MB-920 Practice Exam 62 — 20 Questions

Question 1

You are a supply chain consultant for a mid-sized manufacturing company that uses Dynamics 365 Supply Chain Management. The company produces electronic components and has two warehouses: one for raw materials (Warehouse A) and one for finished goods (Warehouse B). They have been experiencing frequent delays in production because raw materials are not available when needed, even though the materials are in stock at Warehouse A. The production scheduler reports that the system does not automatically reserve materials for production orders. Additionally, the warehouse manager wants to implement a policy where high-value raw materials are stored in a secure, locked area within Warehouse A, and only authorized workers can pick them. You need to configure the system to: (1) automatically reserve raw materials for production orders when they are firm planned; (2) restrict picking of high-value materials to specific workers. What should you do?

Accepted Answer

Configure production reservation in the production control parameters to reserve materials automatically when production orders are firm planned. Create a new warehouse location for high-value items, and set up a mobile device menu item with a worker filter to restrict picking to authorized workers.. To automatically reserve materials, configure production reservation (option C). To restrict picking, set up location directives with a specific warehouse location for high-value items and create a mobile device menu item that requires a worker filter. Option C is correct. Option A uses location profiles which do not restrict workers. Option B uses inventory status which blocks entire stock but not per worker. Option D uses batch attributes which are for batch-controlled items.

Answer

Set up location profiles to mark the secure area as 'Restricted' and configure location directives to use these locations for high-value items. Enable production reservation in the production order defaults.

Answer

Assign batch attributes to high-value materials and use batch reservation. Restrict picking by setting up a separate warehouse for high-value items.

Answer

Use inventory status to block high-value items and create a quality order to release them. Enable automatic reservation in master planning parameters.

Question 2

You are the supply chain manager for a global pharmaceutical company that manufactures and distributes temperature-sensitive vaccines. The company uses Dynamics 365 Supply Chain Management with warehouse management and production control. The vaccines must be stored at 2-8°C throughout the supply chain. You need to design a process that ensures: (1) inbound vaccine shipments are inspected and temperature-logged before acceptance, (2) vaccines are immediately moved to a cold storage location upon receipt, (3) picking for outbound orders always prioritizes vaccines with the nearest expiration date (FEFO), and (4) any temperature excursion during storage automatically triggers a quarantine and quality order. Which set of configurations should you implement?

Accepted Answer

Configure a quality association for inbound inspections, location directives for cold storage, set reservation hierarchy to FEFO, and use temperature monitoring with threshold alerts linked to quality orders.. Option B is correct because quality associations can trigger inspection upon receipt, location directives with 'License plate required' and 'Temperature zone' can enforce cold storage, FEFO is enforced by reservation hierarchy, and temperature monitoring with threshold alerts can trigger quarantine. Option A is missing inspection and quarantine. Option C uses FIFO, not FEFO. Option D does not include temperature monitoring.

Answer

Set up inbound inspection via a quality order, use a work template for put-away, enable FEFO reservation, and rely on periodic manual temperature checks.

Answer

Set up a mobile device menu for receipt, use a wave template for put-away, enable FIFO reservation, and use quality orders manually.

Answer

Use a quality order for inbound, create a location directive for cold storage, set reservation hierarchy to FIFO, and enable batch attributes.

Question 3

A manufacturing company uses Dynamics 365 Supply Chain Management with discrete manufacturing. They produce furniture in a make-to-stock environment. The production scheduler creates production orders for batches of 100 chairs. Raw materials are issued from the warehouse to the production floor based on a bill of materials (BOM). The company wants to streamline the process by automatically reserving raw materials when a production order is released, and also to capture the actual raw material consumption during production, rather than posting the full BOM consumption upon order start. Which manufacturing execution feature should you enable?

Accepted Answer

Material consumption registration. Option C is correct because 'Material consumption registration' in manufacturing execution allows operators to register actual material usage during production, and automatic reservation can be configured. Option A is wrong because 'Auto-report as finished' automates the reporting of finished goods, not material consumption. Option B is wrong because 'Operation scheduling' is for scheduling operations, not material tracking. Option D is wrong because 'Kanban' is for lean manufacturing, not discrete make-to-stock.

