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

Question 1

A company uses Dynamics 365 Supply Chain Management and wants to automatically reorder stock when inventory falls below a defined level. Which functionality should be configured?

Accepted Answer

Reorder point. The reorder point functionality in Dynamics 365 Supply Chain Management automatically generates replenishment orders when on-hand inventory drops below a configured minimum level. It uses item coverage settings to determine the reorder point, minimum and maximum quantities, and lead times, triggering purchase or transfer orders automatically. This is exactly the behavior the company needs.

Answer

Cycle counting

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Inventory aging

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Safety stock

Question 2

Which THREE capabilities are provided by the Production control module in Dynamics 365 Supply Chain Management?

Accepted Answer

Production order management. Option A (Production order management) is correct because the Production control module is responsible for creating, scheduling, releasing, starting, and reporting on production orders, which are the core documents that drive manufacturing execution. Option C (Bill of materials management) is correct because BOMs define the components and quantities required to produce an item, and they are maintained and consumed within Production control during production order processing. Option E (Route management) is correct because routes define the sequence of operations, work centers, and resource requirements for manufacturing an item, and they are configured and used by Production control to schedule and execute production jobs. Option B (Vendor collaboration) does not belong because vendor collaboration is handled through the Procurement and sourcing module and the Vendor collaboration workspace, not Production control. Option D (Demand forecasting) does not belong because demand forecasting is part of the Master planning module, which uses forecast data to drive planned orders rather than being a capability of Production control itself.

Answer

Vendor collaboration

Answer

Demand forecasting

Question 3

Which TWO are benefits of using warehouse management in Dynamics 365 Supply Chain Management?

Accepted Answer

Defining location directives for putaway. Option B is correct because warehouse management in Dynamics 365 Supply Chain Management provides location directives, which are rules that determine where items are put away (and picked from) based on factors like item, quantity, unit of measure, and warehouse zone, enabling controlled and optimized putaway. Option C is correct because wave management is a core warehouse management capability that groups work into waves and can automatically allocate and release picking work, optimizing picking across the warehouse. Option A is not a warehouse management benefit; financial budgeting is handled by Dynamics 365 Finance budgeting features, not WMS. Option D is not specific to warehouse management; purchase order generation comes from master planning/procurement processes rather than WMS. Option E is not a WMS benefit; production order status tracking belongs to production control, not warehouse management.

Answer

Managing financial budgets

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Generating purchase orders automatically

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Tracking production order status

Question 4

A manufacturing company uses Dynamics 365 Supply Chain Management. They want to use AI to forecast demand for raw materials based on historical sales and external factors like weather. Which feature should they enable?

Accepted Answer

Enable Demand Forecasting with Azure Machine Learning integration.. The scenario explicitly requires AI-driven demand forecasting that incorporates external factors like weather. Dynamics 365 Supply Chain Management's Demand Forecasting feature integrates with Azure Machine Learning to apply advanced algorithms that analyze historical sales data alongside external variables, producing more accurate predictions than traditional methods.

Answer

Use the Forecasting setup in Master planning to generate baseline forecasts.

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Configure Material Requirements Planning (MRP) to run nightly.

Answer

Implement Inventory Forecasting with Power BI dashboards.

Question 5

Which TWO features in Dynamics 365 Supply Chain Management help ensure product quality during the receiving process?

Accepted Answer

Item sampling. Item sampling (A) is correct because it lets you define a sampling plan (for example, a fixed quantity or percentage of an inbound receipt) so that only a statistically valid subset of received goods is pulled for testing, which is a core mechanism for verifying product quality at receiving. Quality orders with inspection criteria (C) are correct because a quality order created during receipt drives the actual inspection, recording test variables, measurements, and pass/fail results against defined criteria, and it can automatically update inventory status or trigger nonconformance handling based on the outcome. Location directives (B) only determine where inventory is put away or picked and do not evaluate quality. Product compliance (D) governs regulatory and hazardous-material data rather than inspection of received goods. Inventory status management (E) controls whether stock is available, blocked, or quarantined, but it is a state mechanism that quality orders and sampling feed into, not a receiving-quality feature by itself.

Answer

Location directives

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Product compliance

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Inventory status management

Question 6

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

Accepted Answer

Receiving and putaway. Option A (Receiving and putaway) is correct because inbound warehouse management processes in Dynamics 365 Supply Chain Management cover registering received items and directing them to appropriate locations via putaway work, including license plate and location directives. Option C (Picking and shipment) is correct because outbound warehouse management processes include generating picking work to fulfill sales or transfer orders and shipping them out, with packing and staging steps. The other options are not valid warehouse management processes in this context: vendor returns are handled as return order processes rather than core WMS processes, transfer order creation is an inventory/order management activity, and production consumption and reporting are manufacturing execution processes, not warehouse management processes.

Answer

Vendor returns

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Transfer order creation

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Production consumption and production reporting

Question 7

Refer to the exhibit. A pick work template has a location profile of 'BULK'. However, workers are being directed to a location with profile 'FLOOR' instead. What is the most likely cause?

Accepted Answer

The location directive for picking does not restrict to location profile 'BULK'.. The location directive determines which locations are searched for picking work. If the directive does not restrict the search to location profile 'BULK', it may return locations with profile 'FLOOR' that match other criteria (e.g., zone, warehouse). Since the work template specifies 'BULK' as the location profile, but the directive is not filtering by that profile, workers are directed to 'FLOOR' locations instead.

