MB-920 Practice Test 25 — 15 Questions

Question 1

You are configuring master planning for item A0001 in Dynamics 365 Supply Chain Management. The exhibit shows a coverage group configuration. Based on the exhibit, what is the expected behavior when the on-hand quantity drops to 400 units?

Accepted Answer

A planned order is generated to replenish up to 2000 units.. Option B is correct because with MinMax reordering policy, when on-hand drops below the minimum quantity (500), a planned order is generated to bring inventory up to the maximum (2000). Option A is wrong because safety stock is 100, but the trigger is the minimum quantity. Option C is wrong because the period is 30 days but does not affect this trigger. Option D is wrong because the coverage group FIFO affects issue priority, not the reorder trigger.

Answer

No action is taken because safety stock is 100 and on-hand is above that.

Answer

The system waits for the next period (30 days) before generating a planned order.

Answer

A planned order is generated to replenish only 100 units to meet safety stock.

Question 2

A company uses Dynamics 365 Supply Chain Management. They are implementing demand-driven material requirements planning (DDMRP). Which TWO elements are part of the DDMRP methodology?

Accepted Answer

Decoupling points. Options A and C are correct because DDMRP uses decoupling points and buffer levels to manage inventory. Option B is wrong because safety stock is a traditional MRP concept. Option D is wrong because reorder point is also traditional. Option E is wrong because lead time is a parameter, not a DDMRP element.

Answer

Lead time offsetting

Answer

Safety stock levels

Answer

Reorder point calculation

Question 3

A distribution company uses Dynamics 365 Supply Chain Management. They notice that transportation costs are high across multiple carriers. Which module should they configure to optimize carrier selection and route planning?

Accepted Answer

Transportation Management. Option C is correct because Transportation Management (TMS) provides tools for carrier rate shopping, route planning, and freight optimization. Option A is wrong because Warehouse Management (WMS) focuses on inbound/outbound operations, not transportation. Option B is wrong because Master Planning handles supply/demand balancing, not carrier selection. Option D is wrong because Asset Management is for equipment maintenance.

Answer

Master Planning

Answer

Warehouse Management

Answer

Asset Management

Question 4

Which TWO modules are part of Dynamics 365 Supply Chain Management for warehouse operations?

Accepted Answer

Inventory Management. Options B and D are correct because Warehouse Management and Inventory Management are core to warehouse operations. Option A is wrong because Transportation Management is for logistics. Option C is wrong because Asset Management is for maintenance. Option E is wrong because Project Management is for project-based work.

Answer

Asset Management

Answer

Project Management

Answer

Transportation Management

Question 5

A company uses Dynamics 365 Supply Chain Management with advanced warehouse management. They experience slow performance when running the 'Release to warehouse' batch job for sales orders. The warehouse manager suspects that the location directives are inefficient. Which approach should they take to improve performance?

Accepted Answer

Analyze and optimize location directive queries and indexes. Option D is correct because analyzing location directive queries and indexes can identify bottlenecks and improve performance. Option A is wrong because increasing batch servers adds capacity but doesn't address inefficient directives. Option B is wrong because disabling location directives would break putaway. Option C is wrong because reducing wave steps may affect functionality.

Answer

Disable location directives

Answer

Increase the number of batch servers

Answer

Reduce the number of wave steps

Question 6

A distribution company needs to automate the generation of purchase orders when inventory levels fall below a predefined threshold. Which feature in Dynamics 365 Supply Chain Management should be configured?

Accepted Answer

Replenishment rules. Option B is correct because replenishment rules automatically generate purchase orders based on inventory levels. Option A is wrong because vendor collaboration is for communication, not automation. Option C is wrong because inventory visibility is a monitoring tool. Option D is wrong because batch balancing is for production.

Answer

Inventory visibility

Answer

Vendor collaboration

Answer

Batch balancing

Question 7

Which TWO planning methods are available in Dynamics 365 Supply Chain Management for master planning?

Accepted Answer

Net change. Options A and B are correct. Regenerative and net change are the two master planning methods. Option C is wrong because coverage planning is a type, not a method. Option D is wrong because intercompany planning is a scenario. Option E is wrong because demand planning is a separate module.

Answer

Coverage planning

Answer

Intercompany planning

Answer

Demand planning

Question 8

A company uses Dynamics 365 Supply Chain Management and wants to implement a policy where a specific supplier must be used for a particular item. Which configuration enforces this?

Accepted Answer

Add the supplier to the approved supplier list for the item.. Option C is correct because an approved supplier list (ASL) restricts which suppliers can be used for an item; if a supplier is not on the list, procurement cannot proceed. Option A is wrong because a purchase agreement is a contract but does not enforce supplier exclusivity. Option B is wrong because a vendor account is just a record. Option D is wrong because a procurement category is a grouping, not a restriction.

