MB-920 Describe Dynamics 365 Supply Chain Management Practice Test 11 — 15 Questions

Question 1

A company uses Transportation Management. The exhibit shows a rate configuration for a carrier. If a shipment weighs 8 kg, what is the total freight cost?

Accepted Answer

$45.00. The total freight cost is calculated as RateBase + (RatePerKg * weight) = $25.00 + ($2.50 * 8 kg) = $25.00 + $20.00 = $45.00. Since $45.00 exceeds the MinimumCharge of $10.00, the total is $45.00. Option B is incorrect because it equals only the MinimumCharge ($10.00), ignoring the RateBase and per-kg charge. Option C is incorrect because it equals only the per-kg charge ($20.00), omitting the RateBase. Option D is incorrect because it represents an erroneous calculation, such as using the RateBase plus MinimumCharge ($35.00).

Answer

$10.00

Answer

$20.00

Answer

$35.00

Question 2

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. A Warehouse Transfer moves inventory from one location to another, updating the location for the license plate. Option A is wrong because Sales Order Picking changes quantity, not necessarily the location. Option B is wrong because Cycle Counting corrects quantity discrepancies, not location. Option C is wrong because Purchase Order Receipt creates inventory, which may assign a location but does not move existing inventory.

Answer

Sales Order Picking

Answer

Cycle Counting

Answer

Purchase Order Receipt

Question 3

A company uses Master Planning. The exhibit shows a plan configuration. What is the effect of setting UseForecast to 'Yes'?

Accepted Answer

It includes demand forecast in planned orders. UseForecast includes demand forecast in the plan. Option A is wrong because forecast is used for demand, not supply. Option B is wrong because forecast can be time-phased. Option D is wrong because forecast is used in planning, not just safety stock.

Answer

It uses historical demand only

Answer

It ignores supply forecasts

Answer

It only affects safety stock calculations

Question 4

A manufacturer uses Dynamics 365 Supply Chain Management to manage production orders. They want to ensure that raw materials are automatically reserved and picked when a production order is released. Which parameter should be set on the production order or in the system?

Accepted Answer

Production order status. Releasing a production order changes its status to 'Released'. The automatic reservation and picking of raw materials upon release is controlled by the 'Automatic reservation' parameter, typically set in the coverage group or production order defaults. None of the listed options (Route version, Production order status, Reservation hierarchy, BOM version) correspond to this parameter.

Answer

Route version

Answer

Reservation hierarchy

Answer

BOM version

Question 5

A company uses Dynamics 365 Supply Chain Management to manage its supply chain. They notice that purchase order prices are not being updated correctly when vendors change prices in the vendor portal. What should they configure to automatically update purchase order prices based on vendor price changes?

Accepted Answer

Purchase price update. 'Purchase price update' (part of Procurement and Sourcing) automatically updates purchase order prices when vendor prices change. Option A is wrong because 'Vendor rebate' is for discounts, not price updates. Option C is wrong because 'Purchase order approval workflow' is for authorization, not price synchronization. Option D is wrong because 'Trade agreement journal' records price agreements but does not automatically update existing purchase orders.

Answer

Vendor rebate

Answer

Purchase order approval workflow

Answer

Trade agreement journal

Question 6

A logistics company uses Dynamics 365 Supply Chain Management to manage transportation. They want to use the built-in route planning to optimize delivery routes. Which module should they primarily use?

Accepted Answer

Transportation management. The 'Transportation management' module provides route planning, rate shopping, and shipment consolidation. Option A is wrong because 'Warehouse management' focuses on internal warehouse operations, not transportation. Option C is wrong because 'Production control' manages manufacturing, not transportation. Option D is wrong because 'Inventory management' handles stock levels, not route planning.

Answer

Warehouse management

Answer

Production control

Answer

Inventory management

Question 7

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. Analyzing and optimizing location directive queries and indexes can identify performance bottlenecks such as missing indexes or inefficient query logic, which directly improves the 'Release to warehouse' batch job performance. Option A is incorrect because disabling location directives would break the putaway process entirely. Option C is incorrect because adding more batch servers adds capacity but does not address inefficient location directives. Option D is incorrect because reducing wave steps may affect warehouse functionality but does not address the root cause of slow location directive processing.

Answer

Disable location directives

Answer

Increase the number of batch servers

Answer

Reduce the number of wave steps

Question 8

A company uses Dynamics 365 Supply Chain Management to manage its inventory across multiple warehouses. They want to transfer items between warehouses using a transfer order. Which process should they use to physically move the inventory?

Accepted Answer

Ship the transfer order from the source warehouse and receive it at the destination warehouse. To physically move inventory between warehouses in Dynamics 365 Supply Chain Management, the correct process is to ship the transfer order from the source warehouse and then receive it at the destination warehouse. This two-step process updates inventory quantities in both locations and creates the necessary inventory transactions to reflect the movement. Simply creating a transfer order without shipping and receiving does not change physical stock levels.

