Works Cycles builds stock and custom mountain bikes and is headquartered in San Diego. It has the following assembly and warehouse locations:

1. Denver, Colorado, United States
2. San Diego, California, United States
3. Budapest, Hungary

Most manufacturing is outsourced, with each facility only assembling the bikes. Parts are stocked at all facilities and may be transferred between warehouses or legal entities. All of the parts are at standard cost.

Current environment. Organizational structure

The following diagram shows the structure of Adventure Works Cycles.

1. Each of the physical locations in the United States (US) is a warehouse.
2. Hungary assembles and distributes products to the rest of the European Union (EU).
3. The EU legal entity is expected to add additional warehouse locations.
4. All legal entities roll up to a financial consolidation company.

Current environment. Purchasing

1. Higher quality tires that are used in new orders have become popular. Due to the volume of orders, the company wants to negotiate pricing with VendorC. The vendor agrees to a discounted price for 500 tires purchased within the next six months. Once the 500 tires have been purchased, the discount will be re-evaluated based on demand.
2. Once a purchase is approved, for audit purposes it cannot be changed.
3. Whenever possible, parts are purchased from vendors also within the EU. A purchase order was placed for a bike seat manufacturer in Italy.
4. Parts for custom orders may not always be kept in stock and will need to be procured.

Current environment. Purchase requisitions

The following flow chart depicts the purchase requisition process:

Requirements. Purchasing

1. Items for purchase requisitions are governed by each country. Each of the country-specific products will be grouped together for selection.
2. Purchase orders must follow the requisition process.
3. All existing purchase orders for brakes must account for the change to VendorB.

Requirements. Inventory

1. Standard costs are based on purchase fluctuations within a single month.
2. Tires use floating zones due to limited warehouse space.

Requirements. Operations

Due to recent brake failures, Adventure Works Cycles plans to purchase brakes from VendorB instead of VendorA. Although the brakes from Vendor B will continue to use the same item number as the brakes from VendorA, the price is slightly higher from VendorB. Adventure Works Cycles will pay list price from VendorB. The order for VendorB needs approval and the usual approver for purchase requisitions is on vacation.

All brakes from VendorA that are in stock must be tested. The process for brake testing must be implemented for all inbound orders. Quality orders must be automatically created upon receipt of the first shipment against a purchase order only. Inventory stocking locations must be consolidated after the brakes are tested.

UserC needs to consolidate brake inventory after it has been cleared for sale.

Ordering of the new brakes order will incur an additional cost because it is a rush order.

Requirements. Custom orders

1. Custom orders are placed for items that do not exist in the item master.
2. Hungary does not process custom orders.
3. The United States does process custom paint orders. Most custom paint colors are special order and require purchase requisitions.
4. Quotes must be obtained from a minimum of two suppliers per company policy and compared for the shipping, costs, and other variables. Quotes will not be selected based on lowest price only.

Issues

1. A special order for 2.6 high-end tires is received. This item is no longer in stock from the current vendor.
2. Goods have been received in stock, but the matching invoice has not yet been received at the time of month close.
3. UserA needs to set up pricing for the items purchased from VendorC and ensure that accounting validates the receipt and invoice against the agreement.
4. UserB needs to send out a request for quotation (RFQ) for custom paint. The vendor will be selected based on pricing, volume discounts, and lead time.

Background
Adventure Works Cycles is high-end bicycle manufacturer in North America. The company sells 40 standard models as well as 100 limited-edition models per year to boutique retailers domestically.
Adventure Works has had the most success with the limited-edition bicycles. These bicycles have high margins, high demand, and a strong following with the younger generation biking community.

Current environment
Technology
During a recent global pandemic, the sales of bicycles increased enormously. To support this growth, Adventure Works is going to invest in Dynamics 365 Supply Chain Management to standardize and streamline operations. Operations are currently managed with a custom enterprise resource planning (ERP) system and Microsoft Excel worksheets that address ERP product gaps.
Many processes are still maintained in Excel worksheets and then loaded into the ERP application.
Adventure Works wants to implement only those Dynamics 365 features that are areas of future investment for Microsoft, even if it means they implement fewer features.

