MB-920 Describe Dynamics 365 Supply Chain Management Practice Test 14 — 15 Questions

Question 1

A logistics company wants to use Dynamics 365 Supply Chain Management to track transportation costs and optimize routing. Which module should they implement?

Accepted Answer

Transportation management. Transportation management in Dynamics 365 Supply Chain Management handles freight, routing, and cost optimization. Option A (Sales and marketing) is wrong because it focuses on customer orders and sales processes, not transportation costs. Option C (Warehouse management) is wrong because it deals with inbound/outbound warehouse operations, not transportation. Option D (Procurement and sourcing) is wrong because it manages purchasing and supplier relationships, not transportation.

Answer

Sales and marketing

Answer

Warehouse management

Answer

Procurement and sourcing

Question 2

A company using Dynamics 365 Supply Chain Management notices that inventory accuracy is low due to manual data entry errors. Which feature can help automate data capture and improve accuracy?

Accepted Answer

Warehouse mobile devices. Warehouse mobile devices allow barcode scanning to automate data entry, reducing manual errors and improving inventory accuracy. Option B is wrong because Quality management is used for inspections, not automated data capture. Option C is wrong because Inventory counting is a manual process that does not inherently automate data capture. Option D is wrong because Vendor collaboration involves external communication, not automated data capture.

Answer

Quality management

Answer

Inventory counting

Answer

Vendor collaboration

Question 3

A manufacturer wants to implement a pull-based production system where work cells signal upstream processes when they need more parts. Which Dynamics 365 Supply Chain Management feature should they use?

Accepted Answer

Kanban boards. Kanban boards in Dynamics 365 Supply Chain Management enable a pull-based production system where downstream work cells signal upstream processes when they need more parts, aligning with lean manufacturing principles. Option A (Production orders) is incorrect because they are typically used in push-based discrete manufacturing. Option B (Master planning) is incorrect as it is a push-based planning approach. Option C (Batch orders) is incorrect because they are designed for process manufacturing, not pull signaling.

Answer

Production orders

Answer

Master planning

Answer

Batch orders

Question 4

A retail company uses Dynamics 365 Supply Chain Management and wants to ensure that products are available at the right locations to meet customer demand without overstocking. Which planning method should they use?

Accepted Answer

Replenishment planning. Replenishment planning optimizes stock levels across locations based on demand, ensuring products are available without overstocking. Option A is wrong because Intercompany planning handles transactions between legal entities, not inventory availability. Option B is wrong because Capacity planning focuses on resource utilization, not stock levels. Option D is wrong because Product lifecycle management manages product stages from introduction to discontinuation, not day-to-day replenishment.

Answer

Intercompany planning

Answer

Capacity planning

Answer

Product lifecycle management

Question 5

Which TWO features in Dynamics 365 Supply Chain Management are used to manage and track inventory in a warehouse?

Accepted Answer

Location directives. The correct answers are B (Location directives) and E (Inventory status). Location directives help determine the precise location for picking or putting items in a warehouse. Inventory status allows tracking the availability and condition of inventory (e.g., available, reserved, quarantined). Option A (Kanban) is used for lean manufacturing signals, not inventory tracking. Option C (Route planning) is for transportation management. Option D (Product configuration) deals with configurable product variants, not warehouse inventory management.

Answer

Kanban

Answer

Route planning

Answer

Product configuration

Question 6

Which THREE modules are part of Dynamics 365 Supply Chain Management?

Accepted Answer

Master planning. The three modules that are part of Dynamics 365 Supply Chain Management are Master planning (A), Transportation management (D), and Warehouse management (E). Option B (Project management) is part of Dynamics 365 Project Operations, not Supply Chain Management. Option C (Human resources) is part of Dynamics 365 Human Resources.

Answer

Project management

Answer

Human resources

Question 7

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

Accepted Answer

Nonconformance management. Options A and D are correct. Quality management (D) is used to define quality standards, trigger inspections, and create quality orders. Nonconformance management (A) handles defects, nonconformances, and corrective actions. Option B (Inventory counting) is for stock counts, not quality control. Option C (Product configuration) is for configurable products. Option E (Vendor collaboration) is for supplier communication.

Answer

Inventory counting

Answer

Product configuration

Answer

Vendor collaboration

Question 8

Refer to the exhibit. A company has configured the product F0001 with the storage dimension group 'SiteWarehouse' and tracking dimension group 'BatchSerial'. What does this configuration allow?

Accepted Answer

Both batch and serial number tracking. The tracking dimension group 'BatchSerial' enables both batch and serial number tracking. Option B is wrong because 'BatchSerial' includes both, not just batch. Option C is wrong because it enables both, not just serial. Option D is wrong because the storage dimension group 'SiteWarehouse' only manages storage dimensions (site and warehouse), not tracking.