Answer

Operation scheduling

Answer

Auto-report as finished

Answer

Kanban

Question 4

You are a Dynamics 365 Supply Chain Management functional consultant for a food and beverage company. The company receives raw materials from multiple suppliers and needs to enforce quality inspections on all inbound shipments of dairy products. If a dairy shipment fails inspection, the entire lot must be quarantined and cannot be used in production. Additionally, the company wants to automatically generate purchase orders when the inventory level of a key ingredient falls below a reorder point. The inventory planner will review and approve the suggested orders before they are sent to suppliers. You need to configure the system to: (1) enforce quality inspections on inbound dairy products; (2) automatically quarantine failed lots; (3) generate purchase order suggestions based on reorder points. What should you do?

Accepted Answer

Use quality orders with a sampling plan for dairy products and set inventory status to 'Quarantine' on failure. Set up item coverage with a reorder point and run master planning to generate planned purchase orders.. To enforce quality inspections, create a quality order with a sampling plan for dairy products (option D). Quarantine can be enforced by setting the inventory status to 'Quarantine' on failure. For purchase order suggestions, set up item coverage with a reorder point and use master planning to generate planned purchase orders. Option D is correct. Option A uses cycle counting for inspections, not quality orders. Option B uses vendor evaluation, not quarantine. Option C uses safety stock journal, not automatic generation.

Answer

Create a quality order for each inbound dairy shipment and configure a workflow to approve or reject. Use safety stock journal to create purchase orders when stock is low.

Answer

Set up vendor evaluation to inspect dairy suppliers and use inventory blocking to quarantine. Configure master planning with safety stock for automatic purchase orders.

Answer

Create a cycle counting plan for dairy products and set up a quarantine zone in the warehouse. Configure item coverage with a min-max system for automatic purchase orders.

Question 5

You are a solutions architect for a furniture manufacturer that uses Dynamics 365 Supply Chain Management. The company produces custom furniture and uses make-to-order production. They have the following requirements: (1) When a sales order is created, the system must automatically create a production order for the configured product. (2) The production order must use a BOM and route that are specific to the order configuration. (3) The production order must be scheduled based on material availability and capacity. (4) The company wants to use Copilot to assist in creating the production schedule. Which set of configurations should you implement?

Accepted Answer

Create a production order from the sales order, use product configuration models to generate BOM and route, schedule operations using finite capacity, and enable Copilot for scheduling.. Option D is correct because a production order is created from a sales order for make-to-order, product configuration models allow specific BOMs and routes, scheduling considers material and capacity, and Copilot can assist. Option A uses a sales order without production. Option B uses a purchase order. Option C uses a blanket order.

Answer

Create a blanket sales order and use a kanban rule to trigger production.

Answer

Create a sales order and directly pick inventory; no production order needed.

Answer

Create a purchase order for the configured product and use a transfer order.

Question 6

A company uses Dynamics 365 Supply Chain Management with Warehouse Management (WMS). The warehouse manager wants to optimize the picking process by grouping multiple orders into a single picking wave. The company uses cluster picking and wants workers to pick items for multiple orders at once. You need to configure the system to support cluster picking. You have the following options: A. Create a wave template that uses cluster picking and assign it to the appropriate warehouse. Configure a mobile device menu item for cluster picking. B. Use the work creation process to combine orders into a single work order. C. Configure the location directives to direct all picks to a single location. D. Use the load planning workbench to create loads and then pick by load. Which option should you choose?

Accepted Answer

Create a wave template that uses cluster picking and assign it to the appropriate warehouse. Configure a mobile device menu item for cluster picking.. Option A is correct because cluster picking is enabled via wave templates and mobile device menu items specifically for cluster picking. Option B is incorrect because work creation does not combine orders into a single work order for cluster picking. Option C is incorrect because location directives are for directing picks, not for grouping orders. Option D is incorrect because load planning is for shipments, not for cluster picking within a wave.

Answer

Configure the location directives to direct all picks to a single location.

Answer

Use the load planning workbench to create loads and then pick by load.

Answer

Use the work creation process to combine orders into a single work order.

