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

Question 1

A company uses Dynamics 365 Supply Chain Management to manage its supply chain. They need to configure settings for transportation management. Which TWO parameters are typically defined?

Accepted Answer

Rate masters. Options A and B are correct because shipping carriers and rate masters are core transportation management parameters. Option C is incorrect because production routes are manufacturing. Option D is incorrect because warehouse setups are warehouse management. Option E is incorrect because vendor catalogs are procurement.

Answer

Production routes

Answer

Warehouse locations

Answer

Vendor catalogs

Question 2

Refer to the exhibit. A production planner sees that a work center has a capacity of 480 minutes per day, but jobs are consistently late. They suspect the calendar is not accounting for breaks. What should they verify?

Accepted Answer

Verify that the calendar includes break times. If breaks are not in the calendar, effective capacity is lower; the planner should check if the calendar includes break hours. Option A is incorrect because efficiency is 100% but doesn't account for breaks. Option B is incorrect because scheduling direction affects sequencing, not capacity. Option D is incorrect because capacity minutes is set.

Answer

Reduce capacity to 420 minutes

Answer

Increase efficiency percentage

Answer

Change scheduling direction to backward

Question 3

Refer to the exhibit. A company manufactures a finished good (FGI-100) and produces a co-product (CP-01) during production. The cost accountant notices that the cost of FGI-100 does not reflect the offset from the co-product. What should they configure?

Accepted Answer

Set up co-product cost allocation. Co-product cost allocation must be set up to distribute costs between the main item and co-products, ensuring the cost of FGI-100 reflects the offset from the co-product. Option B is incorrect because adjusting the costing sheet is for overhead allocation, not co-product cost allocation. Option C is incorrect because creating a new BOM version defines materials or production structure, not cost allocation. Option D is incorrect because defining a route version specifies operations, not cost allocation.

Answer

Adjust the costing sheet

Answer

Create a new BOM version

Answer

Define a route version

Question 4

Refer to the exhibit. A warehouse manager wants to store high-volume items in location A-01-01. They notice the location type is 'Bulk'. What is the primary purpose of a Bulk location type?

Accepted Answer

To store large quantities of items. Bulk location types are designed for storing large quantities of items, typically on pallets, and are used for high-volume storage. Option A is incorrect because quarantine locations are used for defective items. Option B is incorrect because staging locations are for temporary storage before outbound shipment. Option C is incorrect because picking locations are for items that are picked for orders, not for bulk storage.

Answer

To quarantine defective items

Answer

To stage outbound shipments

Answer

To store items for order picking

Question 5

A company uses Dynamics 365 Supply Chain Management to manage its supply chain. They need to configure settings for transportation management. Which TWO parameters are typically defined?

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

Accepted Answer

Master planning (MRP). Master planning (MRP) is appropriate because it considers both demand and supply to generate planned orders, ensuring raw materials are available without overstocking. Kanban is a pull-based system for repetitive manufacturing, not suitable for raw material planning. Demand forecasting is an input to planning, not a planning method itself. Reorder point planning only triggers replenishment when stock drops to a specific level, which may not account for future demand fluctuations.

Answer

Kanban

Answer

Demand forecasting

Answer

Reorder point planning

Question 6

A company uses Dynamics 365 Supply Chain Management to manage its supply chain. They need to configure settings for transportation management. Which TWO parameters are typically defined?

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

Accepted Answer

ABC classification. ABC classification categorizes items based on usage value, helping prioritize management of slow-moving items. Option A is incorrect because Cycle counting is for inventory accuracy, not classification. Option B is incorrect because Inventory turnover is a metric, not a classification method. Option C is incorrect because Product lifecycle management deals with product stages, not value-based classification.

Answer

Cycle counting

Answer

Inventory turnover

Answer

Product lifecycle management

Question 7

A logistics manager wants to optimize delivery routes to reduce transportation costs. Which module in Dynamics 365 Supply Chain Management should they use?

Accepted Answer

Transportation management. Transportation management handles routing and freight optimization. Option B is incorrect because Procurement and sourcing is for purchasing. Option C is incorrect because Warehouse management is for warehousing. Option D is incorrect because Production control is for manufacturing.

Answer

Procurement and sourcing

Answer

Warehouse management

Answer

Production control

Question 8

A company uses Dynamics 365 Supply Chain Management to manage quality inspections. They want to automatically generate quality orders for specific products upon receipt. What should they configure?

Accepted Answer

Quality associations. Quality associations define the rules for automatically generating quality orders, such as upon receipt of specific products. Option A is incorrect because Nonconformance tracking is used to manage quality issues after they occur, not to generate orders automatically. Option B is incorrect because Test instruments are tools used during inspections, not triggers for order creation. Option D is incorrect because Quality groups are used to group items for sampling plans, not to define auto-generation rules.