Answer

Only batch number tracking

Answer

Only serial number tracking

Answer

Only warehouse and site tracking

Question 9

Refer to the exhibit. A company uses demand forecasting with ARIMA method and a historical horizon of 12 months. What is the primary advantage of using ARIMA for forecasting?

Accepted Answer

It models trends and seasonality in time series data. ARIMA (AutoRegressive Integrated Moving Average) is a statistical time series forecasting method that models trends and seasonality in historical data. Option A is wrong because machine learning pattern recognition is not inherent to ARIMA; ARIMA is a statistical method, not a machine learning algorithm. Option B is wrong because ARIMA does not inherently allow real-time forecast updates; it relies on historical data and requires model refitting. Option D is wrong because ARIMA does not incorporate external factors like weather; it only uses the past values of the time series itself.

Answer

It uses machine learning for pattern recognition

Answer

It allows real-time forecast updates

Answer

It incorporates external factors like weather

Question 10

Refer to the exhibit. A warehouse location is configured with LocationProfileId 'BULK' and MaxPalletWeight 1000. What is the primary purpose of this configuration?

Accepted Answer

To define physical constraints like weight capacity. The location profile defines the physical characteristics and constraints of a warehouse location, such as maximum weight capacity (MaxPalletWeight). Option A is wrong because location profiles do not specify warehouse zones; zones are defined separately. Option B is wrong because location profiles are not used for defining picking route sequences; those are determined by wave templates and work templates. Option D is wrong because while location profiles can influence item restrictions indirectly (e.g., through storage constraints), their primary purpose is to define physical attributes like weight and dimensions, not to directly restrict item types.

Answer

To specify the warehouse zone

Answer

To define the picking route sequence

Answer

To restrict the types of items stored

Question 11

A manufacturing company uses Dynamics 365 Supply Chain Management. They want to optimize inventory levels by using a replenishment strategy that maintains a constant stock level based on forecast demand. Which replenishment method should they use?

Accepted Answer

Min/Max replenishment. Min/Max replenishment, because it maintains inventory levels between a minimum and maximum quantity based on forecast demand, ensuring a constant stock level. Option A, Vendor-managed inventory, is incorrect because it involves the supplier managing stock, not maintaining a constant level. Option B, Economic Order Quantity (EOQ), is incorrect as it calculates optimal order quantities to minimize total costs, not to maintain a constant level. Option C, Kanban, is a pull-based method triggered by actual consumption, not forecast demand.

Answer

Vendor-managed inventory

Answer

Economic Order Quantity (EOQ)

Answer

Kanban

Question 12

A company uses Dynamics 365 Supply Chain Management to manage its warehouse operations. They want to implement a strategy where workers are guided through tasks using scanning devices. Which feature should they configure?

Accepted Answer

Warehouse mobile app. The Warehouse mobile app provides guided task execution via scanning devices. Option A is incorrect because Inventory management is a broader module, not the specific feature for guided scanning. Option B is incorrect because Warehouse management is the overarching module, not the feature itself. Option C is incorrect because RF scanning is a device type or capability within the app, but the feature that implements guided scanning is the Warehouse mobile app.

Answer

Inventory management

Answer

Warehouse management

Answer

RF scanning

Question 13

A global manufacturer uses Dynamics 365 Supply Chain Management. They need to configure a process that automatically generates purchase orders when inventory drops below a predefined level, based on real-time demand. Which feature should they use?

Accepted Answer

Reorder point planning. Reorder point planning creates purchase orders when stock hits a reorder point. Option A is incorrect because Vendor collaboration is for communication with suppliers, not for generating orders. Option B is incorrect because Master planning covers broader supply and demand planning, but reorder point planning is the specific feature for automated reordering based on predefined levels. Option C is incorrect because Demand forecasting predicts future demand but does not automatically generate purchase orders.

Answer

Vendor collaboration

Answer

Master planning

Answer

Demand forecasting

Question 14

A company is implementing Dynamics 365 Supply Chain Management to improve warehouse efficiency. Which TWO features are part of warehouse management?

Accepted Answer

Wave management. Wave management (A) and cycle counting (B) are core warehouse management features in Dynamics 365 Supply Chain Management. Option C (Transportation management) is part of the Transportation management module, not warehouse management. Option D (Procurement and sourcing) belongs to the Procurement and sourcing module. Option E (Production control) is part of the Production control module for manufacturing.

Answer

Transportation management

Answer

Procurement and sourcing

Answer

Production control

Question 15

A manufacturer uses Dynamics 365 Supply Chain Management. They want to implement a production flow that supports lean manufacturing. Which THREE features should they consider?

Accepted Answer

Production flows. Options A, B, and D are correct because Kanban boards, production flows, and activity-based costing are key lean manufacturing features. Option C is incorrect because batch orders are for process manufacturing, not lean. Option E is incorrect because discrete manufacturing is a process type.

Answer

Batch orders

Answer

Discrete manufacturing