Answer

Perform an inventory counting journal

Answer

Create an inventory adjustment journal

Answer

Post a production consumption journal

Question 9

A company uses Dynamics 365 Supply Chain Management and wants to implement demand-driven material requirements planning (DDMRP). Which feature should they configure to support DDMRP?

Accepted Answer

Coverage groups with appropriate settings. 'Coverage groups' allow setting up decoupled lead times and buffer zones, which are essential for DDMRP. Option A is wrong because 'Master planning parameters' are general settings for the master planning engine, not specific to DDMRP. Option B is wrong because 'BOM versions' define product structure and are not directly related to DDMRP. Option C is wrong because 'Forecast models' are used for traditional demand forecasting, not for the buffer-driven approach of DDMRP.

Answer

Master planning parameters

Answer

BOM versions

Answer

Forecast models

Question 10

A company uses Dynamics 365 Supply Chain Management to manage vendor collaboration. They want vendors to view and respond to purchase orders directly in the system. Which portal or workspace should they enable?

Accepted Answer

Vendor collaboration workspace. The 'Vendor collaboration workspace' allows vendors to view purchase orders, confirm deliveries, and submit invoices directly in Dynamics 365 Supply Chain Management. Option B (Employee self-service) is for HR-related tasks, not vendor collaboration. Option C (Customer portal) is for customers, not vendors. Option D (Self-service portal) is a generic term and not specific to vendor collaboration in this context.

Answer

Employee self-service

Answer

Customer portal

Answer

Self-service portal

Question 11

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'. Setting the default order type to 'Direct delivery' on the item or customer enables automatic creation of purchase orders from sales orders when direct delivery is used. Option A is wrong because demand forecasting is used for predicting future demand, not for automating purchase order generation from sales orders. Option C is wrong because intercompany orders are for transactions between legal entities within the same organization, not for direct delivery with external vendors. Option D is wrong because purchase agreements are for long-term contracts with vendors but do not automatically generate purchase orders from sales orders.

Answer

Set up demand forecasting

Answer

Set up an intercompany order

Answer

Set up a purchase agreement

Question 12

Which TWO features in Dynamics 365 Supply Chain Management can be used to manage inventory accuracy?

Accepted Answer

Inventory blocking. Inventory blocking (Option D) is correct because it allows users to physically or financially block inventory that is damaged, on hold for quality inspection, or reserved for a specific purpose, preventing it from being picked or shipped. This directly maintains inventory accuracy by ensuring that only available, unblocked stock is counted in available quantities. Cycle counting (Option E) is correct because it is a perpetual inventory audit method where a subset of items is counted on a recurring schedule, enabling continuous validation of on-hand quantities against system records without requiring a full physical inventory shutdown.

Answer

Wave templates

Answer

Location directives

Answer

Transportation management

Question 13

Which THREE components are part of the production control module in Dynamics 365 Supply Chain Management?

Accepted Answer

Bills of materials (BOMs). Options A, C, and E are correct. Bills of materials (BOMs), routes, and production orders are core components of the production control module. Option B is incorrect because purchase orders belong to the procurement module. Option D is incorrect because sales orders belong to the sales and marketing module.

Answer

Purchase orders

Answer

Sales orders

Question 14

Which TWO capabilities are provided by the Warehouse management module in Dynamics 365 Supply Chain Management?

Accepted Answer

Wave processing. Options B and E are correct. Wave processing and location directives are key capabilities of the Warehouse management module. Option A is incorrect because production scheduling is handled by the Production control module. Option C is incorrect because route planning for delivery is part of Transportation management. Option D is incorrect because vendor collaboration is a separate workspace in Dynamics 365.

Answer

Production scheduling

Answer

Route planning for delivery

Answer

Vendor collaboration

Question 15

A manufacturing company uses Dynamics 365 Supply Chain Management. They notice that the inventory valuation for a specific item is inconsistent between the financial and operational reports. The item uses FIFO costing. What could be the most likely cause of this discrepancy?

Accepted Answer

The inventory close process has not been run for the period.. The inventory close process recalculates cost of goods sold and adjusts inventory values for FIFO costing, ensuring consistency between financial and operational reports. Option A is incorrect because batch attributes are used for quality tracking and traceability, not inventory valuation. Option B is incorrect because an inventory status of 'Blocked' prevents transactions but does not affect the valuation calculation itself. Option D is incorrect because inventory recalculation is primarily for average cost methods, not FIFO; FIFO relies on the inventory close process to correct valuations.

Answer

The item has batch attributes configured.

Answer

The item's inventory status is set to 'Blocked'.

Answer

The inventory recalculation was run incorrectly.