Bicycles
1. Bicycle models can either be standard or made in a limited-edition release.
2. Bicycles are built based on a single item number that can have different sizes and frame styles. The sizes are XS, S, M, L, and XL. The frame styles are Male, Female, and Unisex.
3. The size and frame style combinations have different prices and barcodes.
4. All other bicycle properties are informational only.
5. Information-only properties do not have standardization or validation, which makes it easy to mistype data during product entry and difficult to identify mistakes.
6. Some limited-edition bicycles are not properly marked as limited edition in the current product management system due to the yes/no key indicator defaulting to no. This causes significant issues with item searching and reporting on the different bicycle models.

Limited-edition bicycles
1. The most recent limited-edition models include integrated face mask holders and extra storage containers welded to the bicycle frame.
2. The bicycles are restricted to one purchase per retailer per week.
3. The bicycles are announced on social media and are available for sale to retailers on the same day they are announced.
4. Customers can buy the bicycles at retailers shortly after they are announced.

5. The bicycles are sometimes available only through charity auctions.

Sales
1. Due to the global pandemic, it is difficult to keep products in stock. Retailers are buying as much inventory as possible each week.
2. Retailers email their sales to Adventure Works. The sales team in charge of each retailer manually enters the information into a shared Excel worksheet.
3. Retailers are required to submit one consolidated sales order by Wednesday every week so that the Adventure Works fulfillment team can organize and adjust sales order quantities based on availability.
4. Retailers are invoiced every three to five weeks. Adventure Works uses a manual process for invoicing.
The increased volume of purchases makes it difficult to keep up with invoicing.
5. To accommodate the demand for the Adventure Works limited-edition bicycles, the sales team enters orders for these items for fulfillment as soon as they appear on the SKU list.
6. Retailers can sometimes bypass Adventure Works order restriction policy. When this happens, it creates additional work for the fulfillment team.

Outbound
1. Finished bicycles are assigned a unique code to identify and track each bicycle.
2. Each bicycle that is picked for an outbound order is transferred to a quality control bench where it undergoes a 21-point mechanical inspection.
3. Bicycles that pass the mechanical inspection have their unique bicycle identification number recorded in the completed inspection list. The number is also recorded in the shipping manifest for customers to be able to verify that the bicycle
4. that was tested is the one that they received.
5. If a bicycle does not pass the mechanical inspection, the bicycle is moved to a quarantine location and another bicycle is picked and tested as a replacement for the order.

Inventory
1. Replenishment is simple but manual. It is currently all handled in Excel.
2. Every bicycle part for each standard model has a line in an Excel worksheet.
3. Adventure Works wants each storage space in the warehouse to be filled to capacity with the current products.
4. The team knows how many bill of materials (BOM) items can fit in the spaces without overflowing.
5. BOM items that make up the bicycles have different storage capacities.
6. Adventure Works uses Excel worksheets to make decisions about planned orders by period based on the supply and demand for finished bicycles.

Wheels
1. There are four types of wheels for all the bicycle models.
2. Customers often order a spare tire.
3. Wheels sometimes just disappear from the warehouse storage.
4. Adventure Works purchases wheels from only one manufacturer.

Master planning
1. There is no formal master planning process.
2. Replenishment activities occur weekly.

Requirements
Bicycles
All BOM items used the manufacturing process must be configured as unique products in Dynamics 365
Supply Chain Management.
The following manufactured bicycles' properties must be configured in Dynamics 365 Supply Chain Management:
1.
Size: XS. S, M, L, XL
2.
Frame style: Men, Women, Unisex
3.
Limited edition: [Blank], No, Yes
4.
Year: 2010-2020
5.
Manufacturer's note: Free form text up to 250 characters
6.
Rear suspension travel: 130 millimeters, 150 millimeters
7.
Full suspension: No, Yes

sales
1. Limited-edition bicycles must be systematically restricted to one bicycle per sales order. Overrides must not be allowed.

2. Retailers must automatically be invoiced once a month in a consolidated invoice for all delivered sales orders.
3. Limited-edition model bicycles must not be allowed for inclusion on sales orders until the bicycles' official release date.

Outbound
1. A bicycle's unique identification number must systematically be created as part of the standardized business process.
2. Bicycles must be pulled from a bin location in a First In, First Out (FIFO) inventory model and moved to a packing station.

