MB-920 Describe Dynamics 365 Supply Chain Management — 30 Questions

Question 1

A distribution company uses Dynamics 365 Supply Chain Management to manage its warehouse operations. The warehouse manager reports that during peak hours, order picking is slow because pickers frequently travel long distances to retrieve items. The warehouse layout is fixed. Which feature should the company use to optimize picking routes without changing the physical layout?

Choose an answer to begin — your selection is scored in the full session.

Accepted Answer

Configure wave processing with location-based wave filters.. Wave processing with location-based wave filters allows the system to group work into waves based on criteria such as location, enabling the creation of efficient picking routes that minimize travel distance. This feature optimizes the sequence of picks within a wave without requiring any physical changes to the warehouse layout, directly addressing the manager's need to reduce travel time during peak hours.

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Enable replenishment to ensure pick locations are fully stocked.

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Use location directives to direct putaway to random locations.

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Implement cluster picking to group orders by customer.

Question 2

A company uses Dynamics 365 Supply Chain Management to manage production orders. A production planner needs to schedule a rush order for a high-priority customer. The planner wants to see the impact on existing orders before committing. Which feature should the planner use?

Accepted Answer

Gantt chart scheduling on the production floor control board.. The Gantt chart on the production floor control board provides a visual, interactive timeline that allows the planner to simulate the insertion of a rush order and immediately see its effect on existing production orders, including potential delays or resource conflicts. This feature supports 'what-if' analysis before committing the order, which directly matches the requirement to assess impact on existing orders.

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Finite scheduling on the resource group.

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Production order details form.

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Capacity planning workspace.

Question 3

A manufacturing company uses Dynamics 365 Supply Chain Management. The production manager wants to reduce setup time on a bottleneck machine. Which THREE actions should the manager take?

Accepted Answer

Define operation properties to sequence orders by setup similarity.. Option A is correct because defining operation properties (such as setup category and setup group) on the route operation lets the system sequence production orders so that jobs with similar setup requirements run consecutively, directly cutting changeover time on the bottleneck. Option B is correct because resource groups let similar machines share setup, so capacity and sequencing can be pooled and setup effort amortized across interchangeable resources rather than being tied to one machine. Option C is correct because grouping production orders by product family (for example via the item's production group or family) minimizes changeovers, since orders with the same family share setup characteristics and can be run together. Option D is not appropriate because simply increasing batch size for all orders does not reduce setup time and can worsen flow and inventory at the bottleneck. Option E is not appropriate here because external setup (preparing tools, materials, or fixtures while the machine still runs) is a lean/SMED shop-floor technique, not a Dynamics 365 Supply Chain Management configuration action the production manager would take in the system.

Answer

Increase the batch size for all production orders on that machine.

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Implement external setup procedures that run while the machine is running.

Question 4

Contoso, Ltd. is a manufacturer of custom machinery. They use Dynamics 365 Supply Chain Management with production orders and subcontracting. A production order for a custom drilling machine requires a specialized heat treatment process that is performed by an external vendor. The heat treatment is set up as a route operation with a resource of type 'Vendor' and a subcontracting purchase agreement. The production order has been released and started, but the vendor reports that they have not received the purchase order for the heat treatment service. The production planner checks the purchase order and finds that it has not been created yet. The planner confirms that the purchase agreement is active and covers the required service. What is the most likely reason that the purchase order was not automatically generated?

Accepted Answer

The operation for heat treatment has not been scheduled on the production route.. In Dynamics 365 Supply Chain Management, a subcontracting purchase order is automatically generated only after the corresponding route operation has been scheduled on the production route. Without scheduling, the system does not know when the service is needed and therefore does not trigger the purchase order creation, even if the purchase agreement is active and the production order has been released.

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The purchase agreement has expired or is not approved.

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The production order status is 'Estimated' and needs to be released first.

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The vendor resource is not set up correctly in the system.

