How should you set up the item?

A company uses Process manufacturing for most products and Discreet manufacturing for other products. The company is creating a formula for a new product. The new item will be used to make a name brand product and two generic brand products.

This item has the following requirements:

• Production of the name brand and generic products must use the same formula.

• The company must produce all three items at the same time.

You need to create a produced item that can make two generic items and one main item.

How should you set up the item?
A . Create the name brand product as the main product and use a formula production type. Create the two generic items as a formula planning production type planning items. Copy the formula from the name brand item into each of the generic items.
B . Create the name brand product as the main product and use a formula production type. Create the two generic products as co-products as part of the formula for the name brand product.
C . Create the name brand item as a Bills of material production type item.
Create the two generic items as a sub-assembly on the Bills of material for the name brand product.
D . Create the name brand item as a Bills of material production type item.
Add the two generic items on the Bills of material for the name brand product and use line type phantom.

View Answer

Answer: B