Question 7

Contoso Ltd. is a global manufacturer of electronic components. They use Dynamics 365 Supply Chain Management with advanced warehouse management (WMS). The warehouse manager reports that during peak seasons, the picking process is slow because workers often have to travel long distances to pick items for multiple orders. Additionally, they want to improve the accuracy of shipments by ensuring that items are picked in the correct sequence. They have implemented barcode scanning on mobile devices. The IT team has configured location directives and work templates. However, the manager believes that the current setup does not optimize travel time or enforce a specific picking order. The company needs a solution that groups orders with similar items into a single picking trip and prioritizes picks based on the physical layout of the warehouse. They have considered using wave management but are unsure how to configure it. What should the administrator do?

Accepted Answer

Configure cluster picking in the wave template to group orders with similar items and create a single pick list for the cluster.. Cluster picking groups multiple orders into one picking trip, reducing travel. The 'FEFO' (first expiry first out) picking strategy is not about grouping. Cross-docking is for direct shipment. Zone sequencing defines work order but does not group orders. Cluster picking with wave management is the correct approach to batch orders and minimize travel.

Answer

Define zone sequencing in the work template to enforce a specific order of zones.

Answer

Set up cross-docking to move incoming items directly to outbound docks.

Answer

Enable 'FEFO' (first expiry, first out) picking strategy in the location directive to prioritize older stock.

Question 8

Northwind Traders uses Dynamics 365 Supply Chain Management for their distribution operations. They have a requirement to manage inventory across multiple warehouses and legal entities. They want to transfer finished goods from their manufacturing subsidiary (legal entity A) to their distribution subsidiary (legal entity B) at a transfer price that includes a markup. The transfer should be recorded as a sale in entity A and a purchase in entity B. They plan to use intercompany functionality. The finance team has set up intercompany parameters, but the transactions are not creating the expected intercompany orders. The administrator has verified that both entities are configured correctly in the system. However, the intercompany orders are not generated automatically when a purchase order is created in entity B. What should the administrator check next?

Accepted Answer

Ensure that the intercompany relationship is defined for the specific item in the item mapping setup.. Intercompany orders require that the intercompany relationship is defined on the item level, not just the legal entity level. The item must be mapped between entities to trigger automatic order creation. The vendor setup on the purchase order is correct but without item mapping, no interchain. Intercompany parameters are global, but item relations are per item.

Answer

Confirm that the inventory unit of measure is the same in both entities.

Answer

Check that the intercompany parameters in entity B are set to 'Create intercompany purchase orders automatically'.

Answer

Verify that the vendor associated with entity A is set up as an intercompany vendor in entity B.

Question 9

You are the supply chain consultant for a global electronics manufacturer that uses Dynamics 365 Supply Chain Management. The company procures components from multiple vendors and assembles finished goods in three factories: Berlin, Shanghai, and Monterrey. The current process requires planners to manually review demand and supply for each site and create purchase orders. The company wants to automate the generation of purchase requisitions based on forecasted demand and current inventory levels. Additionally, they need to ensure that the system respects vendor lead times and minimum order quantities. You propose using master planning to generate planned purchase orders. However, the procurement manager is concerned that planned orders might be created too frequently for low-demand items, causing an excessive number of small purchases. What should you configure to consolidate planned purchase orders for the same vendor within a defined time window?

Accepted Answer

Configure purchase order consolidation in master planning parameters.. Option C is correct because the 'Purchase order consolidation' feature in master planning allows grouping planned orders by vendor into a single purchase order, reducing the number of small orders. Option A is wrong because the 'Coverage time fence' determines how far ahead the system plans, not consolidation. Option B is wrong because 'Action messages' suggest changes to existing orders, not consolidation. Option D is wrong because 'Safety stock' ensures inventory availability but does not consolidate orders.

Answer

Increase safety stock levels for low-demand items.

Answer

Enable action messages in master planning.

Answer

Set a coverage time fence for each item.

Question 10

You are a Dynamics 365 consultant for a chemical company that uses process manufacturing. They produce adhesives in batches, and the quality of the final product depends on precise adherence to the formula. The company wants to implement a system that prevents operators from starting a production batch unless the raw materials meet quality specifications (e.g., viscosity and purity). Additionally, the system should record the actual test results for each material used in the batch. Which feature combination should you recommend?

Accepted Answer

Quality management with quality orders linked to production. Option B is correct because quality management with quality orders can be integrated with production control to enforce material testing before production. Option A is wrong because batch disposition codes control inventory availability, not production start. Option C is wrong because inventory blocking is a manual process, not automated. Option D is wrong because material consumption registration tracks usage, not quality compliance.