Inventory
1. Overflow of any bicycle parts in the warehouse must be prevented, except for wheels.
2. System-generated recommendations to adjust Adventure Works' on-hand stock of wheels based on historical trends must be provided.
3. BOM items must be replenished before they run out. There must always be quantity available on-hand.
4. The system must maintain all inventory requirements through automated processes.

Master planning (MRP)
1. The tool that replaces the Excel worksheet must be able to show the supply and demand for the product family of finished bicycles and BOMs by period in a single screen. This single form screen will also be used for general supply and demand
2. inquiry only and not require intensive processing tasks. Inquiries to this form may result in non-system decisions and not with creating any planned orders.
3. The tool must allow for the creation of new planned production, sales, purchase, and transfer orders.
4. The MRP solution must have the best performance possible and allow for planned orders to be run in the middle of the day.
5. Planned orders that will not be firmed must not be changed. Adventure Works wants to be able to reference the planned orders later against any manual orders created until they feel more comfortable with the system.
6. Once Adventure Works is comfortable with the numbers that the system recommends, Adventure
Works wants to implement a mechanism to fully automate the generation of orders.

Background

Best for You Organics Company started as a home-based business.
The founders began making handmade soaps and bath products in their kitchen. As sales increased, the business established a production facility and distribution center that supplies three retail stores.

Soaps and bath products are manufactured in the production facility and are stocked in the warehouse for distribution to the retail stores. Employees at retail stores use mobile point of sale (MPOS) tablet devices to sell the products to customers.

The company structure is a single legal entity with two sites as shown in the diagram below:

Current environment

Best for You Organics plans to introduce a new product line of face creams. Each product in the new line uses the same base ingredients but includes a different extract (for example, lime, avocado, kiwi). The marketing department is preparing to introduce the new product line. Minimal inventory will be held in the warehouse.

The company uses a cloud-based deployment of Dynamics 365 Supply Chain Management to manage finances for all company operations and locations. The company does not use Bill of Materials (BOM) versioning.

The production and warehouse facility is set up with the following organizational hierarchy:

External customers include:

1. CustomerA: a wall-in store customer (business-to-consumer)
2. CustomerB: a customer with an existing account (business-to-business)

External vendors include:

1. VendorA: a trucking company
2. VendorB: a raw materials supplier

Requirements. General

The new product line must be set up in the system and readily available for sale when the company introduces the product line to the public at an upcoming trade show.

Requirements. Production

You must configure the system to produce the new products:

1. Ensure that the warehouse stocks the minimum quantities of raw materials to produce the products.
2. Use a single version per item.
3. Implement FIFO inventory valuation methods.
4. Track raw and finished goods using different General ledger accounts.
5. Use a primary location to determine where to stock product in the warehouse,
6. Configure alternate locations in the warehouse to hold overstock products and ref the primary location as-needed.

Requirements. Shipments

You identify the following requirements related to shipping:

1. Ship product to retail stores weekly
2. Stores require a packing slip to check in merchandise. Drivers require transport documentation and charge per mile to the stores.
3. Shipments to Store1 must be scheduled for Monday, Wednesday, or Friday. Store1 will sometimes pick up their own deliveries when an order is small because they have their own van. Shipments to Store2 and Store3 must be scheduled for Tuesday or Thursday.
4. You must transmit Advance Shipping Notifications (ASN's) to the stores prior to deliveries.
5. Set up the system configuration to allow for store transfers.
6. Set up the system so that products may be shipped to the retail stores as bulk orders.

7. Set up the transport providers to deliver products from the warehouse to the retails stores.

Requirements. Reporting

Once the new products are available in stores, review 30 day of historical sales data from day-to-day transactions will determine the reorder quantities.

Set up reporting to allow the product line to be costed and tracked independent of other items.

Requirements. Pricing and inventory

You identify the following requirements related to pricing and inventory:

1. Determine the quantity of the new product that can be produced and ready for sale within the first 90 days. Ensure that specialty packaging is on hand for retail sales. The packaging must be shipped directly to the stores from the vendor.
2. Stores must not inventory the packaging materials. Stores must maintain a 30-day supply of specialty packaging materials. Stores must reorder packaging materials as needed.
3. Retail store customers must pay full retail price. Resellers must receive a 10 percent discount off the list price.

