Case Study 3 - Adatum Corporation Background Adatum Corporation is a multi-entity corporation located in Seattle, Washington in the United States. The company is a leading producer of specialty…

Case Study 3 - Adatum Corporation Background 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, end manufacturing capabilities across the entire organization, Current environment Distribution

• 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. Production

• 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 property record profitability, all 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. Requirements Production

• 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. Warehouse

• 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.

Issues

• 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 WarehouseB, is consistently late picking

up product.

• Operator 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.

You need to resolve the issue for UserB. What are two possible ways to achieve this goal? Each correct answer presents a complete solution. NOTE: Each correct selection is worth one point.