Answer

Nonconformance tracking

Answer

Test instruments

Answer

Quality groups

Question 9

A company uses Dynamics 365 Supply Chain Management and wants to implement a process where suppliers can monitor inventory levels and automatically replenish stock. Which feature should they enable?

Accepted Answer

Vendor-managed inventory (VMI). Vendor-managed inventory (VMI) allows suppliers to monitor inventory levels and automatically replenish stock, which matches the requirement. Option A (Consignment inventory) is incorrect because it is about ownership, not supplier-managed replenishment. Option B (Purchase requisition) is an internal request, not supplier-facing. Option C (Blanket purchase orders) are long-term agreements but do not enable automatic replenishment by the supplier.

Answer

Consignment inventory

Answer

Purchase requisition

Answer

Blanket purchase orders

Question 10

A company uses Dynamics 365 Supply Chain Management and wants to track production costs in real time. Which feature should they use?

Accepted Answer

Production control. Production control allows tracking of production orders and costs in real time. Option A is incorrect because Cost accounting is for general cost analysis, not real-time production cost tracking. Option B is incorrect because Inventory management tracks stock levels, not production costs. Option D is incorrect because Project management is for project-based costing, not production.

Answer

Cost accounting

Answer

Inventory management

Answer

Project management

Question 11

A manufacturing company uses Dynamics 365 Supply Chain Management. They notice that the planned production orders are not considering the latest demand changes. What should you check first?

Accepted Answer

Master planning execution. Master planning must be run to recalculate planned production orders based on the latest demand changes. Option D is correct. Option A (Warehouse location directives) controls where items are stored/picked, not planning. Option B (Inventory on-hand report) shows current stock but does not update planned orders. Option C (Quality order settings) manages quality inspections, not planning.

Answer

Warehouse location directives

Answer

Inventory on-hand report

Answer

Quality order settings

Question 12

A company uses Dynamics 365 Supply Chain Management to manage its supply chain. They need to configure settings for transportation management. Which TWO parameters are typically defined?

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

Accepted Answer

Modify the mobile device menu item for receipt. Modifying the mobile device menu item for receipt allows configuration to enforce license plate scanning when completing a transfer order receipt. Option A (mobile device display settings) controls the look and feel, not scanning requirements. Option C (cycle counting thresholds) is used for inventory counting, not transfer order receipts. Option D (work templates) defines how work is created, not the scanning behavior at receipt.

Answer

Configure the mobile device display settings

Answer

Set up cycle counting thresholds

Answer

Define work templates for transfer orders

Question 13

A company uses Dynamics 365 Supply Chain Management to manage its supply chain. They need to configure settings for transportation management. Which TWO parameters are typically defined?

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

Accepted Answer

Production BOM explosion. The Production BOM explosion automatically creates picking lists and reduces raw material inventory when a finished product is reported as finished. Option A is correct. Option B (Purchase order approval) is unrelated to inventory reduction during production. Option C (Production routes) defines the sequence of operations but does not automatically reduce component quantities. Option D (Warehouse locations) defines storage locations but does not automatically reduce inventory during production.

Answer

Purchase order approval

Answer

Production routes

Answer

Warehouse locations

Question 14

A company uses Dynamics 365 Supply Chain Management to manage its supply chain. They need to configure settings for transportation management. Which TWO parameters are typically defined?

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

Accepted Answer

Purchase trade agreements. Purchase trade agreements allow you to define specific sourcing rules for items, including a preferred vendor relationship. This ensures that a particular item is always sourced from the designated vendor regardless of price. Option A (Vendor allocation rules) is used to distribute purchase quantities among multiple vendors, not to force a single preferred vendor. Option B (Product dimension groups) define product variants, not sourcing preferences. Option C (Inventory status codes) control inventory availability and transaction types, not vendor selection.

Answer

Vendor allocation rules

Answer

Product dimension groups

Answer

Inventory status codes

Question 15

A distribution company uses Dynamics 365 Supply Chain Management. They notice that transfer order shipments are not being consolidated into loads efficiently. What should they configure to improve consolidation?

Accepted Answer

Load building workbench. The Load building workbench is used to consolidate transfer order shipments into loads efficiently by allowing manual or automatic load building. The other options serve different purposes: Item arrival overview is for inbound receiving, Inventory reservation hierarchy controls reservation priorities, and Picking workbench is for warehouse picking operations.

Answer

Item arrival overview

Answer

Inventory reservation hierarchy

Answer

Picking workbench