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

Question 1

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. Option D is correct because the warehouse mobile app is the interface for handheld scanners. Option A is wrong because the production floor execution interface is for manufacturing. Option B is wrong because Power Apps is not the native solution. Option C is wrong because mobile device menu items are part of the app configuration, but the app itself is required.

Answer

Power Apps mobile app

Answer

Production floor execution interface

Answer

Mobile device menu items

Question 2

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.. Option A is correct because location directives with a 'FEFO' strategy prioritize picking lots with earliest expiry dates. Option B is wrong because reservation hierarchies affect reservation, not picking order. Option C is wrong because batch attributes are for quality, not expiry. Option D is wrong because warehouse parameters include general settings, not FEFO strategy.

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 3

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

Accepted Answer

Nonconformance management. Options A and B are correct because quality control (quality orders) and nonconformance management are the two primary features for managing quality. Option C is wrong because vendor collaboration is for communication. Option D is wrong because inventory status is for availability. Option E is wrong because batch balancing is for process manufacturing.

Answer

Vendor collaboration

Answer

Batch balancing

Answer

Inventory status

Question 4

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 C are correct. Location profiles define location characteristics; work templates define work types; location directives determine pick/put locations. Option D is wrong because BOM versions are for product structure. Option E is wrong because costing methods are for inventory valuation.

Answer

BOM versions

Answer

Costing methods

Question 5

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

Accepted Answer

Net change. Options A and B are correct. Regenerative and net change are the two master planning methods. Option C is wrong because coverage planning is a type, not a method. Option D is wrong because intercompany planning is a scenario. Option E is wrong because demand planning is a separate module.

Answer

Coverage planning

Answer

Intercompany planning

Answer

Demand planning

Question 6

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.. Option B is correct because the error indicates insufficient inventory, so manually adjusting inventory ensures availability. Option A is wrong because changing recurrence does not fix the root cause. Option C is wrong because the job is not ended. Option D is wrong because the error is not about batch job configuration.

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 7

Refer to the exhibit. A warehouse uses location directives for sales picking with FEFO strategy. Workers are unable to pick from bulk locations even though there is stock. What is the most likely cause?

Accepted Answer

The location profile 'BULK' is not set to allow picking.. Option A is correct because the location directive only includes 'BULK' and 'PICK' profiles, but if the location profile is not assigned to any location, it will not be used. However, the exhibit shows both profiles, so the issue is likely that the 'BULK' locations have been assigned a profile that does not match. Actually, the more likely cause is that the 'BULK' location profile is not set up for picking or the location directive sequence is incorrect. But among options, Option A is the most plausible: the location profile 'BULK' might not be set to allow picking. Option B is wrong because FEFO works with expiry dates. Option C is wrong because the directive includes both profiles. Option D is wrong because the strategy is FEFO, not FIFO.

Answer

The items do not have expiration dates set.

Answer

The location directive is missing a line for the 'PICK' profile.

Answer

The strategy should be FIFO instead of FEFO.

Question 8

Refer to the exhibit. A master plan has generated a planned purchase order for 100 units of item A0001 with status 'Approved'. What does the 'Approved' status indicate?

Accepted Answer

The order has been reviewed and confirmed by a planner.. Option B is correct because planned orders with 'Approved' status have been firmed and can be processed. Option A is wrong because 'Approved' means it has been reviewed. Option C is wrong because planned orders are not yet firmed automatically. Option D is wrong because 'Approved' does not mean it has been fully processed.

Answer

The order has been automatically created and is waiting for review.

Answer

The order has been fully processed and completed.

Answer

The order has been firmed and is ready to be released.

Question 9

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.. Option C is correct because forecast profiles define how historical data is used to generate forecasts; if the profile uses too short a historical period or inappropriate model, forecasts will be inaccurate. Option A is wrong because coverage groups affect replenishment, not forecast accuracy. Option B is wrong because inventory statuses affect availability, not forecast generation. Option D is wrong because item models determine costing, 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 10

A company wants to track inventory in multiple warehouses using serial numbers. In Dynamics 365 Supply Chain Management, what must be configured on the item to enable mandatory serial number tracking?

Accepted Answer

Set the tracking dimension group to include serial numbers and mark them as 'Active' and 'Mandatory'.. Option A is correct because the tracking dimension group defines which dimensions (like serial number) are active and mandatory. Option B is wrong because storage dimension group controls site, warehouse, etc., not serial numbers. Option C is wrong because inventory model group controls costing and inventory policies. Option D is wrong because coverage group controls replenishment.

Answer

Set the inventory model group to include serial numbers.

Answer

Set the storage dimension group to include serial numbers.

Answer

Set the coverage group to include serial numbers.

Question 11

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. Option B is correct because the Demand Forecasting feature uses machine learning to predict demand and can be used for replenishment suggestions. Option A is wrong because the Planning Optimization add-in improves master planning performance but doesn't provide AI-based demand prediction. Option C is wrong because the Warehouse management module manages warehouse operations. Option D 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 12

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

Safety stock. Option B is correct because safety stock is a minimum inventory level that triggers replenishment; master planning can generate purchase orders when inventory falls below this level. Option A is wrong because reorder point is used in distribution requirements planning but not directly in master planning for automatic PO creation. Option C is wrong because a coverage group can include settings for min/max, but the specific concept is safety stock. Option D is wrong because the forecast model is for demand forecasting, not replenishment.

Answer

Coverage group

Answer

Forecast model

Answer

Reorder point

Question 13

A company uses Dynamics 365 Supply Chain Management and wants to ensure that raw materials are inspected before being put away. Which warehouse management configuration should be used?

Accepted Answer

Set up a quality order that is automatically generated upon receipt.. Option C is correct because a quality order can be automatically generated upon receipt to enforce inspection before putaway. Option A is wrong because putaway work is created after inspection; it doesn't enforce inspection. Option B is wrong because location directives guide where to put items, not inspection. Option D is wrong because mobile device menu items are used for scanning, not configuration of inspection.

Answer

Create a putaway work template that requires inspection.

Answer

Configure location directives to direct items to a quarantine location.

Answer

Configure a mobile device menu item for inspection.

Question 14

A manufacturer uses Dynamics 365 Supply Chain Management. They produce items using a bill of materials (BOM) and want to automatically consume raw materials when production is reported as finished. Which production parameter should be set?

Accepted Answer

Auto BOM consumption. Option B is correct because the 'Auto BOM consumption' parameter determines whether materials are automatically consumed when a production order is reported as finished. Option A is wrong because 'Auto report as finished' controls automatic reporting, not material consumption. Option C is wrong because 'Auto start production order' controls starting, not consumption. Option D is wrong because 'Auto generate picking work' creates pick work, not consumption.

Answer

Auto report as finished

Answer

Auto start production order

Answer

Auto generate picking work

Question 15

A company uses Dynamics 365 Supply Chain Management and wants to implement a policy where a specific supplier must be used for a particular item. Which configuration enforces this?

Accepted Answer

Add the supplier to the approved supplier list for the item.. Option C is correct because an approved supplier list (ASL) restricts which suppliers can be used for an item; if a supplier is not on the list, procurement cannot proceed. Option A is wrong because a purchase agreement is a contract but does not enforce supplier exclusivity. Option B is wrong because a vendor account is just a record. Option D is wrong because a procurement category is a grouping, not a restriction.

Answer

Configure a procurement category and assign the supplier.

Answer

Create a purchase agreement with that supplier.

Answer

Set the supplier as the default vendor on the item's vendor setup.