Background

Best for You Organics Company started as a home-based business.
The founders began making handmade soaps and bath products in their kitchen. As sales increased, the business established a production facility and distribution center that supplies three retail stores.

Soaps and bath products are manufactured in the production facility and are stocked in the warehouse for distribution to the retail stores. Employees at retail stores use mobile point of sale (MPOS) tablet devices to sell the products to customers.

The company structure is a single legal entity with two sites as shown in the diagram below:

Current environment

Best for You Organics plans to introduce a new product line of face creams. Each product in the new line uses the same base ingredients but includes a different extract (for example, lime, avocado, kiwi). The marketing department is preparing to introduce the new product line. Minimal inventory will be held in the warehouse.

The company uses a cloud-based deployment of Dynamics 365 Supply Chain Management to manage finances for all company operations and locations. The company does not use Bill of Materials (BOM) versioning.

The production and warehouse facility is set up with the following organizational hierarchy:

External customers include:

1. CustomerA: a wall-in store customer (business-to-consumer)
2. CustomerB: a customer with an existing account (business-to-business)

External vendors include:

1. VendorA: a trucking company
2. VendorB: a raw materials supplier

Requirements. General

The new product line must be set up in the system and readily available for sale when the company introduces the product line to the public at an upcoming trade show.

Requirements. Production

You must configure the system to produce the new products:

1. Ensure that the warehouse stocks the minimum quantities of raw materials to produce the products.
2. Use a single version per item.
3. Implement FIFO inventory valuation methods.
4. Track raw and finished goods using different General ledger accounts.
5. Use a primary location to determine where to stock product in the warehouse,
6. Configure alternate locations in the warehouse to hold overstock products and ref the primary location as-needed.

Requirements. Shipments

You identify the following requirements related to shipping:

1. Ship product to retail stores weekly
2. Stores require a packing slip to check in merchandise. Drivers require transport documentation and charge per mile to the stores.
3. Shipments to Store1 must be scheduled for Monday, Wednesday, or Friday. Store1 will sometimes pick up their own deliveries when an order is small because they have their own van. Shipments to Store2 and Store3 must be scheduled for Tuesday or Thursday.
4. You must transmit Advance Shipping Notifications (ASN's) to the stores prior to deliveries.
5. Set up the system configuration to allow for store transfers.
6. Set up the system so that products may be shipped to the retail stores as bulk orders.

7. Set up the transport providers to deliver products from the warehouse to the retails stores.

Requirements. Reporting

Once the new products are available in stores, review 30 day of historical sales data from day-to-day transactions will determine the reorder quantities.

Set up reporting to allow the product line to be costed and tracked independent of other items.

Requirements. Pricing and inventory

You identify the following requirements related to pricing and inventory:

1. Determine the quantity of the new product that can be produced and ready for sale within the first 90 days. Ensure that specialty packaging is on hand for retail sales. The packaging must be shipped directly to the stores from the vendor.
2. Stores must not inventory the packaging materials. Stores must maintain a 30-day supply of specialty packaging materials. Stores must reorder packaging materials as needed.
3. Retail store customers must pay full retail price. Resellers must receive a 10 percent discount off the list price.

business requirements, the existing environment, and problem statements.
If the case study includes an All Information tab, note that the information shown there is identical to the information presented on the individual tabs. When you are ready to answer a question, click the Question button to return to the question.

Background

Munson's Pickles and Preserves Farm is a distribution company that supplies pickles, preserves, pickling supplies, and accessory products to local farmers' markets and grocery stores. Munson's Pickles and Preserves Farm does not manufacture products and does not provide canning services.

Current Environment

Munson's Pickles and Preserves Farm uses an accounting system that is disconnected from its warehousing system. This separation has caused challenges in controlling and valuing inventory. Based on these issues, Munson's Pickles and Preserves Farm has decided to implement Dynamics 365 Finance and Dynamics 365 Supply Chain Management.

Warehousing

1. Munson's Pickles and Preserves Farm operates a single warehouse that serves as the distribution center for all products.
2. The warehouse contains bulk storage locations and racking; however, location names and location numbering are not currently defined.
3. Bulk locations are used to store excess inventory that does not fit in picking locations.
4. The warehouse is temperature controlled, with locations grouped into two zones: refrigerated and non-perishable.
5. Inventory adjustments are performed frequently due to insufficient inventory controls.

