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

Question 1

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.. 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 2

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. 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 3

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.. An approved supplier list (ASL) restricts which suppliers can be used for a specific item; if a supplier is not on the list, procurement cannot proceed. Option B is wrong because configuring a procurement category and assigning a supplier does not enforce exclusivity—it only associates the supplier with that category. Option C is wrong because a purchase agreement is a contract for pricing or terms but does not prevent using other suppliers for the item. Option D is wrong because setting the supplier as the default vendor on the item's vendor setup only determines the default, not an exclusive requirement.

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.

Question 4

A company wants to use Dynamics 365 Supply Chain Management to manage product versions and engineering changes. Which module should they use?

Accepted Answer

Engineering Change Management. Engineering Change Management is the correct module because it is specifically designed to manage product versions, engineering changes, and the associated approval workflows in Dynamics 365 Supply Chain Management. It provides controlled revision control, bill of materials (BOM) versioning, and route versioning, enabling companies to track and implement changes from engineering through production.

Answer

Inventory management

Answer

Product information management

Answer

Procurement and sourcing

Question 5

A company uses Dynamics 365 Supply Chain Management and wants to optimize logistics costs by consolidating shipments from multiple orders to the same customer. Which feature should they use?

Accepted Answer

Transportation management. The Transportation management module allows shipment consolidation based on rules like same customer, delivery address, or route. Option B is wrong because the Warehouse management module handles internal warehouse operations. Option C is wrong because the Sales and marketing module manages sales orders, not logistics optimization. Option D is wrong because the Master planning module calculates supply requirements, not shipment consolidation.

Answer

Warehouse management

Answer

Sales and marketing

Answer

Master planning

Question 6

Which TWO of the following are required to use the Planning Optimization add-in in Dynamics 365 Supply Chain Management?

Accepted Answer

An active Dynamics 365 subscription with appropriate license.. Options C and D are correct. Planning Optimization requires the add-in to be installed and enabled (D) and an active Dynamics 365 subscription with appropriate license (C). Option A is incorrect because Azure Machine Learning workspace is not required. Option B is incorrect because the Demand forecasting feature is optional and not a prerequisite. Option E is incorrect because Power BI integration is not required.

Answer

Azure Machine Learning workspace must be configured.

Answer

Demand forecasting feature must be enabled.

Answer

Power BI integration must be configured.

Question 7

Which THREE of the following are capabilities of the Warehouse management module in Dynamics 365 Supply Chain Management?

Accepted Answer

License plate tracking. Options A, C, and E are correct. Warehouse management includes license plate tracking, inbound and outbound operation management, and wave processing for picking and packing. Option B is wrong because route planning is part of Transportation management. Option D is wrong because demand forecasting is part of Master planning or separate features.

Answer

Route planning for inbound and outbound shipments

Answer

Demand forecasting using machine learning

Question 8

Which TWO of the following are prerequisites for using quality management in Dynamics 365 Supply Chain Management?

Accepted Answer

Item sampling must be configured.. Options B and D are correct. To use quality management in Dynamics 365 Supply Chain Management, inventory management must be enabled (option D) and item sampling must be configured (option B). Option A is incorrect because the quality management functionality is included in the base module; no separate add-in purchase is required. Option C is incorrect because warehouse management is not a prerequisite for quality management. Option E is incorrect because the quality management module is part of the standard Supply Chain Management, not an add-in that needs to be installed.

Answer

Quality management add-in must be purchased separately.

Answer

Warehouse management must be enabled.

Answer

Quality management module must be installed as an add-in.

Question 9

A company has configured the Planning Optimization add-in as shown. A planner manually firms a planned order for a component that has a lead time of 25 days. The order's requirement date is 45 days from now. What will happen during the next master planning run?

Accepted Answer

The order will remain firm and no action will be taken.. The planner manually firmed the planned order. Once a planned order is firmed manually, it becomes a firm planned order and will not be affected by subsequent master planning runs. The Planning Optimization add-in respects manual firming regardless of the time fence settings. Therefore, during the next master planning run, the order will remain firm and no action will be taken. Option A is incorrect because the order is already firmed, so no action message will be generated to reschedule it. Option B is incorrect because the order is outside the 30-day auto-firming time fence, but it was manually firmed, so this is irrelevant. Option C is incorrect because a manually firmed order will not be unfirmed during master planning.

Answer

An action message will be generated to reschedule the order.

Answer

The order will be automatically firmed because it is within the time fence.

