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

Question 1

Match each Dynamics 365 Project Operations pricing method to its description.

Accepted Answer

Cost plus: Customer pays actual costs plus an agreed-upon profit margin.. In Dynamics 365 Project Operations, Cost plus covers actual costs plus profit, Fixed price is a predetermined total, and Time and materials charges based on actual hours and materials. The distractors swap these definitions.

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Fixed price: Customer pays based on actual time and materials.

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Time and materials: Customer pays a set amount.

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Cost plus: Customer pays only for materials, not labor.

Question 2

A manufacturing company is implementing Dynamics 365 Supply Chain Management. They need to track raw material consumption and finished goods output in real time. Which module should they configure to achieve this?

Accepted Answer

Production control. Production control is the correct module because it is specifically designed to manage and track manufacturing processes, including real-time consumption of raw materials and output of finished goods through production orders, batch orders, and kanban jobs. It integrates with inventory to automatically post material consumption and finished goods receipt as production operations are reported.

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Inventory management

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Warehouse management

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Procurement and sourcing

Question 3

A company wants to automate the replenishment of raw materials to production lines based on actual consumption. Which capability in Dynamics 365 Supply Chain Management should they use?

Accepted Answer

Kanban rules. Kanban rules in Dynamics 365 Supply Chain Management are specifically designed to automate material replenishment based on actual consumption signals (e.g., from production line scans or barcode reads). They implement a pull-based system where a kanban card triggers a replenishment event only when material is consumed, aligning directly with the requirement for consumption-driven automation.

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Master planning

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Quality management

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Vendor collaboration

Question 4

A retailer uses Dynamics 365 Supply Chain Management to manage inventory across multiple stores. They need to ensure that store managers can only see inventory for their own store. What configuration should they use?

Accepted Answer

Data security policies. Data security policies in Dynamics 365 Supply Chain Management allow administrators to restrict record-level access based on user roles and context, such as limiting inventory visibility to a specific store. By configuring a data security policy that filters inventory records by the store dimension, store managers will only see data relevant to their assigned store. This is the correct approach because it enforces row-level security without customizing forms or reports.

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Product filters

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Inventory Visibility add-in

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Warehouse management parameters

Question 5

A company needs to calculate the cost of manufactured products including direct materials, labor, and overhead. Which costing methodology in Dynamics 365 Supply Chain Management should they use?

Accepted Answer

Standard costing. Standard costing is the correct methodology because it allows the company to define predetermined costs for direct materials, labor, and overhead, and then calculate variances against actual costs. In Dynamics 365 Supply Chain Management, standard costing is specifically designed for manufacturing scenarios where you need to value inventory and cost of goods sold based on expected costs, with variance tracking for deviations.

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Weighted average

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FIFO

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Moving average

Question 6

A company that produces perishable goods needs to enforce strict lot control and first-expiry-first-out (FEFO) picking. Which configuration in Dynamics 365 Supply Chain Management is essential?

Accepted Answer

Lot control and FEFO picking criteria. Enforcing strict lot control and first-expiry-first-out (FEFO) picking criteria in Dynamics 365 Supply Chain Management requires enabling lot control on the product (via tracking dimension groups) and then setting the FEFO picking criteria on the warehouse location directive. This configuration ensures that items with the nearest expiry date are picked first, which is critical for perishable goods to minimize waste and comply with regulatory requirements.

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Product dimension groups

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Batch attributes

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Serial number control

Question 7

Which THREE are key capabilities of Dynamics 365 Supply Chain Management's warehouse management module?

Accepted Answer

Cycle counting. Cycle counting (A) is a core warehouse management capability that lets you create and process cycle count work to reconcile on-hand inventory against recorded quantities without halting operations. Cluster picking (D) is a supported picking method in the warehouse management module that groups multiple order lines into a single pick cluster to reduce travel time and increase picker efficiency. License plate tracking (E) is a fundamental warehouse management feature that uses license plates (unique IDs for containers, pallets, or groupings of items) to track inventory movements and locations throughout the warehouse. Product lifecycle management (B) belongs to engineering and product information management rather than warehouse execution, and service agreements (C) are part of the Field Service/service management domain, so neither is a warehouse management module capability.

Answer

Product lifecycle management

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Service agreements

Question 8

Which TWO are examples of production order statuses in Dynamics 365 Supply Chain Management?

Accepted Answer

Released. In Dynamics 365 Supply Chain Management, a production order progresses through defined statuses such as Created, Estimated, Scheduled, Released, Started, Reported as finished, and Ended. Option B (Released) is correct because releasing a production order is a distinct status that makes the order available for shop floor execution and journal postings. Option D (Reported as finished) is correct because it is the status reached when the finished quantity is declared via the report-as-finished journal, moving the order toward completion. Option A (Reserved) is not a production order status; reservation is an inventory transaction concept applied to on-hand stock. Option C (Picked) is not a production order status; picking relates to warehouse work and output/input picking processes. Option E (Invoiced) is not a production order status; invoicing applies to sales orders and purchase orders, not production orders.

