MB-920 Describe Dynamics 365 Supply Chain Management Practice Test 1 — 15 Questions

Question 1

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

Answer

0.25

Answer

0.5

Question 2

A company uses Dynamics 365 Supply Chain Management. They want to automate the creation of purchase orders when inventory for a specific item drops below a predefined level. Which parameter should be set on the item?

Accepted Answer

Maximum stock quantity. In Dynamics 365 Supply Chain Management, the maximum stock quantity is used in conjunction with a minimum stock quantity as part of the min/max coverage method. When the on-hand inventory falls below the minimum level, the system automatically generates a planned purchase order to replenish inventory up to the maximum quantity, automating the creation of purchase orders without manual intervention. The reorder point parameter triggers planned orders during master planning but does not automatically create purchase orders without additional release steps.

Answer

Cycle counting frequency

Answer

Reorder point

Answer

Safety stock quantity

Question 3

A company uses Dynamics 365 Supply Chain Management to manage its warehouse operations. The warehouse manager wants to ensure that items are stored in specific locations based on their storage dimensions, such as 'HighVolume' and 'LowTurnover'. Which feature should be configured to automatically guide putaway operations?

Accepted Answer

Location directives. Location directives are the correct feature to configure for automatically guiding putaway operations based on storage dimensions such as 'HighVolume' and 'LowTurnover'. They define rules and conditions for where items should be placed. Option A (Wave templates) is incorrect because wave templates control picking and shipping processes, not putaway. Option B (Inventory statuses) is incorrect because they manage item availability, not putaway routing. Option C (Cycle counting plans) is incorrect because they are used for inventory accuracy checks, not for directing putaway.

Answer

Wave templates

Answer

Inventory statuses

Answer

Cycle counting plans

Question 4

Refer to the exhibit. A warehouse uses location directives for sales picking with FEFO strategy. Workers are unable to pick from bulk locations even though there is stock. What is the most likely cause?

Accepted Answer

The location profile 'BULK' is not set to allow picking.. Location directives use location profiles to filter locations for picking. If the 'BULK' location profile is not configured to allow picking (i.e., the 'Allow pick' option is disabled), the system will not consider bulk locations, even if stock is available. The FEFO strategy still requires valid picking locations; without the proper profile setting, the directive cannot select those locations. Option B is incorrect because FEFO does rely on expiration dates, but that does not prevent picking from bulk locations—the issue is profile setup. Option C is incorrect because the exhibit shows both 'BULK' and 'PICK' profiles in the directive, so the line exists. Option D is incorrect because switching to FIFO would not resolve a profile permission issue; the core problem is profile configuration, not strategy.

Answer

The items do not have expiration dates set.

Answer

The location directive is missing a line for the 'PICK' profile.

Answer

The strategy should be FIFO instead of FEFO.

Question 5

Refer to the exhibit. A master plan has generated a planned purchase order for 100 units of item A0001 with status 'Approved'. What does the 'Approved' status indicate?

Accepted Answer

The order has been reviewed and confirmed by a planner.. A planned purchase order with 'Approved' status indicates that a planner has reviewed and confirmed it. This status signifies that the order is approved for execution. Option B is incorrect because 'Approved' means it has been reviewed, not that it is waiting for review. Option C is incorrect because 'Approved' does not mean fully completed; the order still needs to be processed further. Option D is incorrect because 'Approved' indicates it has been firmed, but 'firmed' does not mean it is ready to be released; it still requires additional steps.

Answer

The order has been automatically created and is waiting for review.

Answer

The order has been fully processed and completed.

Answer

The order has been firmed and is ready to be released.

Question 6

A company wants to track inventory in multiple warehouses using serial numbers. In Dynamics 365 Supply Chain Management, what must be configured on the item to enable mandatory serial number tracking?

Accepted Answer

Set the tracking dimension group to include serial numbers and mark them as 'Active' and 'Mandatory'.. The tracking dimension group defines which dimensions (like serial number) are active and mandatory. Option B is wrong because inventory model group controls costing and inventory policies, not serial numbers. Option C is wrong because storage dimension group controls site, warehouse, etc., not serial numbers. Option D is wrong because coverage group controls replenishment.

Answer

Set the inventory model group to include serial numbers.

Answer

Set the storage dimension group to include serial numbers.

Answer

Set the coverage group to include serial numbers.

Question 7

A company creates a product with the configuration shown. They produce 10 units of this item. How many units of raw material RM-001 are required?

Accepted Answer

20 units. The bill of materials (BOM) requires 2 units of RM-001 per finished good. For 10 units, 10 * 2 = 20 units. Option A is incorrect because 40 units is double the required amount. Option C is incorrect because 10 units is the quantity of finished goods, not the raw material requirement. Option D is incorrect because it provides the wrong amount for RM-001 and includes an unnecessary reference to RM-002.

