ManSmell, Inc. manufacturers boutique men\'s toiletries. Their best customer, Ma

Question

ManSmell, Inc. manufacturers boutique men's toiletries. Their best customer, ManCave Unlimited wants to sell a variation on ManSmell's best selling product HeManSmell that will have more spice than the original and will be branded for ManCave Unlimited as ManCave Mojo. It will be sold in a 6 oz package and a 12 oz package. It will use raw materials ManSmell has previously used in other products. The two companies have agreed on formulation, pricing and packaging. Describe the steps ManSmell needs to do in their SAP system to have the master data ready to manufacture and sell ManCave Mojo.

Explanation / Answer

Below are the steps ManSmell needs to do in their SAP system to have the master data ready to manufacture and sell ManCave Mojo -

1. Create new component items as per the new requirements of Mancave.

2. Creating new product items by copying from the existing items and adding the newly created component items in additional to create the Bill of Materials.

3. Using the new BOMs and routings to create a manufacturing ready process with operations and resources.

4. Costing the new component items and doing a cost rollup to reflect the final BOM item cost.

5. Pricing the product as per the costs and profit margin and as per the customer inputs.

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