Answer

The order will be unfirmed and a new planned order created.

Question 10

A warehouse manager configures a location profile as shown. A mobile device user attempts to put away a pallet of item A into location BULK-001. The system rejects the putaway. What is the most likely reason?

Accepted Answer

The reservation hierarchy does not allow putaway to a bulk location.. The reservation hierarchy is set to a level that does not allow putaway into a bulk location. In Dynamics 365 Supply Chain Management, location profiles control how inventory is stored and moved. If the reservation hierarchy is configured at a level higher than location (e.g., Site or Warehouse), a bulk location may not accept putaway unless it is specifically configured to allow it. Option A is incorrect because the location type 'Bulk' is valid for putaway; bulk locations are commonly used for storage. Option B is incorrect because a default location is not required for putaway; the system uses the location profile settings. Option D is incorrect because if the warehouse management process were disabled, the system would not allow any warehouse transactions at all, not just putaway rejections.

Answer

The location type 'Bulk' is not valid for putaway.

Answer

The default location is not set to BULK-001.

Answer

The warehouse management process is disabled.

Question 11

A manufacturing company is implementing Dynamics 365 Supply Chain Management. They want to ensure that raw material inventory is automatically replenished when stock falls below a predefined level. Which feature should they configure?

Accepted Answer

Reorder point planning. Reorder point planning in Dynamics 365 Supply Chain Management automatically triggers replenishment when inventory drops below a predefined reorder point. Option A (Quality management) is incorrect because it is used for inspections and quality control, not for inventory replenishment. Option B (ABC classification) is incorrect because it is used to categorize items based on value and importance, not to trigger replenishment. Option D (Vendor collaboration) is incorrect because it facilitates communication with vendors but does not automatically replenish inventory.

Answer

Quality management

Answer

ABC classification

Answer

Vendor collaboration

Question 12

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?

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

Accepted Answer

Serial number tracking. (Serial number tracking) is correct because it provides unique identification for each individual item from raw material to finished good. Option A (Batch tracking) is wrong because it tracks groups of items with common attributes, not individual unique items. Option C (Product configuration) is wrong because it deals with configuring product variants based on attributes, not traceability. Option D (Catch weight) is wrong because it handles variable-weight items, not unique identification.

Answer

Batch tracking

Answer

Product configuration

Answer

Catch weight

Question 13

A distribution company uses Dynamics 365 Supply Chain Management and needs to optimize warehouse operations by grouping items that are frequently shipped together. Which warehouse concept should they apply?

Accepted Answer

Wave processing. Wave processing is the correct answer because it allows grouping of shipments into waves based on criteria such as common customer, route, or delivery date, which optimizes picking and shipping in warehouse operations. Cross-docking is a process where inbound goods are directly transferred to outbound trucks without storage, not for grouping frequently shipped items. Cluster picking is a picking method where items for multiple orders are picked in a single pass, but it does not involve grouping items based on being frequently shipped together. Kanban is a lean manufacturing method used for signaling replenishment, not for warehouse grouping.

Answer

Cross-docking

Answer

Cluster picking

Answer

Kanban

Question 14

A manufacturer uses Dynamics 365 Supply Chain Management and wants to improve demand forecasting accuracy by incorporating external data such as weather and economic indicators. Which module should they use?

Accepted Answer

Demand forecasting. Demand forecasting in Dynamics 365 Supply Chain Management is designed to integrate with external data sources like weather and economic indicators to improve forecast accuracy. Option A is wrong because Master planning focuses on production and procurement scheduling, not forecasting. Option B is wrong because Product information management handles product master data. Option C is wrong because Inventory management manages stock levels and transactions.

Answer

Master planning

Answer

Product information management

Answer

Inventory management

Question 15

A company is evaluating Dynamics 365 Supply Chain Management for its complex manufacturing process that involves both discrete and process manufacturing. Which capability should they use to handle the co-products and by-products generated during production?

Accepted Answer

Process manufacturing. Process manufacturing in Dynamics 365 Supply Chain Management supports co-products and by-products. Option A (Lean manufacturing) is wrong because it focuses on waste reduction and flow, not managing co/by-products. Option B (Product configuration) is wrong because it deals with configurable product variants, not co/by-products. Option C (Discrete manufacturing) is wrong because it handles assemblies and discrete items, not continuous processes with co/by-products.

Answer

Lean manufacturing

Answer

Product configuration

Answer

Discrete manufacturing