Answer

Batch disposition codes and reservation hierarchy

Answer

Inventory blocking and quarantine management

Answer

Material consumption registration and production journals

Question 11

A company uses Dynamics 365 Supply Chain Management. The procurement manager wants to automate the creation of purchase orders from purchase requisitions that are approved by an approval workflow. The company uses procurement categories to classify purchases. You need to configure the system so that when a purchase requisition is approved, a purchase order is automatically created. You have the following options: A. Set up a purchase requisition workflow that includes the 'Create purchase order' action as part of the workflow. B. Manually create purchase orders after the requisition is approved. C. Use the Procurement and Sourcing module to set up a purchase agreement that automatically generates purchase orders. D. Use the Master Planning module to generate planned purchase orders from requisitions. Which option should you choose?

Accepted Answer

Set up a purchase requisition workflow that includes the 'Create purchase order' action as part of the workflow.. Option A is correct because a purchase requisition workflow can include an action to automatically create a purchase order upon approval. Option B is incorrect because it is manual. Option C is incorrect because purchase agreements are for pricing, not for automatic creation from requisitions. Option D is incorrect because Master Planning generates planned orders, not purchase orders directly from requisitions.

Answer

Use the Procurement and Sourcing module to set up a purchase agreement that automatically generates purchase orders.

Answer

Manually create purchase orders after the requisition is approved.

Answer

Use the Master Planning module to generate planned purchase orders from requisitions.

Question 12

A distribution company uses Dynamics 365 Supply Chain Management to manage its supply chain. Recently, the company has been facing issues with late deliveries to customers. The root cause analysis shows that the planning department is not accurately accounting for lead times from suppliers. The company wants to improve the accuracy of purchase order delivery dates. You need to configure the system to automatically calculate purchase order delivery dates based on vendor lead times and calendar exceptions. The company uses the Master Planning module for supply planning. You have the following options: A. Set up vendor lead times in the Vendor master and configure the purchase lead time field in the Product master. Then run Master Planning to generate planned purchase orders with correct delivery dates. B. Manually adjust delivery dates on each purchase order based on phone calls with vendors. C. Use the Procurement and Sourcing module to create blanket purchase agreements that override lead times. D. Configure the Warehouse Management module to use the shipment consolidation functionality to adjust delivery dates. Which option should you choose?

Accepted Answer

Set up vendor lead times in the Vendor master and configure the purchase lead time field in the Product master. Then run Master Planning to generate planned purchase orders with correct delivery dates.. Option A is correct because vendor lead times and product lead times are used by Master Planning to calculate delivery dates automatically. Option B is incorrect because manual adjustments are error-prone and not scalable. Option C is incorrect because blanket purchase agreements are for pricing and terms, not for lead time calculation. Option D is incorrect because shipment consolidation is for outbound shipments, not for purchase order lead times.

Answer

Configure the Warehouse Management module to use the shipment consolidation functionality to adjust delivery dates.

Answer

Manually adjust delivery dates on each purchase order based on phone calls with vendors.

Answer

Use the Procurement and Sourcing module to create blanket purchase agreements that override lead times.

Question 13

You are a system administrator for a food and beverage company using Dynamics 365 Supply Chain Management. The company produces perishable goods with expiration dates. They currently track inventory by batch, but they need to enforce a first-expiry-first-out (FEFO) picking strategy in their warehouse. When a sales order is picked, the system should automatically suggest the batch with the earliest expiration date. Additionally, if a batch has expired, the system should prevent it from being picked and should quarantine it. What configuration steps should you perform to meet these requirements?

Accepted Answer

Use batch disposition codes and set the reservation hierarchy to batch-above-location.. Option D is correct because batch disposition codes allow you to define rules for inventory availability (e.g., block expired batches), and reservation hierarchy enables FEFO by setting the batch to be above location. Option A is wrong because quality orders are for inspections, not for FEFO picking. Option B is wrong because product flavors are not related to expiration date management. Option C is wrong while option D is correct because the correct approach is to use batch disposition codes to block expired inventory and reservation hierarchy to enforce FEFO.

Answer

Set up product flavors to categorize batches by expiration date.

Answer

Create quality orders to inspect batches before picking.

