MB-920 Describe Dynamics 365 Supply Chain Management Practice Test 12 — 15 Questions

Question 1

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?

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

Accepted Answer

Replenishment rules. Replenishment rules automatically generate purchase orders based on inventory levels. Option A is wrong because inventory visibility is a monitoring tool, not for automation. Option B is wrong because vendor collaboration is for communication with vendors, not for automatic PO generation. Option D is wrong because batch balancing is used in production to balance load, not for purchase order generation.

Answer

Inventory visibility

Answer

Vendor collaboration

Answer

Batch balancing

Question 2

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.. Location directives determine the specific pick locations for work orders based on criteria such as inventory location, zone, and sequence. If misconfigured, incorrect locations are assigned, causing delays. Option A is incorrect because mobile device menu items affect the user interface and scanning, not the location logic. Option B is incorrect because wave templates group work and create waves but do not assign specific locations. Option D is incorrect because work templates define the structure of work (e.g., which lines form pick and put) but not the actual 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 3

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. Quality orders can be automatically generated based on sampling plans to perform inspections on a random sample of incoming raw materials. Option A is incorrect because quarantine zones are used to isolate nonconforming materials after inspection, not for random sampling. Option C is incorrect because disposition codes are used to define the outcome of a quality order, not to trigger inspections. Option D is incorrect because nonconformance management is used to manage issues after a nonconformance is identified, not to perform random inspections.

Answer

Quarantine zones

Answer

Disposition codes

Answer

Nonconformance management

Question 4

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. Production journals allow recording of time and quantity. Option A (BOM versions) is wrong because they define product structure, not record labor. Option C (Route operations) is wrong because they define the steps, not record actuals. Option D (Resource groups) is wrong because they group resources, not record time.

Answer

BOM versions

Answer

Route operations

Answer

Resource groups

Question 5

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.. In DDMRP, the planning frequency must be configured on the buffer profile for each item. If the planning frequency is not set, the system will not generate replenishment orders even if stock falls below the reorder point. Option A is incorrect because regenerative mode is not required for DDMRP; DDMRP typically uses net-change planning. Option B is incorrect because 'dynamic planning' is not a concept in DDMRP; the issue is related to buffer profile configuration. Option D is incorrect because coverage groups are used for traditional master planning, but DDMRP does not rely on coverage groups; it uses buffer profiles and demand-driven planning.

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 6

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.. Intercompany order processing is the correct approach for transferring inventory between warehouses in different legal entities. It creates a purchase order in the receiving company and a sales order in the sending company, properly recording the transaction across legal entities. Option A is incorrect because inventory adjustment journals do not track intercompany transfers and are meant for internal adjustments. Option B is incorrect because transfer orders are only valid within a single legal entity. Option C is incorrect because a purchase order alone does not create the corresponding sales order needed for intercompany accounting.

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.

Question 7

A company wants to enable its warehouse workers to use handheld scanners to confirm picking activities. What must be configured in Dynamics 365 Supply Chain Management?

Accepted Answer

Warehouse Management mobile app. Warehouse Management mobile app. This app is the native interface for warehouse workers to use handheld scanners to confirm picking activities. Option B is incorrect because Power Apps mobile app is a general platform and not specifically designed for warehouse management tasks. Option C is incorrect because the Production floor execution interface is intended for manufacturing floor activities, not warehouse picking. Option D is incorrect because mobile device menu items are configuration elements within the Warehouse Management mobile app, but the app itself is required to be configured first.

Answer

Power Apps mobile app

Answer

Production floor execution interface

Answer

Mobile device menu items

Question 8

A company uses Dynamics 365 Supply Chain Management with lot tracking. They need to ensure that the system enforces the first-expiry-first-out (FEFO) principle during picking. What configuration is required?

Accepted Answer

Set the location directive strategy to 'FEFO' for the relevant work order type.. Location directives with a 'FEFO' strategy prioritize picking lots with earliest expiry dates. Option A is wrong because 'Use batch expiration dates' enables expiration date tracking, not FEFO enforcement during picking. Option B is wrong because reservation hierarchies affect reservation order, not picking order. Option D is wrong because batch attributes are for quality or other custom attributes, not for enforcing FEFO.

Answer

Set the warehouse parameter 'Use batch expiration dates' to Yes.

Answer

Configure the reservation hierarchy to reserve by batch and then location.

Answer

Define a batch attribute for expiration date and set it as active for picking.

Question 9

Which TWO features in Dynamics 365 Supply Chain Management are used to manage product quality?

