Pick Line Item Short and Eliminate Remaining Demand | MB-320 Exam Answer
Question
A manufacturer uses discreet orders and manually consumes raw material after reporting products as finished.
You are performing an end-of-month closing for remaining picking lists on production orders.
You must not be required to consume the full amount of material on production order picking lists as a result of improved production efficiency.
When the production manager verifies that no material is left to consume, there are remaining back-ordered amounts.
You need to pick the line item short and eliminate the remaining demand.
What should you do?
Answers
Explanations
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A. B. C. D.C.
In this scenario, the manufacturer uses discreet orders and manually consumes raw material after reporting products as finished. At the end of the month, the remaining picking lists on production orders need to be closed. However, due to improved production efficiency, the full amount of material on the production order picking lists may not need to be consumed. As a result, there may be remaining back-ordered amounts that need to be eliminated.
To address this situation, the appropriate action is to select option C: Enter the consumption amount on the line to match the actual amount used and select end on the production order picking list.
This option is the best choice because it allows for accurate recording of the actual amount of material used, while also closing out the production order picking list. By selecting "end" on the production order picking list, the remaining back-ordered amounts will be eliminated.
Option A, which suggests deleting the item from the Bill of materials for the finished good, is not a viable solution because this action would permanently remove the item from the Bill of materials and affect future production orders.
Option B, which suggests entering the consumption amount on the line to match the actual amount used and deleting the remaining amount, is not a best practice because it does not accurately reflect the actual amount of material used in production.
Option D, which suggests changing the Coverage group on item option to manual, is not applicable to this situation as it is not relevant to the elimination of remaining back-ordered amounts. Changing the Coverage group on item option to manual would impact how inventory is managed and tracked for the specific item, but it would not address the specific issue at hand.
