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

Question 1

A company uses Dynamics 365 Supply Chain Management. They are implementing a new production process that requires a co-product and a by-product. The co-product has a positive sales value, while the by-product has a negative value. How should they configure the production order to correctly account for these outputs?

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

Accepted Answer

Configure the co-product and by-product in the formula with the appropriate cost allocation and negative cost price for the by-product.. Co-products and by-products are configured in the formula (for process manufacturing) with cost allocation and cost price settings. The by-product's negative cost price ensures its value reduces the overall production cost, while co-products share the remaining cost based on allocation percentages. This accurately reflects the economic relationship and inventory valuation.

Answer

Add the co-product and by-product as separate lines on the production order BOM with negative quantities.

Answer

Use the 'By-product' check box on the production order line and set the cost to zero.

Answer

Create separate production orders for the co-product and by-product after the main production order is completed.

Question 2

A company uses Dynamics 365 Supply Chain Management. They are implementing a new production process that requires a co-product and a by-product. The co-product has a positive sales value, while the by-product has a negative value. How should they configure the production order to correctly account for these outputs?

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

Accepted Answer

Enable the 'Vendor collaboration' feature in the Feature management workspace.. To enable vendor collaboration in Dynamics 365 Supply Chain Management, you must first enable the Vendor collaboration feature in Feature management. Then, you need to create and assign a vendor collaboration security role to the vendor's contacts so they can access the portal. These two steps provide the necessary functionality and security for vendors to view purchase orders and update delivery dates. Other configurations like separate legal entities or workflows are not required.

Answer

Set up a separate legal entity for each vendor to isolate their data.

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Configure the 'Purchase order' workflow to include a vendor confirmation step.

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Enable the 'Trade agreement' parameter to allow vendors to update prices.

Question 3

A company uses Dynamics 365 Supply Chain Management. They are implementing a new production process that requires a co-product and a by-product. The co-product has a positive sales value, while the by-product has a negative value. How should they configure the production order to correctly account for these outputs?

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

Accepted Answer

Set the item's coverage code to Min/Max.. To automatically create purchase orders when inventory falls below a minimum, the item must use the Min/Max coverage code and have minimum and maximum quantities defined in its coverage group. Master planning uses these values to detect shortages and generate planned purchase orders. Purchase agreements, lead times, and warehouse management settings do not trigger replenishment on their own, so they are not among the two required elements.

Answer

Enable the item for warehouse management processes.

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Create a purchase agreement with the vendor.

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Set up a vendor lead time for the item.

Question 4

A company uses Dynamics 365 Supply Chain Management. They are implementing a new production process that requires a co-product and a by-product. The co-product has a positive sales value, while the by-product has a negative value. How should they configure the production order to correctly account for these outputs?

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

Accepted Answer

Set up mobile device user accounts and menu items.. To allow workers to sign in to the Warehouse Management mobile app and perform picking and putaway, the company must set up work users and work user groups, and configure mobile device user accounts and menu items. These configurations enable authentication and provide access to the necessary tasks. Location directives and work templates are important for work generation but not for mobile app sign-in.

Answer

Configure location directives for picking and putaway.

Answer

Create work templates for picking and putaway.

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Configure inventory reservation hierarchies.

Question 5

A manufacturing company uses Dynamics 365 Supply Chain Management. They want to track the costs associated with producing a specific item, including raw materials, labor, and overhead. Which feature should they use?

Accepted Answer

Production order costing. Production order costing in Dynamics 365 Supply Chain Management is designed to track the actual costs of producing a specific item, including raw materials, labor, and overhead. It provides detailed cost breakdowns for each production order, enabling accurate cost analysis and inventory valuation. This feature is essential for manufacturers who need to understand the cost structure of their products and make informed pricing and production decisions.

Answer

Bill of materials (BOM) calculations

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Inventory valuation

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Cost accounting

Question 6

A company uses Dynamics 365 Supply Chain Management. They are implementing a new production process that requires a co-product and a by-product. The co-product has a positive sales value, while the by-product has a negative value. How should they configure the production order to correctly account for these outputs?

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

Accepted Answer

Set up a location directive for receiving to direct items to the staging area.. To enable receiving into a staging area, you need a location directive that directs items to the staging area during receiving, and a work template that includes both a receive step (to staging) and a putaway step (from staging to final location). These two configurations together define the physical flow and the work instructions for workers, ensuring items are staged before final putaway.

Answer

Set up a work policy that allows receiving and putaway in the same work order.

Answer

Enable the staging location as a license plate-controlled location.

Answer

Configure a work template with a putaway step that includes the staging location.

Question 7

A distribution company uses Dynamics 365 Supply Chain Management. They have a warehouse with multiple zones and locations. They want to optimize putaway by directing high-demand items to locations closest to the shipping dock, while ensuring that heavy items are stored on lower shelves. Which warehouse management feature should they configure?