Question 5

Contoso Ltd. is a global manufacturer of industrial pumps. They use Dynamics 365 Supply Chain Management with warehouse management (WMS) enabled. The warehouse in Chicago has been experiencing frequent inventory discrepancies during cycle counting. The discrepancies are mostly for items stored in bulk locations (floor storage) with high movement volume. The warehouse manager suspects that the issue is related to how inventory transactions are processed during outbound picking. When pickers confirm a pick, the system immediately reduces on-hand inventory. However, the physical movement to the staging area often happens later, sometimes after the system confirmation. This timing difference leads to phantom inventory. The manager wants to avoid a full physical inventory and implement a solution that aligns system and physical movements without major process changes. They consider four options:

A. Enable negative inventory adjustments for bulk locations.
B. Use the 'Registration' process instead of picking confirmation for outbound orders.
C. Implement a staging location and use the 'Stage for packing' functionality to defer inventory reduction until the item is physically staged.
D. Disable cycle counting for bulk locations and rely on annual physical counts.

Which option should Contoso implement?

Accepted Answer

Implement a staging location and use the 'Stage for packing' functionality to defer inventory reduction until the item is physically staged.. Implementing a staging location with the 'Stage for packing' functionality allows the system to defer inventory reduction until the item is physically moved to the staging area. This aligns the system transaction with the physical movement, eliminating the phantom inventory caused by early picking confirmation. It solves the timing discrepancy without requiring major process changes or a full physical inventory.

Answer

Disable cycle counting for bulk locations and rely on annual physical counts.

Answer

Enable negative inventory adjustments for bulk locations.

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Use the 'Registration' process instead of picking confirmation for outbound orders.

Question 6

Drag and drop the steps to configure a new inventory item in Dynamics 365 Supply Chain Management in the correct order.

Accepted Answer

1. Create a new product, 2. Select product type, 3. Enter product details, 4. Release product to legal entities. Inventory item setup requires creating a product, selecting type, entering details, and releasing.

Answer

1. Select product type, 2. Create a new product, 3. Enter product details, 4. Release product to legal entities

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1. Create a new product, 2. Enter product details, 3. Select product type, 4. Release product to legal entities

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1. Release product to legal entities, 2. Create a new product, 3. Select product type, 4. Enter product details

Question 7

A distribution company uses Dynamics 365 Supply Chain Management. They notice that warehouse workers are scanning incorrect items during picking, leading to shipment errors. Which feature should they implement to reduce errors?

Accepted Answer

License plate tracking. License plate tracking (LPT) enables warehouse workers to scan a unique barcode on each pallet or container, which is linked to the exact inventory items and quantities in the system. By requiring a license plate scan during picking, the system validates that the correct item is being picked, preventing incorrect item selection and reducing shipment errors.

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Cycle counting

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RFID scanning

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Wave processing

Question 8

A manufacturer uses Dynamics 365 Supply Chain Management and wants to implement a vendor-managed inventory (VMI) process where suppliers monitor stock levels and trigger replenishment. Which feature should they enable?

Accepted Answer

Vendor collaboration. Vendor collaboration in Dynamics 365 Supply Chain Management enables suppliers to view inventory levels, demand forecasts, and purchase orders through a dedicated portal. This allows suppliers to monitor stock and trigger replenishment, which is the core requirement of a vendor-managed inventory (VMI) process.

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Purchase agreements

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Intercompany orders

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Consignment inventory

Question 9

A warehouse manager notices that picking routes are inefficient, causing delays. They want to optimize the travel path for pickers. Which Dynamics 365 Supply Chain Management feature should they use?

Accepted Answer

Wave processing. Wave processing in Dynamics 365 Supply Chain Management is the correct feature because it allows the system to group multiple orders into efficient picking waves, optimizing the travel path for pickers by consolidating work into logical, sequenced routes. This reduces travel time and improves warehouse productivity by creating picking work that follows an optimal path through the warehouse.