Answer

The work class ID 'Picking' is not authorized for 'BULK' locations.

Answer

The work template priority is too low, causing a higher priority template to override.

Answer

The item 'ITEM002' has a default storage location with profile 'FLOOR'.

Question 8

A manufacturing company uses Dynamics 365 Supply Chain Management. The production manager notices that raw material inventory levels often drop below safety stock, causing production delays. Which feature should be configured to automatically generate purchase orders when inventory falls below the reorder point?

Accepted Answer

Replenishment strategies. Replenishment strategies in Dynamics 365 Supply Chain Management allow the system to automatically generate purchase orders when inventory levels fall below the defined reorder point. This ensures that raw material stock is replenished proactively, preventing production delays caused by stockouts.

Answer

Vendor collaboration

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Warehouse management

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Inventory blocking

Question 9

A distribution company uses Dynamics 365 Supply Chain Management. They want to optimize warehouse picking routes to reduce travel time. Which module should they configure?

Accepted Answer

Warehouse management. Warehouse management includes wave processing and route optimization for picking. Option A is wrong because transportation management is for inbound/outbound freight. Option C is wrong because inventory management handles stock levels, not picking routes. Option D is wrong because procurement and sourcing is for purchasing.

Answer

Transportation management

Answer

Inventory management

Answer

Procurement and sourcing

Question 10

A manufacturer uses Dynamics 365 Supply Chain Management. The production scheduler needs to see real-time capacity load on work centers to avoid overloading. Which workspace or tool should they use?

Accepted Answer

Gantt chart in production control. The Gantt chart in the Production control module provides a visual, real-time view of scheduled production jobs against work centers and resources, showing capacity load and highlighting overloaded periods. Production schedulers use it to drag-and-drop operations, level load, and identify bottlenecks. It is the standard tool for visualizing capacity load on work centers.

Answer

Cost management workspace

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Warehouse management workspace

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Master planning workspace

Question 11

A company uses Dynamics 365 Supply Chain Management and wants to automatically reorder stock when inventory falls below a defined level. Which functionality should be configured?

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

Accepted Answer

Apply an inventory blocking to the lot. Applying an inventory blocking to the lot prevents it from being reserved, picked, or consumed in production or sales orders until the block is removed. This directly addresses the quality team's need to quarantine the lot pending testing. Inventory blocking is the standard Dynamics 365 SCM mechanism for holding stock.

Answer

Create a non-conformance for the lot

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Move the lot to a quarantine zone

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Create a quality order for the lot

Question 12

A company uses Dynamics 365 Supply Chain Management. The warehouse manager wants to use barcode scanning for receiving and shipping. Which feature should be configured?

Accepted Answer

Warehouse mobile app. The Warehouse Management mobile app in Dynamics 365 Supply Chain Management is the purpose-built interface for barcode scanning on handheld devices for receiving, put-away, picking, packing, and shipping. It is configured through mobile device menus, work user accounts, and work classes. This is the correct feature for enabling barcode-driven warehouse operations.

Answer

Product information management

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Sales and marketing

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Master planning

Question 13

A company uses Dynamics 365 Supply Chain Management. They need to track the cost of raw materials and finished goods accurately for financial reporting. Which module should they use?

Accepted Answer

Cost management. The Cost management module in Dynamics 365 Supply Chain Management is specifically designed to handle cost accounting, inventory valuation, and financial reporting for raw materials and finished goods. It provides features like standard cost, actual cost, and costing sheets to ensure accurate cost tracking and compliance with financial reporting standards.

Answer

Production control

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Inventory management

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Warehouse management

Question 14

Which TWO features are part of Dynamics 365 Supply Chain Management's warehouse management capabilities?

Accepted Answer

Wave processing. Wave processing (B) is a core warehouse management capability in Dynamics 365 Supply Chain Management, allowing you to group outbound work into waves and release them to the warehouse for picking, replenishment, and shipping. Location directives (C) are also fundamental to warehouse management: they are rules that determine where items are put away, picked, or replenished based on query criteria, and they drive directed put-away and picking. Route planning (A) belongs to transportation management rather than warehouse management. Demand forecasting (D) is part of master planning/planning optimization, not warehouse execution. Vendor collaboration (E) is a separate procurement/supplier engagement feature, not a warehouse management capability.

Answer

Route planning

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Demand forecasting

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Vendor collaboration

Question 15

Which THREE components are essential for setting up a production process in Dynamics 365 Supply Chain Management?

Accepted Answer

Bill of materials (BOM). A Bill of materials (BOM) is essential because it defines the components, raw materials, and quantities required to manufacture a finished item in Dynamics 365 Supply Chain Management. A Route is essential because it specifies the sequence of operations, work centers, and resource requirements needed to produce the item. A Production order is essential because it authorizes and drives the actual manufacturing execution, tying the BOM and Route to a specific quantity, date, and item to be produced. A Purchase order is not required for production setup itself, as it is used for procuring materials from vendors rather than defining the manufacturing process. A Sales order is also not essential, because it represents customer demand and is not part of the core production process configuration.

Answer

Purchase order

Answer

Sales order