Explanation

Reference:
https://docs.microsoft.com/en-us/dynamicsax-2012/appuser-itpro/about-production-parameters-in-manufacturing
Topic 1, Fabrikam inc sanitation cleaning solutions
Background
Fabrikam Inc. is a manufacturer of sanitation cleaning solutions and equipment including carpet/floor cleaners, pressure washers, scrubbers and vacuums.
Fabrikam Inc. is a single legal entity based in New York city.
_ Current environment
Products manufactured
* Cleaning equipment
o floor cleaner
o pressure washers
o scrubbers
o vacuums
* Liquid cleaning solutions
o No scent
o Orange scent (subcontracted to a vendor named VendorA)
o Pine scent (subcontracted to a vendor named VendorA)
The production quantity for the finished unscented liquid cleaning solution is 40-liters. IngredientC 'or unscented liquid cleaning solution Is stored in inventory in 50-liter barrels and allocated in 50-liter increments.
Two barrels of IngredientC are uses to produce a barrel of unscented liquid cleaning solution.
Production sites
* The Eastern United States facility manufactures equipment.
* The Western United States facility manufactures liquid cleaning solutions.
* Raw materials and finished products are stocked at the warehouse and distributed from the warehouse.
Warehouse facilities
The warehouse consists of the following zones:

_ Requirements
Cleaning equipment manufacturing
You identify the following require merits for manufacturing cleaning equipment:
* Production is Make to Stock and must be scheduled at an operational level.
* Machine equipment is produced on an assembly line. Scheduling must be based on production orders.
* Finished products must be packaged and shipped directly from the warehouse.
* To reduce delivery times and excess inventory, equipment must be produced as needed.
* The ability to schedule production must be based on resource capacity and the availability of required materials.
* Production order operations must be scheduled to start only when capacity and materials are available at the same time and in the required quantities.
Liquid cleaning solution manufacturing
* Production is Make lo Order and is scheduled at the job level. Products must be manufactured in batches.
* Finished products must be packaged and shipped directly from the warehouse.
* You must be able to calculate the estimated consumption of ingredients and ensure that the amount is divisible by the number of units the raw material as available.
* Formula changes must be reviewed and approved. You must ensure that approved formulas cannot be deleted or edited. Approved formulas may be deactivated.
* An ingredient used to manufacture unscented cleaning solution is defined as a restricted product. You must be able to automatically print a product safety data sheet (PSDS) with the packing slip for any order that includes unscented cleaning solution.
* Production must be scheduled to start by date and time according to the order that is specified by the production route.
* You must implement a scheduled Kanban rule that meets the following requirements:
o Prevent overloading a work cell for scheduled Kanbans.
o Visualize excess inventory in a supermarket.
o Store products in supermarkets before they are consumed or shipped.
* You must link relevant financial dimension data to the inventory transactions at each site to ensure that you can trace profit and loss figures directly to East site and West site respectively.
* You must set up production operations for sub-contracting of Pine scent and Orange scent solution to VendorA to ensure that a purchase order is automatically created based on estimation of a production order.
Costing
* The price of raw materials used for manufacturing unscented cleaning solution must be tracked based upon commodity exchange pricing. The margin and cost multiplier must be set up for commodity traded raw material.
* You must set up cost calculation groups to ensure that indirect costs that originate in the manufacturing of finished goods are recognized and absorbed into the product cost.
* The production manager needs to set up picking list journals and BOM item consumption.
Reporting
* Production control parameters must be setup for reporting of automatic BOM and Route consumption.
* You must create reports that include information about cost records and categories for items, and calculation formulas for indirect costs.
* You must treat manufactured items as purchased items for cost roll-up purposes during BOM calculations and reporting.
* You must configure automatic route consumption in connection with the automatic running of Report as finished.
Inventory control
You must not be required to track the tot number for items when you enter inventory information into the system. Lot numbers for items must be entered when items are picked from inventory.
Issues
Users report the following issues:
* The production manager observes that items are being deducted from inventory two times on production jobs. A shop supervisor mistakenly registers the process for assembling batteries for the pressure washers to Registered as prepared. You must reschedule the process for a future date.
* Customer1 orders 20 barrels of unscented solution. The order is confirmed. Production must be scheduled to start on December 21 to meet the customer's delivery deadline.
* User2 reports that costs for manufactured items are twice as high as expected.
* UserD reports that the formula for the liquid cleaning solution sometimes changes during production. You must enforce the policies regarding formula editing for current and future use.

The solution meets the goal. Here is the explanation:
* To create a subcontracting activity for the painting service, you should use the following steps1:
* Create a purchase agreement for the subcontracting vendor that contains the pricing information for SP-01. This step is correct, because you need to create a purchase agreement that defines the terms and conditions for purchasing the subcontracting service from the vendor1. You also need to add a purchase agreement line for SP-01 and specify the quantity and price of the service.
* Create a vendor resource and a work cell for outsourced painting, then add the resource to the
* work cell. This step is correct, because you need to create a resource that is assigned to the vendor account and add it to a resource group that represents the subcontracting work cell1. This way, you can assign the subcontracting activity to the vendor resource.
* Create a production flow process activity using the painting work cell and the service item as the picking activity. This step is correct, because you need to create a process activity that represents the subcontracting service in the production flow1. You also need to specify the painting workcell as the resource group and SP-01 as the product of the process activity. You also need to select the Generate license plate option on the mobile device menu item that is used for reporting as finished1.
* Create a service term on the activity to tie the purchase agreement to the activity. This step is correct, because you need to create a service term that links the purchase agreement line to the production flow process activity1. A service term defines how a service item is consumed in production and how it is invoiced by the vendor.
1: Activity-based subcontracting

To view the manufacturer's suggested retail price (MSRP) for a new bill of materials (BOM) item, you need to configure a calculation group with a profit setting percentage. A calculation group is a group of settings that determine how the cost and sales price of a BOM item are calculated1. A profit setting percentage is a percentage that is added to the cost of a BOM item to calculate the sales price2. You can specify a profit setting percentage for each calculation group on the Calculation groups page3.
When you calculate the cost and sales price of a BOM item, you must select a calculation group on the Calculations page. The calculation group determines the cost model and sales price model that are used for the BOM calculation. The cost model defines how the cost of the BOM item is calculated based on the cost categories and cost groups of the components and operations. The sales price model defines how the sales price of the BOM item is calculated based on the profit setting percentage and the cost model.
By using a calculation group with a profit setting percentage, you can view the MSRP for a new BOM item when you calculate its cost and sales price. The MSRP will be shown as the calculated sales price on the Calculate item cost page. You can also view the calculation details and see how the profit setting percentage is applied to the cost of the BOM item.
The other options are not correct, because they do not allow you to view the MSRP for a new BOM item when you calculate its cost. Setting the sales price model field on the calculation group to item sales price would use the existing sales price of the BOM item from the Item price page, instead of calculating a new sales price based on a profit setting percentage. Using the category price rules to generate a trade agreement with the sales price would create a trade agreement line for the BOM item based on its category, but it would not show the MSRP when you calculate its cost. Adding a profit setting percentage to the released BOM product or to a cost group would have no effect, because these entities do not affect how the sales price of a BOM item is calculated.
1: Calculation groups 2: Profit settings 3: Create or modify calculation groups : [BOM calculations] : [Cost models and sales price models] : [Calculate costs and prices for manufactured items] : [Category pricing rules]