Accepted Answer

Nonconformance management. Options C and D are correct because nonconformance management and quality control (quality orders) are the two primary features used to manage product quality in Dynamics 365 Supply Chain Management. Nonconformance management handles issues with products that do not meet specifications, while quality orders are used to perform inspections and tests. Option A (vendor collaboration) is for communication with vendors, not quality management. Option B (batch balancing) is used in process manufacturing to level loads, not quality. Option E (inventory status) tracks availability, not quality.

Answer

Vendor collaboration

Answer

Batch balancing

Answer

Inventory status

Question 10

Which THREE components are part of the advanced warehouse management setup in Dynamics 365 Supply Chain Management?

Accepted Answer

Location directives. Options A, B, and D are correct. Location directives determine pick/put locations, location profiles define location characteristics, and work templates define work types and processes. Option C (BOM versions) is incorrect because BOM versions are used for product structure and manufacturing, not warehouse management. Option E (Costing methods) is incorrect because costing methods are for inventory valuation and accounting.

Answer

BOM versions

Answer

Costing methods

Question 11

Which TWO planning methods are available in Dynamics 365 Supply Chain Management for master planning?

Accepted Answer

Net change. Options B and C are correct. Net change and regenerative are the two master planning methods in Dynamics 365 Supply Chain Management. Option A (coverage planning) is a type of planning, not a method. Option D (intercompany planning) is a scenario. Option E (demand planning) is a separate module, not a master planning method.

Answer

Coverage planning

Answer

Intercompany planning

Answer

Demand planning

Question 12

Refer to the exhibit. A batch job for inventory replenishment is in 'Waiting' status. The last run failed due to insufficient inventory. What should you do to resolve the issue?

Accepted Answer

Manually adjust inventory levels for item A0001.. The batch job failed due to insufficient inventory for item A0001. Manually adjusting the inventory levels resolves the root cause—lack of available stock—allowing the batch job to succeed on its next run without requiring a new job or schedule change. In Dynamics 365 Supply Chain Management, inventory adjustments update the on-hand quantity directly, which the replenishment logic uses to determine if a replenishment is needed.

Answer

Change the recurrence to run every hour.

Answer

Cancel the batch job and create a new one.

Answer

Set the batch job to 'Withhold' to prevent future runs.

Question 13

A manufacturing company uses Dynamics 365 Supply Chain Management. They notice that the forecasted demand for a critical raw material is consistently lower than actual consumption, causing stockouts. What is the most likely cause?

Accepted Answer

The forecast profile does not include enough historical data or uses an inappropriate model.. Forecast profiles define how historical data is used to generate forecasts; if the profile uses too short a historical period or an inappropriate model, forecasts will be inaccurate. Option A is incorrect because coverage groups affect replenishment logic, not forecast accuracy. Option B is incorrect because inventory statuses affect item availability, not forecast generation. Option C is incorrect because item model groups determine costing methods, not forecasting.

Answer

The coverage group for the item is set to 'Period' instead of 'Min/Max'.

Answer

The item's inventory status is set to 'Blocked' for some warehouses.

Answer

The item's model group is set to 'FIFO' instead of 'Weighted average'.

Question 14

A distribution company uses Dynamics 365 Supply Chain Management. They want to use AI to predict customer demand and automatically suggest purchase orders. Which feature should they enable?

Accepted Answer

Demand Forecasting feature. The Demand Forecasting feature uses machine learning to predict customer demand and can automatically suggest purchase orders for replenishment. Option A is wrong because the Warehouse management module deals with warehouse operations, not demand prediction. Option B is wrong because the Planning Optimization add-in improves master planning performance but does not provide AI-based demand prediction. Option C is wrong because the Inventory Visibility add-in provides near real-time inventory visibility, not demand prediction.

Answer

Warehouse management module

Answer

Planning Optimization add-in

Answer

Inventory Visibility add-in

Question 15

A company wants to automatically create purchase orders when inventory for a specific item drops below a predefined level. Which master planning concept should be used?

Accepted Answer

Reorder point. In Dynamics 365 Supply Chain Management, the reorder point concept is used to automatically trigger purchase orders when inventory drops below a predefined level. The reorder point is a specific inventory level that signals the need for replenishment. Master planning monitors inventory levels and generates planned purchase orders when the reorder point is reached. Safety stock, on the other hand, is an additional buffer quantity meant to protect against stockouts due to variability, not the primary trigger for replenishment. Coverage groups define planning parameters like time fences and replenishment strategies, but not the specific trigger level. Forecast models are used for demand forecasting, not for inventory replenishment triggers.

Answer

Safety stock

Answer

Coverage group

Answer

Forecast model