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

Question 1

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 2

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. Option A is correct because the 'Shipment and receipt' process for transfer orders physically moves inventory. Option B is wrong because 'Inventory adjustment' corrects quantities, not transfers. Option C is wrong because 'Inventory counting' is for cycle counts. Option D is wrong because 'Production consumption' is for manufacturing.

Answer

Perform an inventory counting journal

Answer

Create an inventory adjustment journal

Answer

Post a production consumption journal

Question 3

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. Option C is correct because 'Coverage groups' allow setting up decoupled lead times and buffer zones, essential for DDMRP. Option A is wrong because 'Master planning' is the engine but not specific to DDMRP. Option B is wrong because 'Forecast models' are for traditional demand forecasting. Option D is wrong because 'BOM versions' define product structure.

Answer

Master planning parameters

Answer

BOM versions

Answer

Forecast models

Question 4

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. Option B is correct because the 'Vendor collaboration' workspace allows vendors to view POs, confirm deliveries, and submit invoices. Option A is wrong because the 'Customer portal' is for customers. Option C is wrong because the 'Self-service portal' is generic. Option D is wrong because 'Employee self-service' is for HR.

Answer

Employee self-service

Answer

Customer portal

Answer

Self-service portal

Question 5

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 6

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

Accepted Answer

Inventory blocking. Options A and D are correct. Cycle counting is a method to count inventory items on a recurring basis to ensure accuracy. Inventory blocking prevents usage of problematic inventory. Option B is wrong because location directives guide putaway, not accuracy. Option C is wrong because wave templates manage outbound picking. Option E is wrong because transportation management handles shipping routes.

Answer

Wave templates

Answer

Location directives

Answer

Transportation management

Question 7

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 D are correct. Bills of materials (BOMs), routes, and production orders are core components of production control. Option B is wrong because purchase orders are in procurement. Option E is wrong because sales orders are in sales and marketing.

Answer

Purchase orders

Answer

Sales orders

Question 8

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

Accepted Answer

Wave processing. Options B and D are correct. Wave processing and location directives are key capabilities of warehouse management. Option A is wrong because route planning is in transportation management. Option C is wrong because vendor collaboration is a separate workspace. Option E is wrong because production scheduling is in production control.

Answer

Production scheduling

Answer

Route planning for delivery

Answer

Vendor collaboration

Question 9

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.. Option C is correct because inventory close with FIFO recalculates the cost of goods sold and adjusts inventory values, ensuring consistency. Option A is wrong because inventory status does not affect valuation. Option B is wrong because batch attributes are for quality, not cost. Option D is wrong because inventory recalculation is for average cost, not FIFO.

Answer

The item has batch attributes configured.

Answer

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

Answer

The inventory recalculation was run incorrectly.

Question 10

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 11

A company uses Dynamics 365 Supply Chain Management with advanced warehouse management. Workers are reporting that pick lines are being created with incorrect locations, causing delays. What could be the root cause?

Accepted Answer

Location directives are incorrectly configured.. Option A is correct because location directives determine the pick locations for work orders. If misconfigured, incorrect locations are assigned. Option B is wrong because mobile device menu items affect the interface, not location logic. Option C is wrong because wave templates group work but do not assign locations. Option D is wrong because work templates define the structure of work, not specific locations.

Answer

Mobile device menu items are set up incorrectly.

Answer

Wave templates are not assigned to the correct warehouse.

Answer

Work templates have the wrong work class.

Question 12

A company wants to ensure that quality inspections are performed on a random sample of incoming raw materials. Which feature should be configured in Dynamics 365 Supply Chain Management?

Accepted Answer

Quality orders with sampling plans. Option C is correct because quality orders can be automatically generated based on sampling plans. Option A is wrong because quarantine zones are for nonconforming material. Option B is wrong because nonconformance management handles issues after inspection. Option D is wrong because disposition codes are for final handling.

Answer

Quarantine zones

Answer

Disposition codes

Answer

Nonconformance management

Question 13

A manufacturer uses Dynamics 365 Supply Chain Management's production control module. They want to record the actual labor hours spent on a production order. Which option should they use?

Accepted Answer

Production journals. Option B is correct because production journals allow recording of time and quantity. Option A is wrong because route operations define the steps, not record actuals. Option C is wrong because BOM versions define product structure. Option D is wrong because resource groups group resources, not record time.

Answer

BOM versions

Answer

Route operations

Answer

Resource groups

Question 14

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 15

A company uses Dynamics 365 Supply Chain Management to manage multi-site operations. They need to transfer inventory between two warehouses in different legal entities. What is the correct approach?

Accepted Answer

Use intercompany order processing to create a purchase order and sales order.. Option C is correct because intercompany transactions are designed for transfers between legal entities. Option A is wrong because transfer orders are for within the same legal entity. Option B is wrong because purchase orders are for procurement from vendors, not internal transfers. Option D is wrong because inventory journals are for adjustments, not transfers between entities.

Answer

Use an inventory adjustment journal to reduce stock in one warehouse and increase in the other.

Answer

Create a transfer order between the two warehouses.

Answer

Create a purchase order from the receiving warehouse to the sending warehouse.