MB-920 Describe Dynamics 365 Supply Chain Management Practice Test 13 — 15 Questions

Question 1

A furniture manufacturer uses Dynamics 365 Supply Chain Management. They need to ensure that raw materials are replenished automatically when inventory falls below a certain level. Which feature should be configured?

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

Accepted Answer

Reorder point. The reorder point feature in Dynamics 365 Supply Chain Management triggers automatic replenishment when inventory levels drop to a predefined threshold. This ensures raw materials are reordered without manual intervention, directly addressing the requirement for automatic replenishment when inventory falls below a certain level.

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Vendor collaboration

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Safety stock

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Master planning

Question 2

A retail company wants to track the cost of goods sold using a method that assumes the most recently purchased items are sold first. Which costing method should they configure?

Accepted Answer

LIFO. D is correct because LIFO (Last In, First Out) assumes the most recently purchased items are sold first, which matches the company's requirement to track cost of goods sold using that assumption. In Dynamics 365 Supply Chain Management, LIFO is an inventory costing method that can be configured in the item model group to calculate the cost of goods sold based on the cost of the latest received inventory.

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Standard cost

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FIFO

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Weighted average

Question 3

A manufacturer needs to define the sequence of operations and work centers for producing a finished good. Which supply chain entity should they configure?

Accepted Answer

Route. In Dynamics 365 Supply Chain Management, a Route defines the sequence of operations and the specific work centers (or resources) required to produce a finished good. It links each operation step to a resource or resource group, establishing the production flow and timing. Configuring a Route is the correct entity for specifying the order of operations and work centers, as it directly models the manufacturing process.

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Resource

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Production order

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Bill of materials

Question 4

A company uses Dynamics 365 Supply Chain Management and wants to automate the creation of purchase orders based on demand from sales orders. Which feature should they use?

Accepted Answer

Master planning. Master planning in Dynamics 365 Supply Chain Management uses demand from sales orders to generate planned purchase orders, ensuring inventory levels meet requirements. It performs net requirements calculations, considering existing stock, lead times, and order quantities, to automate procurement suggestions. This directly addresses the need to create purchase orders based on sales order demand.

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Purchase requisition

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Consignment inventory

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Vendor collaboration

Question 5

A warehouse manager wants to assign workers to specific zones and track their performance. Which warehouse management feature should be used?

Accepted Answer

Labor management. Labor management in Dynamics 365 Supply Chain Management is specifically designed to assign workers to zones and track their performance, including metrics like productivity and efficiency. This feature enables warehouse managers to define labor standards, monitor worker activities, and generate performance reports, directly addressing the scenario's requirements.

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Location directives

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Work templates

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Mobile device menu items

Question 6

A company needs to ensure that when a sales order is created, the system automatically checks if the customer's credit limit is sufficient. If not, the order should be placed on hold. Which setup is required?

Accepted Answer

Credit management. Credit management in Dynamics 365 Supply Chain Management is the dedicated module that enforces credit limits during sales order processing. When a sales order is created, the system evaluates the customer's credit limit against the order total; if the limit is exceeded, the order is automatically placed on hold. This behavior is controlled by credit limit rules and blocking configurations within the Credit management module.

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Accounts receivable parameters

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Collections management

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Customer payment settlement

Question 7

A production supervisor needs to see which production orders are currently running and their status. Which workspace should they use?

Accepted Answer

Production floor management workspace. The Production floor management workspace is specifically designed for production supervisors to monitor and manage production orders in real time. It provides a consolidated view of all production orders, their current status (e.g., started, reported as finished), and key performance indicators, enabling immediate action on the shop floor.

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Procurement and sourcing workspace

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Cost management workspace

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Warehouse management workspace

Question 8

Which TWO are valid warehouse management processes in Dynamics 365 Supply Chain Management?

Accepted Answer

Receiving and putaway. In Dynamics 365 Supply Chain Management, warehouse management processes are the inbound and outbound workflows executed within the warehouse, and receiving and putaway (option C) is the core inbound process where goods are received against a load, license plate, or work order and then directed to storage locations via putaway work. Picking and shipping (option E) is the corresponding outbound process, where pick work is generated for sales orders or transfer orders and the goods are packed and shipped through the outbound dock. Purchase order creation (option A) is a procurement/procurement-and-sourcing activity, not a warehouse execution process, and it occurs before any warehouse work is generated. Production scheduling (option B) belongs to master planning and production control, since it plans and sequences production orders rather than executing warehouse movements. Invoice matching (option D) is an accounts payable/procurement task (two-way or three-way matching of invoice, PO, and receipt), not a warehouse management process.