Answer

Configure a procurement category and assign the supplier.

Answer

Create a purchase agreement with that supplier.

Answer

Set the supplier as the default vendor on the item's vendor setup.

Question 9

You are configuring a reservation hierarchy for a warehouse in Dynamics 365 Supply Chain Management. Based on the exhibit, what is the primary criterion for picking inventory?

Accepted Answer

Location. Option A is correct because the reservation hierarchy lists location with priority 1, meaning it is the primary dimension for picking. Option B is wrong because lot number is priority 2. Option C is wrong because expiration date is priority 3. Option D is wrong because FIFO is the name of the hierarchy, not the primary dimension.

Answer

Expiration date

Answer

Lot number

Answer

FIFO

Question 10

Which TWO of the following are capabilities of Dynamics 365 Supply Chain Management?

Accepted Answer

Transportation management. Options A and D are correct: Demand forecasting and Transportation management are core capabilities. Option B is incorrect because Customer relationship management is handled by Dynamics 365 Sales. Option C is incorrect because Human resources management is in Dynamics 365 Human Resources. Option E is incorrect because Project accounting is in Dynamics 365 Project Operations.

Answer

Customer relationship management

Answer

Project accounting

Answer

Human resources management

Question 11

A warehouse uses Warehouse Management. The exhibit shows an inventory record. Which process would update the location for this license plate?

Accepted Answer

Warehouse Transfer. Option D is correct because a Warehouse Transfer can move inventory from one location to another, updating the location. Option A is wrong because Purchase Order Receipt creates inventory, doesn't move it. Option B is wrong because Sales Order Picking changes quantity, not necessarily location. Option C is wrong because Cycle Counting corrects quantity, not location.

Answer

Sales Order Picking

Answer

Cycle Counting

Answer

Purchase Order Receipt

Question 12

A company uses Dynamics 365 Supply Chain Management and wants to automate the generation of purchase orders from sales orders through direct delivery. Which setup is required?

Accepted Answer

Set up the item with a default order type of 'Direct delivery'. Option A is correct because direct delivery requires setting up a 'Direct delivery' default order type on the item or customer to automatically create purchase orders from sales orders. Option B is wrong because intercompany order setup is for transactions between legal entities. Option C is wrong because purchase agreements are for long-term contracts. Option D is wrong because demand forecasting is for prediction, not automation.

Answer

Set up demand forecasting

Answer

Set up an intercompany order

Answer

Set up a purchase agreement

Question 13

A company uses Dynamics 365 Supply Chain Management with demand-driven material requirements planning (DDMRP). They notice that the system is not generating replenishment orders for certain items even though the stock is below the reorder point. What could be the issue?

Accepted Answer

The item's planning frequency is not set in the buffer profile.. Option B is correct because DDMRP uses decoupled lead time, buffer profiles, and planning frequency. If the planning frequency is not set, orders may not be generated. Option A is wrong because coverage groups are still used. Option C is wrong because MRP is different from DDMRP. Option D is wrong because dynamic planning is not a requirement.

Answer

Master planning is not set to regenerative mode.

Answer

The item is excluded from dynamic planning.

Answer

The item's coverage group is not assigned to a master plan.

Question 14

A manufacturing company uses Dynamics 365 Supply Chain Management. They notice that the forecasted demand for a critical raw material is consistently lower than actual consumption, causing stockouts. What is the most likely cause?

Accepted Answer

The forecast profile does not include enough historical data or uses an inappropriate model.. Option C is correct because forecast profiles define how historical data is used to generate forecasts; if the profile uses too short a historical period or inappropriate model, forecasts will be inaccurate. Option A is wrong because coverage groups affect replenishment, not forecast accuracy. Option B is wrong because inventory statuses affect availability, not forecast generation. Option D is wrong because item models determine costing, not forecasting.

Answer

The coverage group for the item is set to 'Period' instead of 'Min/Max'.

Answer

The item's inventory status is set to 'Blocked' for some warehouses.

Answer

The item's model group is set to 'FIFO' instead of 'Weighted average'.

Question 15

Which THREE of the following are capabilities of the Warehouse management module in Dynamics 365 Supply Chain Management?

Accepted Answer

License plate tracking. Options B, C, and D are correct. Warehouse management includes wave processing, license plate tracking, and inbound and outbound operation management. Option A is wrong because route planning is part of Transportation management. Option E is wrong because demand forecasting is part of Master planning or separate features.

Answer

Route planning for inbound and outbound shipments

Answer

Demand forecasting using machine learning

MB-920 Practice Test 25 — 15 Questions

Exhibit

MB-920 Practice Test 25 — 15 Questions

Exhibit