The formula line type of an item determines how the item is handled during master planning and

batch order production. The Active line type indicates that the item is an active ingredient that has a

variable quantity and a fixed potency. The Compensating line type indicates that the item is used to

adjust the total quantity of the formula to a fixed amount1.

In this scenario, ProductA is the primary ingredient and ProductB is used to adjust the concentration

of active ingredients in the lotion. Therefore, ProductA should have the Active line type and ProductB

should have the Compensating line type. ProductC represents the remainder, so it can have any line

type except Active or Compensating1.

Setting the formula line type of ProductB to Active or ProductA to Compensating would not ensure

that the lotion final product has a consistent concentration of anti-inflammatory agents. Setting the

formula line type of ProductC to None would have no effect on the concentration of active

ingredients in the lotion1.

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To describe the concepts for the requirements, you should use the following:

Redesign the manufacturing facility for the new facility capabilities: You should use

the Discrete concept. Discrete manufacturing is a type of manufacturing that produces distinct items

that can be easily counted, touched, or seen1. Discrete manufacturing is suitable for producing

custom bicycle parts in an engineer-to-order model, because it allows you to create unique products

based on customer specifications and engineering drawings2. Discrete manufacturing also supports

complex production processes that involve multiple steps, resources, and materials2.

Configure for the engineer-to-order items: You should use the Supply policies concept. Supply

policies are rules that determine how supply is generated for a product based on its

demand3. Supply policies can be configured at the product level, the product master level, or the

coverage group level3. For engineer-to-order items, you can configure a supply policy that omits

them from any master planning process. For example, you can set the coverage code to None, which

means that no planned orders are generated for the product. You can also set the replenishment

system to None, which means that no replenishment orders are generated for the product.

1: What is discrete manufacturing? 2: Discrete manufacturing overview 3: Supply policies : [Coverage

codes] : [Replenishment systems]

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The solution meets the goal. Here is the explanation:

To create and configure the product and pricing for the new speaker, you should use the following

steps1:

Create a product master for the speaker and release it to the relevant legal entities. On the Product

dimension groups page, select Constraint-based configuration as the configuration technology, and

select the configuration dimension. On the Released product details page, select Configurable on the

Engineer tab.

Create a constraint-based product configuration model for the speaker and add it as a version to the

product master. On the Constraint-based product configuration model details page, add attributes,

constraints, subcomponents, BOM lines, and route operations to define the features and structure of

the speaker. For example, you can add an attribute for carbon fiber options and specify Standard and

Premium as the values. You can also add constraints to limit the combinations of attribute values that

are allowed.

Create a price model for the speaker and link it to the product configuration model. On the Price

models page, add price components and specify how they are calculated based on attributes,

subcomponents, BOM lines, or route operations. For example, you can add a price component for

carbon fiber options and specify different prices for Standard and Premium values. You can also add

price components for other attributes that affect the price of the speaker.

Configure products on sales orders, sales quotations, purchase orders, or production orders by using

the Product configuration models page. You can select values for attributes and see how they affect

the price of the speaker. You can also view the price details and see how each price component

contributes to the total price.

1: Product configuration overview : Create constraint-based configuration : Price models

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