Answer

Use batch disposition codes and set the reservation hierarchy to location-above-batch.

Question 14

A food processing company uses Dynamics 365 Supply Chain Management. They need to track raw materials by lot number for quality control and recall management. The company purchases ingredients from multiple vendors, and each lot must be traceable from the vendor to the final product. The company also needs to ensure that when a product is produced, the system automatically consumes the raw materials based on the batch order. You need to configure the system to support lot tracking and automatic consumption. You have the following options: A. Enable lot tracking in the Product master for each raw material. Use the Batch order process with automatic consumption set to 'At start' or 'At completion'. B. Use the Warehouse Management module to configure location directives for lot-controlled items. C. Enable serial tracking for all raw materials and manually enter serial numbers during production. D. Use the Inventory Management module to create inventory adjustments for lot consumption. Which option should you choose?

Accepted Answer

Enable lot tracking in the Product master for each raw material. Use the Batch order process with automatic consumption set to 'At start' or 'At completion'.. Option A is correct because enabling lot tracking and using batch orders with automatic consumption ensures traceability and automated consumption. Option B is incorrect because location directives are for warehouse operations, not for lot traceability and consumption. Option C is incorrect because serial tracking is for individual items, not lots, and manual entry is inefficient. Option D is incorrect because inventory adjustments are not for production consumption.

Answer

Use the Warehouse Management module to configure location directives for lot-controlled items.

Answer

Enable serial tracking for all raw materials and manually enter serial numbers during production.

Answer

Use the Inventory Management module to create inventory adjustments for lot consumption.

Question 15

You are a supply chain analyst for a company that uses Dynamics 365 Supply Chain Management. The company procures steel coils from multiple suppliers. The procurement manager wants to evaluate supplier performance based on on-time delivery and price variance. They need a dashboard that shows a scorecard for each supplier, summarizing the percentage of deliveries received on or before the promised date, and the average price deviation from the purchase order price. Which tool should you use to create this dashboard without custom development?

Accepted Answer

Power BI. Option D is correct because Power BI can connect to Dynamics 365 data and create visual dashboards for supplier scorecards. Option A is wrong because Procurement and sourcing module provides purchase order management but not a configurable scorecard dashboard. Option B is wrong because Vendor collaboration is for communication with vendors, not analytics. Option C is wrong because Excel is not a dashboard tool for real-time scorecards without manual effort.

Answer

Procurement and sourcing module

Answer

Vendor collaboration

Answer

Excel integration

Question 16

A retail company uses Dynamics 365 Supply Chain Management to manage its supply chain. The company has many stores that replenish inventory from a central distribution center. The company wants to use demand-driven replenishment to automatically generate purchase orders for the distribution center based on sales forecasts and current inventory levels. The company uses the Master Planning module. You need to configure the system to generate planned purchase orders for the distribution center. You have the following options: A. Set up a coverage group for the distribution center with the coverage code 'Min/Max' and run Master Planning. B. Set up intercompany orders between the stores and the distribution center. C. Use the Demand forecasting module to generate forecasts and manually create purchase orders. D. Configure the Product master with a reorder point and use inventory journals to create purchase orders. Which option should you choose?

Accepted Answer

Set up a coverage group for the distribution center with the coverage code 'Min/Max' and run Master Planning.. Option A is correct because Min/Max coverage code in a coverage group allows Master Planning to generate planned purchase orders based on minimum and maximum inventory levels. Option B is incorrect because intercompany orders are for transactions between legal entities, not for replenishment planning. Option C is incorrect because it involves manual creation. Option D is incorrect because reorder point requires manual journals.

Answer

Configure the Product master with a reorder point and use inventory journals to create purchase orders.

Answer

Use the Demand forecasting module to generate forecasts and manually create purchase orders.

Answer

Set up intercompany orders between the stores and the distribution center.

Question 17

You are a functional consultant for a pharmaceutical company implementing Dynamics 365 Supply Chain Management. The company must comply with strict regulatory requirements for traceability and lot control. They produce serialized products where each batch must be tracked from raw material receipt to final product shipment. The production process involves mixing raw materials in a specific sequence and quantity, and the company currently uses paper-based batch records. They want to digitize the process to enforce that operators cannot proceed to the next step unless the previous step is completed and quantities are within specification. Additionally, they need to capture actual consumption of raw materials against the batch order. Which combination of features should you recommend?