Accepted Answer

Putaway rules with location directives and location profiles that include weight capacity and picking area ranking. Putaway optimization in Dynamics 365 Supply Chain Management is achieved through location directives combined with location profiles. Location directives determine the putaway location based on queries that can include item attributes, while location profiles define constraints like weight capacity and picking area ranking. This ensures high-demand items go to prime picking locations near the shipping dock and heavy items are stored on lower shelves. Other features like slotting or work policies support but do not directly execute putaway.

Answer

Warehouse work policies with location ranking and item constraints

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Slotting with demand forecasting and item constraints

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Location directives with a query that filters by item attributes and location profile

Question 8

A manufacturing company uses Dynamics 365 Supply Chain Management. They want to schedule production jobs on specific resources, considering finite capacity and material availability. They need to ensure that the schedule respects the order of operations and minimizes changeover times. Which scheduling method should they use?

Accepted Answer

Job scheduling. Job scheduling in Dynamics 365 Supply Chain Management schedules each production job on specific resources, respecting finite capacity and material availability when configured. It sequences jobs based on the route and can use setup time matrices to minimize changeover times. Operations scheduling, master planning, and capacity planning do not provide this level of detailed, resource-constrained scheduling.

Answer

Operations scheduling

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Capacity planning

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Master planning

Question 9

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%.

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

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

Question 10

A company uses Dynamics 365 Supply Chain Management. They are implementing a new production process that requires a co-product and a by-product. The co-product has a positive sales value, while the by-product has a negative value. How should they configure the production order to correctly account for these outputs?

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

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.

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The purchase requisition was rejected by the workflow.

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

Question 11

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.. Option A is correct because cycle counting based on ABC classification lets the warehouse count high-value or high-velocity items more frequently while counting low-priority items less often, which directly improves inventory accuracy without the disruption of full counts. Option B is correct because handheld scanners capture inventory movements (receipts, picks, transfers) at the point of transaction, reducing manual data-entry errors and keeping on-hand quantities accurate in Dynamics 365 Supply Chain Management. Option C is not correct because raising safety stock addresses stockout risk, not counting accuracy or count time. Option D is not correct because monthly full physical inventories are time-consuming and do not reduce counting effort. Option E is not correct because daily counting of all items is operationally impractical and would increase, not reduce, time spent on counts.

Answer

Increase safety stock levels for fast-moving items.

Answer

Schedule full inventory counts at the end of each month.

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Require daily counting of all inventory items.

Question 12

Refer to the exhibit. A batch job for inventory closing failed. The error indicates open inventory transactions for item A-100. What should the supply chain analyst do to resolve the issue and allow inventory closing to complete?

Accepted Answer

Post or cancel the open inventory transactions for item A-100.. Inventory closing cannot complete while there are open inventory transactions (e.g., sales orders, production orders, or transfer orders) that have not been posted or canceled. The correct action is to post or cancel those open transactions for item A-100, which clears the blocking records and allows the inventory closing batch job to finalize. This is a standard prerequisite in Dynamics 365 Supply Chain Management for inventory close processes.

Answer

Perform a physical inventory count for item A-100.

Answer

Change the batch job recurrence to run every hour.

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Rerun the batch job immediately after the next scheduled run.

Question 13

A manufacturing company uses Dynamics 365 Supply Chain Management. They want to improve inventory accuracy and reduce stockouts. Which TWO actions should they take?

Accepted Answer

Use cycle counting to regularly verify inventory.. Option A is correct because cycle counting continuously verifies inventory quantities on a rolling basis, catching discrepancies early and improving inventory record accuracy without shutting down operations. Option C is correct because safety stock acts as a buffer for critical items, absorbing demand and lead-time variability so those items do not stock out. Option B is not correct because ABC classification is a prioritization technique that helps focus counting and planning efforts, but by itself it does not directly verify inventory or prevent stockouts. Option D is not correct because sales forecasting supports demand planning but does not by itself ensure inventory accuracy or eliminate stockouts for critical items. Option E is not correct because annual physical inventory counts are infrequent and can allow errors and stockouts to persist throughout the year.

Answer

Implement ABC classification for all items.

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Enable sales forecasting for all products.

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Conduct annual physical inventory counts.

Question 14

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

Accepted Answer

Navigate to Sales orders list, then Create a new sales order, then Select customer, then Add items, then Submit order.. Creating a sales order involves navigating to the sales orders list, creating a new order, selecting the customer, adding items, and submitting.

Answer

Navigate to Sales orders list, then Select customer, then Create a new sales order, then Add items, then Submit order.

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Navigate to Sales orders list, then Create a new sales order, then Add items, then Select customer, then Submit order.

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Navigate to Sales orders list, then Create a new sales order, then Select customer, then Submit order, then Add items.

Question 15

Match each Dynamics 365 Supply Chain Management concept to its description.

Accepted Answer

Production control: Manage and schedule production orders. The correct matches are: Production control with managing production orders, Inventory management with tracking inventory, Warehouse management with warehousing processes, and Transportation management with shipments. The distractors swap descriptions between Production control and Inventory management.

Answer

Production control: Track inventory levels and transactions

Answer

Inventory management: Manage and schedule production orders