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Inventory status

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Mobile device menu items

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Location profiles

Question 10

A company wants to use AI to predict potential stockouts and suggest replenishment actions. Which Dynamics 365 Supply Chain Management capability should they leverage?

Accepted Answer

Demand forecasting. Demand forecasting in Dynamics 365 Supply Chain Management uses AI and machine learning to analyze historical data, seasonal patterns, and external factors to predict future demand. This capability directly addresses the need to predict potential stockouts and suggest replenishment actions by generating accurate demand predictions that feed into planning processes.

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Master planning

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IoT Intelligence

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Inventory optimization

Question 11

Which TWO features in Dynamics 365 Supply Chain Management help reduce inventory carrying costs?

Accepted Answer

Vendor-managed inventory. Vendor-managed inventory (A) is correct because it shifts the responsibility for monitoring stock levels and replenishing materials to the vendor, allowing the buying organization to hold less safety stock and thereby reduce inventory carrying costs. Demand forecasting (E) is correct because accurate forecasting aligns replenishment with anticipated demand, preventing both overstocking and stockouts, which directly lowers the capital, storage, and obsolescence costs of carrying excess inventory. Intercompany planning (B) coordinates supply and demand across legal entities but does not by itself reduce carrying costs. Product variants (C) actually tend to increase SKU count and inventory complexity. RFID tracking (D) improves visibility and accuracy of inventory but does not inherently reduce the amount of inventory carried.

Answer

Intercompany planning

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Product variants

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RFID tracking

Question 12

A production planner reviews a route operation for a manufacturing order. How long, in hours, is the total processing time for this operation?

Accepted Answer

0.75. The total processing time for a route operation is the sum of the setup time and the run time. Based on the route operation data for this manufacturing order, the total processing time is 0.75 hours.

Answer

1.0

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0.25

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0.5

Question 13

A procurement manager reviews a purchase order. How many units of item M-100 are still due to be received?

Accepted Answer

50. The purchase order for item M-100 has a quantity of 100 units ordered. The receipt history shows 50 units have already been received. Therefore, the remaining quantity due to be received is 100 - 50 = 50 units. In Dynamics 365 Supply Chain Management, the 'Open order quantity' or 'Remaining delivery' field on the purchase order line reflects this calculation.

Answer

100

Answer

150

Answer

50

Question 14

A company using Dynamics 365 Supply Chain Management is experiencing delays in order fulfillment because the picking process is not optimized. The warehouse manager wants to implement a system that directs pickers to the most efficient route based on current warehouse layout. Which feature should be configured to achieve this?

Accepted Answer

Location directives with wave processing. Location directives with wave processing are designed to optimize warehouse picking by directing pickers to the most efficient route based on the current warehouse layout. They use predefined criteria (e.g., zone, location rank, or FEFO) to generate pick work during wave execution, ensuring minimal travel time. This directly addresses the delay caused by an unoptimized picking process.

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RFID (Radio-Frequency Identification)

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Mobile device menu items

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Product filters

Question 15

A manufacturing company uses Dynamics 365 Supply Chain Management. They want to implement a Copilot feature that helps procurement agents draft purchase order lines using natural language. Which feature should they enable?

Accepted Answer

Copilot in procurement. The Copilot in procurement feature within Dynamics 365 Supply Chain Management is specifically designed to assist procurement agents in creating purchase order lines using natural language prompts. This capability leverages generative AI to interpret user intent and automatically populate order details, streamlining the procurement process.

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Copilot in Sales

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Copilot in Finance

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Copilot in Customer Service

Question 16

A company uses Dynamics 365 Supply Chain Management. They are setting up a new warehouse and want to ensure that items are stored in locations based on their physical dimensions and turnover rate. Which configuration should they use to define storage strategies?

Accepted Answer

Location profiles. Location profiles in Dynamics 365 Supply Chain Management define storage strategies by specifying rules for item placement based on physical dimensions, turnover rates, and other criteria. They control how locations are used for different types of inventory, such as bulk storage or picking, ensuring efficient warehouse operations.