Accepted Answer

Use production control with manufacturing execution and material consumption registration.. Option A is correct because production control with manufacturing execution and material consumption registration provides step-by-step guidance, enforces process sequence, and captures actual material consumption. Option B is wrong because quality management with quality orders is for inspections, not for guiding production steps. Option C is wrong because warehouse management is for storage and movement, not for production process enforcement. Option D is wrong because engineering change management is for managing product versions, not for production execution.

Answer

Use quality management with quality orders for each production step.

Answer

Use warehouse management with mobile device menus for production put-away and picking.

Answer

Use engineering change management to control batch record versions.

Question 18

A company uses Dynamics 365 Supply Chain Management to manage its supply chain. They have multiple vendors for the same raw material. The procurement team wants to receive automatic suggestions on which vendor to select when creating purchase orders, based on the lowest price and best delivery history. Currently, the buyers research manually. Which feature should they use?

Accepted Answer

Vendor scorecards and rating. Option C is correct because vendor scorecards and rating in procurement and sourcing evaluate vendors based on criteria like price and delivery, and can be used to suggest vendors. Option A is wrong because purchase agreements are contracts, not recommendation tools. Option B is wrong because vendor collaboration is for communication, not evaluation. Option D is wrong because request for quotation is for soliciting quotes, not for automatic vendor suggestion.

Answer

Request for quotation

Answer

Purchase agreements

Answer

Vendor collaboration

Question 19

A company uses Dynamics 365 Supply Chain Management to manage inventory. They want to use the Inventory turnover ratio to analyze how quickly inventory is sold. The finance team needs to see this ratio on a dashboard. You need to configure the system to calculate and display the inventory turnover ratio. You have the following options: A. Use the Inventory value report and calculate the ratio manually in Excel. B. Use the Power BI content pack for Dynamics 365 Supply Chain Management, which includes inventory turnover measures. C. Use the Inventory aging report to estimate turnover. D. Use the Warehouse Management module to track movements and calculate turnover. Which option should you choose?

Accepted Answer

Use the Power BI content pack for Dynamics 365 Supply Chain Management, which includes inventory turnover measures.. Option B is correct because the Power BI content pack includes pre-built measures for inventory turnover. Option A is incorrect because it requires manual calculation. Option C is incorrect because aging report is for aging, not turnover. Option D is incorrect because WMS is for warehouse operations, not financial analytics.

Answer

Use the Inventory value report and calculate the ratio manually in Excel.

Answer

Use the Warehouse Management module to track movements and calculate turnover.

Answer

Use the Inventory aging report to estimate turnover.

Question 20

You are the supply chain manager at a manufacturing company using Dynamics 365 Supply Chain Management. The company operates three warehouses: WH01 (finished goods), WH02 (raw materials), and WH03 (work-in-process). You need to configure inventory visibility for real-time demand planning. The company requires that inventory levels from all three warehouses be viewable in a single dashboard, with the ability to allocate stock to sales orders before physical pick. Additionally, you must ensure that the system can handle soft reservations across warehouses without impacting the physical inventory counts. You have the following options: A. Configure the Inventory Visibility Service add-in and set up soft reservations using the Allocation API. B. Use the standard Inventory On-hand report and manually reserve stock per warehouse. C. Implement Warehouse Management System (WMS) and use the wave execution to allocate stock. D. Set up Product Information Management with transfer orders to move stock between warehouses. Which option should you choose?

Accepted Answer

Configure the Inventory Visibility Service add-in and set up soft reservations using the Allocation API.. Option A is correct because the Inventory Visibility Service add-in provides real-time multi-warehouse visibility and supports soft reservations via the Allocation API, which does not affect physical inventory. Option B is incorrect because manual reservation per warehouse is not real-time and doesn't offer a unified dashboard. Option C is incorrect because WMS wave execution is for physical warehouse operations, not for soft reservations across warehouses. Option D is incorrect because transfer orders are for physical movement, not for soft reservation visibility.

Answer

Implement Warehouse Management System (WMS) and use the wave execution to allocate stock.

Answer

Use the standard Inventory On-hand report and manually reserve stock per warehouse.

Answer

Set up Product Information Management with transfer orders to move stock between warehouses.