Inventory Data

1. Item numbers are inconsistent and currently use a smart-numbering format, such as 1-23-PKL and 44-
24-PICK.
2. Cucumbers are not grown by Munson's Pickles and Preserves Farm and are sourced from local farmers.
3. Pickles are sold in bottle sizes of 8 oz, 16 oz, and 32 oz, and bottles are packed in cases.
4. Pickles may be spears, chips, or whole within the bottles. Shape does not affect cost when the flavor is the same.
5. Pickle flavors include sweet, spicy, and dill, and each flavor has a different price.
6. Preserves are offered in multiple flavors, such as mango, strawberry, and grape, and are seasonal items. Due to fluctuating flavors and quantities, preserves remain vendor-owned until sold. Mango preserves require refrigeration, while other preserve flavors do not.

7. Many items are sold as pickling accessories or supplies.
8. Some inventory items, such as vinegar, have expiration dates.
9. Fast-moving items are identified based on inventory turns per quarter. Sweet and spicy pickles are the highest-volume items.

Purchasing and Sales

1. Munson's Pickles and Preserves Farm operates an online store at munsonspicklesandpreservesfarm.com.
2. The online store sells only a subset of products, limited to accessories such as bottles and jars.
3. A new product line of kosher pickles will be distributed by Munson's Pickles and Preserves Farm.
4. VendorA is the primary supplier for Munson's Pickles and Preserves Farm. VendorB is the second-largest supplier.

Requirements
Warehousing

1. The warehouse manager requires that fast-moving items be easily accessible to order pickers in AisleA, with no more than one item per bin location in AisleA. Sweet and spicy pickles exceed available capacity in AisleA and must also be stored in bulk locations.
Spicy pickles must have no less than half a pallet available in AisleA at all times.
Sweet pickles must have sufficient inventory in AisleA before warehouse work waves are created.
2. Strawberry preserves are selling slowly during the current season and are stored in higher bin locations because they are not considered fast-moving items.

Inventory and Data

1. Item numbers must be restructured to support a streamlined numbering system. The legacy item number must be stored in Dynamics 365 for cross-reference purposes. Munson's Pickles and Preserves Farm has selected 0000001 as the new item number format for pickles. The value PKL will be stored as an attribute.
2. Pickle item numbers must be consolidated into a single item number where possible, regardless of bottle size.
3. Cucumbers must be sold at actual cost because they are special-order items.
4. Kosher pickles must be created in the item master. Kosher pickles use the same jar sizes and flavors as standard pickles but include a kosher designation and have a higher cost.
5. Vinegar and other perishable items must have batch number and expiration date tracking enabled.
6. A batch of mango preserves was discarded because warehouse workers stored the product in the non-perishable zone instead of the refrigerated zone.

Purchasing and Sales

1. Cucumbers must be sourced from local vendors and purchased only for special orders.
2. Munson's Pickles and Preserves Farm has signed an exclusivity agreement with VendorA. Buyers must purchase products only from VendorA.
3. VendorA has acquired VendorB. VendorA requires that all agreements with VendorA also apply to VendorB during the transition period while the companies are being merged.
4. VendorC supplies preserves and requires the following:
Shipment requirement: VendorC retains ownership of preserves after shipment to Munson's Pickles and Preserves Farm until the items are sold.
On-hand requirement: VendorC must have visibility into on-hand preserve inventory at the Munson's
Pickles and Preserves Farm warehouse.

Issues

1. CustomerD reported receiving vinegar with only one week remaining before expiration, which did not allow sufficient time for use. CustomerD now requires that all vinegar deliveries have at least 30 days remaining before expiration.
2. A customer reported receiving regular pickles instead of kosher pickles. Inventory Control Clerk 2 confirmed that kosher and non-kosher pickles of the same variety are stored in the same warehouse location, contributing to picking errors.
3. A salesperson reported incorrect margin calculations on a special customer order because cucumber cost was calculated using the most recent receipt rather than the specific receipt associated with the customer order.