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Location formats

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Warehouse work policies

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Inventory statuses

Question 17

A company uses Dynamics 365 Supply Chain Management. They have multiple vendors supplying the same raw material. The procurement manager wants to automatically allocate purchase orders to the vendor with the best combination of price, lead time, and quality rating. Which feature should they use?

Accepted Answer

Vendor bid analysis. Vendor bid analysis in Dynamics 365 Supply Chain Management allows procurement managers to automatically evaluate and compare vendor proposals based on price, lead time, and quality rating. It uses scoring rules to rank bids and can automatically allocate purchase orders to the vendor with the best overall score, enabling data-driven vendor selection without manual intervention.

Answer

Purchase agreements

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Request for quotation

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Vendor collaboration

Question 18

A company uses Dynamics 365 Supply Chain Management. Which TWO features are used to manage the quality of incoming materials?

Accepted Answer

Item sampling. Item sampling (A) is correct because it defines how many units of an incoming item must be physically inspected or tested when a quality order is created, directly supporting incoming material quality control. Quality orders (E) are correct because they are the core Supply Chain Management mechanism that generates inspection, test, and sampling work for received items and determines whether material is accepted or rejected. Nonconformance management (B) is not one of the two features asked for here; it handles documenting and resolving problems after they are found rather than managing incoming material quality itself. Quarantine zones (C) are warehouse locations used to hold inventory pending disposition, not the primary feature for managing incoming quality. Batch attributes (D) describe characteristics of batches for tracking and reporting, but they do not drive incoming inspection or acceptance decisions.

Answer

Nonconformance management

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Quarantine zones

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Batch attributes

Question 19

A distribution company uses Dynamics 365 Supply Chain Management. Which TWO methods can be used to reduce the time taken to receive inbound shipments?

Accepted Answer

Use advanced shipping notice (ASN). Option A (Use advanced shipping notice (ASN)) is correct because an ASN electronically communicates the contents, quantities, and expected arrival of an inbound shipment in advance, allowing the warehouse to pre-register the load, pre-generate receipt lines, and validate against the purchase order before the truck arrives, which removes manual data entry and verification at the dock and shortens receiving time. Option E (Use mobile device receiving) is correct because handheld/scanner-based receiving in the Warehouse Management mobile app lets workers scan license plates, item and quantity barcodes directly at the dock, eliminating paper-based or desktop keying and enabling immediate registration and put-away work creation, which speeds up the receipt process. Option B (cross-docking) is not correct here because cross-docking is a flow-through strategy that bypasses put-away and storage to move goods directly from inbound to outbound, which reduces handling and storage time rather than the time taken to receive an inbound shipment. Option C (put-away clusters) is not correct because clustering is a put-away optimization that groups multiple put-away work lines for one worker, affecting the post-receipt put-away step, not the receiving step itself. Option D (quality orders for all receipts) is not correct because mandatory quality orders add inspection and quarantine steps, which increase rather than reduce receiving time.

Answer

Use cross-docking

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Use put-away clusters

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Require quality orders for all receipts

Question 20

Refer to the exhibit. A warehouse manager runs the on-hand inventory report for item P-1000 in warehouse WH01. The report shows zero on-hand quantity but the inventory status is 'Available'. The manager knows that there should be 500 units in stock based on a recent purchase order receipt. What is the most likely cause of this discrepancy?

Accepted Answer

The purchase order receipt has not been registered in the warehouse. The most likely cause is that the purchase order receipt has not been registered in the warehouse (Option A). In Dynamics 365 Supply Chain Management, inventory status is set to 'Available' by default when an item is created or received, but the on-hand quantity only updates after the receipt is physically registered against the warehouse. Since the manager sees zero on-hand quantity despite knowing 500 units were received, the receipt transaction likely exists in the system but hasn't been posted to the warehouse inventory, leaving the quantity unrecorded.

Answer

The item is stored in a different location

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The item is reserved for a sales order

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The item is on a quality order