Answer

Reserved

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Picked

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Invoiced

Question 9

A warehouse manager queries the on-hand inventory for item L0101 and receives the JSON output above:

```json
{
  "ItemId": "L0101",
  "OnHandQuantity": 700,
  "PhysicallyReserved": 400,
  "AvailablePhysical": 300
}
```

Currently, how many units of item L0101 are available to be picked for new orders?

Accepted Answer

300. The on-hand inventory for item L0101 is 700 units, but 400 units are physically reserved for existing orders. The available-to-pick quantity is the on-hand total minus physically reserved inventory, which equals 300 units. This is confirmed by the 'AvailablePhysical' field in the JSON output, which directly represents the quantity available to be picked for new orders in Dynamics 365 Supply Chain Management.

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500

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200

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700

Question 10

A manufacturing company uses Dynamics 365 Supply Chain Management. The warehouse manager notices that a critical raw material is frequently out of stock, causing production delays. The planner wants to ensure that the material is reordered before stock hits zero. Which inventory planning feature should be configured to automatically generate replenishment orders based on forecasted demand and current inventory levels?

Accepted Answer

Master planning. Master planning in Dynamics 365 Supply Chain Management is the correct feature because it uses forecasted demand, current inventory levels, and lead times to automatically generate replenishment orders (purchase orders or transfer orders) before stock hits zero. This prevents stockouts by planning net requirements and creating planned orders that can be firmed into actual orders.

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Inventory adjustment journal

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Cycle counting

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Quality order

Question 11

A distribution company uses Dynamics 365 Supply Chain Management. They want to improve picking efficiency in the warehouse by grouping multiple orders into a single pick run. Which warehouse process should they configure?

Accepted Answer

Wave processing. Wave processing in Dynamics 365 Supply Chain Management is the correct warehouse process for grouping multiple orders into a single pick run. It allows you to create waves that consolidate multiple sales orders or transfer orders based on criteria such as warehouse, shipping method, or inventory availability, and then release them together for efficient picking.

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Batch balancing

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Inbound shipment management

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Load planning

Question 12

A company uses Dynamics 365 Supply Chain Management. They need to track a batch of raw material from receipt to finished goods shipment for quality compliance. Which supply chain process should they use?

Accepted Answer

Batch tracking. Batch tracking in Dynamics 365 Supply Chain Management enables the assignment of unique batch numbers to raw materials and finished goods, allowing the system to trace the material from receipt through production to shipment. This process is essential for quality compliance, as it supports recall management, expiry date monitoring, and detailed genealogy reports that track the entire lifecycle of a batch.

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Transfer orders

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Consignment inventory

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Inventory counting

Question 13

A company uses Dynamics 365 Supply Chain Management. They want to use AI to predict when a critical machine is likely to fail so that maintenance can be scheduled proactively. Which module should they configure?

Accepted Answer

Asset Management. Asset Management in Dynamics 365 Supply Chain Management is the module designed for managing physical assets, including maintenance planning, work orders, and predictive maintenance. It integrates with IoT and AI capabilities to predict equipment failures and schedule proactive maintenance, which directly matches the requirement to predict critical machine failure. Production control, warehouse management, and transportation management do not provide asset failure prediction or maintenance scheduling.

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Warehouse management

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Transportation management

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Production control

Question 14

A retail company uses Dynamics 365 Supply Chain Management to manage inventory across multiple stores. They want to ensure that stock levels at stores are automatically replenished from the central warehouse when inventory drops below a defined threshold. Which planning method should they configure?

Accepted Answer

Replenishment (min/max). Replenishment (min/max) is the correct planning method because it automatically triggers replenishment orders from the central warehouse when inventory at a store falls below a defined minimum threshold, and it stops when stock reaches the maximum level. This method is specifically designed for location-based inventory replenishment in Dynamics 365 Supply Chain Management, ensuring that stores maintain optimal stock without manual intervention.

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Inventory aging

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Demand forecasting

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Safety stock

Question 15

A manufacturing company uses Dynamics 365 Supply Chain Management. Which THREE components are required to set up a production process for a discrete manufacturing scenario?

Accepted Answer

Bill of materials. In Dynamics 365 Supply Chain Management, a discrete manufacturing production process requires a Bill of Materials (B) to define the components and quantities of raw materials needed to produce the finished item, a Production order (C) to authorize and track the manufacturing of a specific quantity of an item on a given date, and a Route (D) to specify the sequence of operations, work centers, and resource requirements needed to manufacture the item. These three components together form the core setup for discrete manufacturing: the BOM defines what materials are consumed, the route defines how the item is produced, and the production order drives the actual execution. Kanban rules (A) are used for lean manufacturing scenarios, not discrete manufacturing, and a costing sheet (E) is used for indirect cost calculation and overhead absorption rather than being a required component for setting up a discrete production process.

Answer

Kanban rules

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Costing sheet