4. An internal audit revealed that large quantities of pickles were written off as damaged multiple times over the past year. No supporting documentation, disposal records, or management approvals exist, creating concerns regarding potential theft.
5. Pickles are received in cases, and the number of jars per case varies by size:
8 oz jars: 12 per case
16 oz jars: 6 per case
6. The varying quantities per case increase warehouse handling complexity.
7. The receiving clerk requires that broken bottles of vinegar be moved to a damage location named
LocationA. Expired vinegar must be moved to a return-to-vendor location named LocationB. All other vinegar should be put away and sold according to standard location directives.
8. Operator1 was moving a pallet of strawberry preserves to the shipping dock and dropped the pallet.
The operator must ensure that the damaged preserves are not available for shipment until damage assessment is completed.
9. Operator2 attempted to print wave labels for item
0000001. The labels began printing but jammed. At the same time, the printer battery required recharging, and the labels needed to be reprinted.

Background

Wide World importers is a distribution company whose primary customers are small boutique shops which sell globally-sourced products including unique or hand-crafted items such as perfumes and ceramicware.
Through the Wide World Importers sales cycle, the commission-based sales team identifies opportunities and negotiates with shops by using a quoting process. The products may or may not already exist in the
company's current product list.

The company has the following divisions and areas of responsibility:

Current environment

Wide World Importers use Dynamics 365 Finance and Dynamics 365 Supply Chain Management. There is a single legal entity.

The primary distribution center for the company is located Las Vegas, Nevada, USA. There is an additional warehouse in California which receives imported goods from container ships. When goods are received in California, the goods are transferred to Nevada for distribution. No orders ae shipped directly from California.

Requirements. Sales

The company has two teams of sales representatives: East and West. Each team has one representative for each of the following categories of goods: perfumes, ceramicware, and all other goods. Sales representatives are paid commissions based on sales. Commissions must be paid based on the home office location for customers. For example, commission for a customer that is headquartered in the Western United States is paid to the West group of sales representatives.

Sales representatives are responsible for driving new business. Company executives must be able to see metrics that define the companies that the sales representatives are targeting, where there is potential to do business, and where quotes are being generated. Customer records must not be created until a sale is confirmed.

The sales team quoted a new perfume for a customer named Customer1. The customer has shipping locations in the following regions: United States, Austria, and Japan. Sales must only be made to the US and Japan due to product ingredients. Automated checks must be put into place so that users do not have to remember to select the correct item.

Requirements. Testing
The company periodically performs testing on ceramicware as it is received to determine whether the products contain lead. The company labels and markets ceramicware as Lead Free or Not for food use.
Perfumes may contain restricted ingredients that cannot be sold to customers in the European Union. The company performs testing on perfumes and has processes to ensure that perfumes containing restricted ingredients are not sold to customers in Europe.

Ten percent of all ceramicware items received must be tested for lead. The process for managing testing must be automated. There must be tolerances setup that define the acceptable amount of lead levels in a product.

Requirements. Inventory management

The inventory team must control costing of items by using FIFO principles. The finance team must be able to see updated FIFO adjustments throughout the month but will only settle FIFO for month-end reporting.

Inventory close must be run at the end of each month. A report must be provided to the finance team that includes the physical quantities and inventory value for items, with totals at the bottom. The warehouse team needs a similar report but does not want the inventory value included. During inventory close, some items cannot be fully costed because the issue cannot be settled against the receipt. The finance team must know which items were excluded.

Other inventory requirements

1. Inventory must be reserved against physical inventory.
2. Items must be grouped so that the inventory costing can posted to the ledger by using the following groups: perfumes, ceramicware, other goods. All goods are FIFO. Financial reports must be grouped by these three categories, even though transactions from all categories posts to the same ledger accounts.
3. Wide World Importers plans to import a specific type of pottery from a local company in Mexico that handmakes the goods. The pottery must be available in orange or red colors. The cost is the same regardless of the color selection.
4. A new line of perfumes is being introduced. The procurement team must be able to identify which perfumes are men's or women's fragrances, and must be able to further categorize perfumes as Perfume, Eau de Perfume, Eau de Toilette, Eau de Cologne, or Eau Fraiche.
5. You must set up a structure of products for classifying each item for purchase, sales, and reporting analysis.

Issue

Customer service representatives report that some inventory shows as ordered reserved when the ordered reserved parameter is turned off.