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Purchase order creation

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Production scheduling

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Invoice matching

Question 9

A manufacturing company uses Dynamics 365 Supply Chain Management. The production planner notices that a planned production order for 1,000 units of finished good FG-100 has a material shortage for component RM-200. The planner wants to automatically create purchase orders for the missing component and reschedule the production order. Which feature should be configured?

Accepted Answer

Master planning. Master planning in Dynamics 365 Supply Chain Management is the feature that automatically generates planned purchase orders for material shortages and reschedules production orders based on demand and supply. Option B is correct because master planning runs net requirements calculations to create the necessary purchase orders for missing components like RM-200 and adjusts the production schedule for FG-100. This ensures material availability aligns with production timelines.

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Warehouse management

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Product configuration

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Inventory management

Question 10

A company uses Dynamics 365 Supply Chain Management and wants to implement a quality check process for incoming raw materials. The quality inspector must receive a notification when a purchase order receipt is registered, and the system must block the inventory until the inspection is passed. Which module should be configured?

Accepted Answer

Quality management. The Quality management module in Dynamics 365 Supply Chain Management is specifically designed to handle quality inspections, including the ability to automatically generate quality orders upon purchase order receipt. It can block inventory transactions (e.g., put-away or consumption) until the inspection passes, and trigger notifications to quality inspectors via workflows or alerts.

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Production control

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Warehouse management

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Inventory management

Question 11

A company uses Dynamics 365 Supply Chain Management and wants to improve demand forecasting by including external data such as weather patterns and economic indicators. Which feature should be used?

Accepted Answer

Demand forecasting with Azure Machine Learning. Demand forecasting in Dynamics 365 Supply Chain Management is designed to extend beyond internal historical data by integrating external signals. The Azure Machine Learning-powered demand forecasting feature allows companies to blend internal sales history with external datasets such as weather patterns, economic indicators, and social trends to produce more accurate predictions. This is the only option that natively supports external data ingestion for forecasting purposes.

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Sales and marketing forecasting

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Master planning

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Supply planning

Question 12

A company uses Dynamics 365 Supply Chain Management and needs to track the cost of raw materials as they move through production. The company uses standard cost methodology. Which module should be used to view the cost breakdown of a finished good?

Accepted Answer

Cost management. Cost management is the correct module because it provides cost breakdowns, cost roll-ups, and variance analysis for finished goods under standard cost methodology. It tracks raw material costs as they flow through production and shows the standard versus actual cost components of a manufactured item.

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Product information management

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Production control

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Inventory management

Question 13

A warehouse manager wants to optimize picking routes by grouping orders that are located in the same aisle. Which feature in Dynamics 365 Supply Chain Management should be configured?

Accepted Answer

Wave management. Wave management in Dynamics 365 Supply Chain Management is the correct feature because it allows grouping of orders into waves based on criteria such as location or aisle, enabling optimized picking routes. By configuring wave templates and methods, the system can automatically consolidate orders from the same aisle into a single wave, reducing travel time and improving warehouse efficiency.

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Inventory status

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Location directives

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Mobile device menu items

Question 14

A company using Dynamics 365 Supply Chain Management wants to implement vendor collaboration so that suppliers can view purchase orders and confirm delivery dates. Which feature should be set up?

Accepted Answer

Vendor collaboration. Vendor collaboration is the dedicated feature in Dynamics 365 Supply Chain Management that allows external suppliers to access a portal where they can view purchase orders, confirm delivery dates, and update order status. This feature is specifically designed to enable secure, real-time collaboration between buyers and vendors without requiring the supplier to have a full Dynamics 365 license.

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Inventory management

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Procurement and sourcing

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Accounts payable

Question 15

A production manager needs to see the real-time status of all production orders on the shop floor. Which workspace in Dynamics 365 Supply Chain Management should be used?

Accepted Answer

Production floor management. The Production floor management workspace is specifically designed to provide production managers with a real-time, aggregated view of all production orders and their status on the shop floor. It includes key performance indicators, job statuses, and actionable insights for managing production operations directly from a single dashboard.

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Master planning

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Warehouse management

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Inventory management