Exercise - Create co-products and by-products

  • 25 minutes

Contoso process company USPI has purchased a small oil refinery and will start to manufacture gasoline from a stream of crude oil. In this process, the co-products of kerosene and diesel fuel are produced, and a by-product of wastewater is created.

As the product designer, you have been asked to create the following items in Supply Chain Management:

  • Product Number: P15000
    • Product Name: Gasoline
    • Production Type: Formula
  • Product Number: P16000
    • Product Name: Kerosene
    • Production Type: Co-product
  • Product Number: P17000
    • Product Name: Diesel Fuel
    • Production Type: Co-product
  • Product Number: B18000
    • Product Name: Waste Water
    • Production Type: By-product
  • Product Number: M12000
    • Product Name: Crude Oil
    • Production Type: None

Create a new formula product

  1. Go to Product information management > Products > Released products.
  2. Select New.
  3. In the Product number field, enter P15000.
  4. In the Product name field, enter Gasoline.
  5. In the Item model group field, enter or select a value.
  6. In the Item group field, enter or select a value.
  7. In the Storage dimension group field, enter or select a value.
  8. In the Tracking dimension group field, enter or select a value.
  9. In the Inventory unit field, enter gal.
  10. In the Purchase unit field, enter gal.
  11. In the Sales unit field, enter gal.
  12. In the BOM unit field, enter gal.
  13. Select OK.
  14. On the Engineer FastTab, in the Production type field, select Formula.
  15. Select Save.
  16. Close the page.

Create the new co-products

  1. Select New.
  2. In the Product number field, enter P16000.
  3. In the Product name field, enter Kerosene.
  4. In the Item model group field, enter or select a value.
  5. In the Item group field, enter or select a value.
  6. In the Storage dimension group field, enter or select a value.
  7. In the Tracking dimension group field, enter or select a value.
  8. In the Inventory unit field, enter gal.
  9. In the Purchase unit field, enter gal.
  10. In the Sales unit field, enter gal.
  11. In the BOM unit field, enter gal.
  12. Select OK.
  13. On the Engineer FastTab, in the Production type field, select Co-product.
  14. In the Planning formula field, enter P15000.
  15. Select Save.
  16. Close the page.
  17. Select New.
  18. In the Product number field, enter P17000.
  19. In the Product name field, enter Diesel Fuel.
  20. In the Item model group field, enter or select a value.
  21. In the Item group field, enter or select a value.
  22. In the Storage dimension group field, enter or select a value.
  23. In the Tracking dimension group field, enter or select a value.
  24. In the Inventory unit field, enter gal.
  25. In the Purchase unit field, enter gal.
  26. In the Sales unit field, enter gal.
  27. In the BOM unit field, enter gal.
  28. Select OK.
  29. On the Engineer FastTab, in the Production type field, select Co-product.
  30. In the Planning formula field, enter P15000.
  31. Select Save.
  32. Close the page.

Create the new by-products

  1. Select New.
  2. In the Product number field, enter B18000.
  3. In the Product name field, enter Waste Water.
  4. In the Item model group field, enter or select a value.
  5. In the Item group field, enter or select a value.
  6. In the Storage dimension group field, enter or select a value.
  7. In the Tracking dimension group field, enter or select a value.
  8. In the Inventory unit field, enter gal.
  9. In the Purchase unit field, enter gal.
  10. In the Sales unit field, enter gal.
  11. In the BOM unit field, enter gal.
  12. Select OK.
  13. On the Engineer FastTab, in the Production type field, select By-product.
  14. Select Save.
  15. Close the page.

Create the new raw material

  1. Select New.
  2. In the Product number field, enter M12000.
  3. In the Product name field, enter Crude Oil.
  4. In the Item model group field, enter or select a value.
  5. In the Item group field, enter or select a value.
  6. In the Storage dimension group field, enter or select a value.
  7. In the Tracking dimension group field, enter or select a value.
  8. In the Inventory unit field, enter gal.
  9. In the Purchase unit field, enter gal.
  10. In the Sales unit field, enter gal.
  11. In the BOM unit field, enter gal.
  12. Select OK.
  13. On the Engineer FastTab, in the Production type field, select None.
  14. Select Save.
  15. Close all pages.