An item that is typically carried is out of stock. A customer named Customer2 wants to place a special rush order for the item. This will result in a significantly increased cost from the supplier. The finance team does not want to have this special order affect the FIFO tiers.

Background

Adventure Works Cycles builds stock and custom mountain bikes and is headquartered in San Diego. It has the following assembly and warehouse locations:

1. Denver, Colorado, United States
2. San Diego, California, United States
3. Budapest, Hungary

Most manufacturing is outsourced, with each facility only assembling the bikes. Parts are stocked at all facilities and may be transferred between warehouses or legal entities. All of the parts are at standard cost.

Current environment. Organizational structure

The following diagram shows the structure of Adventure Works Cycles.

1. Each of the physical locations in the United States (US) is a warehouse.
2. Hungary assembles and distributes products to the rest of the European Union (EU).
3. The EU legal entity is expected to add additional warehouse locations.
4. All legal entities roll up to a financial consolidation company.

Current environment. Purchasing

1. Higher quality tires that are used in new orders have become popular. Due to the volume of orders, the company wants to negotiate pricing with VendorC. The vendor agrees to a discounted price for 500 tires purchased within the next six months. Once the 500 tires have been purchased, the discount will be re-evaluated based on demand.
2. Once a purchase is approved, for audit purposes it cannot be changed.
3. Whenever possible, parts are purchased from vendors also within the EU. A purchase order was placed for a bike seat manufacturer in Italy.
4. Parts for custom orders may not always be kept in stock and will need to be procured.

Current environment. Purchase requisitions

The following flow chart depicts the purchase requisition process:

Requirements. Purchasing

1. Items for purchase requisitions are governed by each country. Each of the country-specific products will be grouped together for selection.
2. Purchase orders must follow the requisition process.
3. All existing purchase orders for brakes must account for the change to VendorB.

Requirements. Inventory

1. Standard costs are based on purchase fluctuations within a single month.
2. Tires use floating zones due to limited warehouse space.

Requirements. Operations

Due to recent brake failures, Adventure Works Cycles plans to purchase brakes from VendorB instead of VendorA. Although the brakes from Vendor B will continue to use the same item number as the brakes from VendorA, the price is slightly higher from VendorB. Adventure Works Cycles will pay list price from VendorB. The order for VendorB needs approval and the usual approver for purchase requisitions is on vacation.

All brakes from VendorA that are in stock must be tested. The process for brake testing must be implemented for all inbound orders. Quality orders must be automatically created upon receipt of the first shipment against a purchase order only. Inventory stocking locations must be consolidated after the brakes are tested.

UserC needs to consolidate brake inventory after it has been cleared for sale.

Ordering of the new brakes order will incur an additional cost because it is a rush order.

Requirements. Custom orders

1. Custom orders are placed for items that do not exist in the item master.
2. Hungary does not process custom orders.
3. The United States does process custom paint orders. Most custom paint colors are special order and require purchase requisitions.
4. Quotes must be obtained from a minimum of two suppliers per company policy and compared for the shipping, costs, and other variables. Quotes will not be selected based on lowest price only.

Issues

1. A special order for 2.6 high-end tires is received. This item is no longer in stock from the current vendor.
2. Goods have been received in stock, but the matching invoice has not yet been received at the time of month close.
3. UserA needs to set up pricing for the items purchased from VendorC and ensure that accounting validates the receipt and invoice against the agreement.
4. UserB needs to send out a request for quotation (RFQ) for custom paint. The vendor will be selected based on pricing, volume discounts, and lead time.

Background

Coho Vineyard & Winery is a parent company with two subsidiaries: Coho Vineyard and Coho Winery.
Coho Vineyard is based in Medford, Oregon. The vineyard grows grapes and produces and bottles wine.
Coho Winery, based in Grants Pass, Oregon, distributes packaged wine to businesses and consumers. In addition to wine, the winery sells imported cheese and olive oil.

Current Environment

1. Coho Vineyard & Winery requires financial reporting from both Coho Vineyard and Coho Winery. The parent company consolidates financials using a third-party tool.
2. Coho Winery currently manages inventory and financials using spreadsheets, separate from the parent company.