Answer

40 units

Answer

10 units

Answer

10 units for RM-001 and 10 for RM-002

Question 8

A company uses Dynamics 365 Supply Chain Management. They need to track inventory by batch number and expiration date. How should they configure the product?

Accepted Answer

Assign a tracking dimension group that includes batch and expiration date. In Dynamics 365 Supply Chain Management, batch numbers and expiration dates are tracking dimensions, which are configured through tracking dimension groups. A tracking dimension group defines which tracking dimensions (e.g., batch number, serial number, expiration date) are active and mandatory for an item. Therefore, to track inventory by batch number and expiration date, you must assign a tracking dimension group that includes these dimensions. Option A is incorrect because storage dimension groups control dimensions like site, warehouse, and location, not batch or expiration dates. Option C is correct.

Answer

Assign a storage dimension group that includes batch and expiration date

Answer

Enable warehouse management only

Answer

Configure the item's product category

Question 9

A manufacturing company uses Dynamics 365 Supply Chain Management. The production scheduler notices that a critical raw material is frequently out of stock, causing delays. The procurement team manually places purchase orders only when stock reaches zero. Which feature should be configured to automatically trigger purchase orders based on demand forecasts and current inventory levels?

Accepted Answer

Master planning. Master planning in Dynamics 365 Supply Chain Management uses demand forecasts, current inventory, and lead times to generate planned purchase orders automatically. Option A is wrong because warehouse management focuses on storage and movement, not procurement planning. Option B is wrong because inventory closing updates financial postings, not procurement. Option D is wrong because quality management handles inspections, not replenishment.

Answer

Warehouse management

Answer

Inventory closing

Answer

Quality management

Question 10

A manufacturing company is experiencing stockouts of a critical raw material despite maintaining high inventory levels. The procurement team places purchase orders based on historical usage, but demand has become erratic. Which action should the supply chain manager take to improve material availability without increasing inventory costs?

Accepted Answer

Set up a reorder point with dynamic safety stock calculation in Demand Planning.. Dynamics 365 Supply Chain Management's Demand Planning module can calculate dynamic safety stock based on forecasted demand variability and service level targets. This allows the system to automatically adjust reorder points in response to erratic demand patterns, improving material availability without simply increasing inventory levels across the board.

Answer

Increase safety stock percentages for all raw materials by 20%.

Answer

Switch from purchase orders to blanket purchase agreements with the supplier.

Answer

Negotiate with the supplier to reduce lead time by 50%.

Question 11

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?

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.

Answer

Enable replenishment to ensure pick locations are fully stocked.

Answer

Use location directives to direct putaway to random locations.

Answer

Implement cluster picking to group orders by customer.

Question 12

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.

Answer

Finite scheduling on the resource group.

Answer

Production order details form.

Answer

Capacity planning workspace.

Question 13

A company uses Dynamics 365 Supply Chain Management to manage its supply chain. The procurement manager notices that purchase requisitions are not being converted to purchase orders automatically as expected. The workflow for purchase requisitions is set to auto-approve for amounts under $1,000. Upon investigation, the manager finds that a requisition for $950 is stuck in 'Draft' status. What is the most likely cause?

Accepted Answer

The purchase requisition has not been submitted for review.. In Dynamics 365 Supply Chain Management, a purchase requisition must be explicitly submitted to trigger the workflow. Even if the workflow is configured for auto-approval, the requisition remains in 'Draft' status until the user clicks 'Submit'. The $950 requisition was never submitted, so the auto-approval process never started.

Answer

The workflow requires budget approval for all requisitions.

Answer

The purchase requisition was rejected by the workflow.

Answer

The dollar limit for auto-approval is set to $900.

Question 14

A company uses Dynamics 365 Supply Chain Management for warehouse operations. The warehouse manager wants to improve inventory accuracy and reduce the time spent on physical inventory counts. Which TWO actions should the manager take?

Accepted Answer

Implement cycle counting based on ABC classification.. Cycle counting based on ABC classification allows the warehouse to count high-value or fast-moving items (A items) more frequently than low-value or slow-moving items (C items). This targeted approach improves inventory accuracy without the disruption of full physical counts, and Dynamics 365 Supply Chain Management supports ABC classification directly in the cycle counting setup.

Answer

Increase safety stock levels for fast-moving items.

Answer

Schedule full inventory counts at the end of each month.

Answer

Require daily counting of all inventory items.

Question 15

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.. Defining operation properties allows the system to sequence production orders on a bottleneck resource based on setup similarity, reducing changeover time. In Dynamics 365 Supply Chain Management, operation properties are attributes assigned to operations that the scheduling engine uses to group similar setups together, minimizing the number and duration of setup changes.

Answer

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

Answer

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