Inventory and Warehousing

1. The entire warehouse is temperature controlled. A refrigerated section of the warehouse is used for items that require colder storage.
2. Items do not have fixed locations in the warehouse.
3. Coho currently uses smart numbering for cheese items. Items start with F for France and U for the United States, such as the following:
F11234 = French cheese
U14567 = U.S. cheese
4. Wine does not currently use smart numbering.
5. Inventory is valued using First In, First Out (FIFO).
6. Olive oil has a 12-month shelf life.
7. WineA is expensive and is not regularly stocked in the warehouse.
8. WineB must be stored in the refrigerated section of the warehouse.
9. WineC is non-refrigerated wine and represents the majority of warehouse inventory.

Vendors and Procurement

1. Cheese is purchased from vendors in two countries: France and the United States.
2. Non-cheese items can be purchased from vendors in other countries or regions.
3. Olive oil is purchased and sold in full cases of six bottles.
4. When Coho Vineyard produces more wine than expected in a season, rebate programs are offered to

any company whose monthly purchases exceed $5,000.

General

The Coho Vineyard & Winery parent company, as well as Coho Vineyard, will not be included in the implementation of Dynamics 365 Finance and Dynamics 365 Supply Chain Management for Coho Winery.
They plan to implement these systems as separate legal entities within the next five years.

Inventory and Warehousing (Future Requirements)

1.
Items must be renumbered in the new system.
2. Separate item numbers must be used for each imported item to support simplified reporting by source country or region.
3. Advanced Warehouse Management capabilities must be enabled in the new system.
4. Each bottle of wine must have a single item number.
5. The vintage of each bottle changes annually and may affect the cost of the bottle. This cost must be tracked by year.
6. Some bottles of wine require refrigeration. The system must automatically determine appropriate warehouse storage locations for these items.
7. Wine must be grouped in a product hierarchy, such as the following:
Red
Cabernet
Merlot
White
Chardonnay
Pinot
8. Inventory value must be recorded at the end of each month.
9. Each month, olive oil on-hand inventory is evaluated. Any inventory with less than six months of remaining shelf life is sold to a discount retail store. If less than 90 days of shelf life remains, the olive oil is donated or destroyed.
10. A minimum of 20 cases and a maximum of 50 cases of olive oil must be on hand and not reserved for upcoming customer orders.
11. WineB must be refrigerated.

Vendors and Procurement (Future Requirements)

1. The cheese smart numbering system will not be used in the future. Instead, standard system configurations must be used to ensure the correct cheese items are ordered based on the country or region of origin.
2. Olive oil must be managed in full cases only; however, inventory cost must be calculated at the each level.
3. If any bottle of olive oil is broken within a case, the remaining eaches must be sold at a discounted price.
4. Vendor rebates must be calculated and submitted as claims.
5. Rebate programs are passed on to retailers selling Coho Winery wines. These rebates must be claimed from Coho Vineyard.
6. Purchase orders (POs) must be maintained online with tracked changes between vendors and buyers.
7. The controller has decided that WineA must not be included in financial inventory on the Coho Winery books. The winery has an agreement with the vendor that ownership of WineA remains with the vendor until a later date.
8. Vendor1 sends bulk shipments. Coho Winery does not always have sufficient warehouse staff available to receive inventory. The company requires Vendor1 to send advanced shipping notices (ASNs).
9. The operations coordinator must schedule inbound loads. The company requires automation of inbound load creation where possible.

Issues

1. The warehouse is at maximum capacity, and empty bin locations are not always available. The warehouse manager wants to establish fast-moving pick locations for WineB on the warehouse floor, with replenishment from higher rack storage.
2. Coho Winery recently conducted an internal audit risk assessment. The assessment found that inventory value reports were stored in spreadsheets, which can be easily edited and lack adequate controls.
3. After olive oil is counted, multiple cases are destroyed due to shelf life expiration. The inventory planner

must determine whether a new purchase order should be placed for olive oil.
4. Vendor rebate claims are frequently rejected because they were miscalculated by failing to include discounts.
5. The purchasing manager receives multiple complaints regarding purchase orders:
Issue 1: PO changes are not accepted and confirmed, resulting in out-of-stock situations.
Issue 2: Vendors do not have control over PO responses and instead rely on email communication.