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

Question 1

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. Option B is correct because co-product cost allocation must be set up to distribute costs between the main item and co-products. Option A is incorrect because BOM version is already defined. Option C is incorrect because route version is for operations. Option D is incorrect because costing sheet is for overhead.

Answer

Adjust the costing sheet

Answer

Create a new BOM version

Answer

Define a route version

Question 2

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. Option C is correct because Bulk locations are used for high-volume storage, often palletized. Option A is incorrect because picking locations are for order picking. Option B is incorrect because staging is temporary. Option D is incorrect because quarantine is for quality issues.

Answer

To quarantine defective items

Answer

To stage outbound shipments

Answer

To store items for order picking

Question 3

A company uses Dynamics 365 Supply Chain Management and wants to ensure that raw materials are available for production without overstocking. They use a planning method that considers both demand and supply. Which planning method is most appropriate?

Accepted Answer

Master planning (MRP). Option B is correct because Master planning (MRP) balances demand and supply to generate planned orders. Option A is incorrect because Reorder point only triggers at a point. Option C is incorrect because Kanban is pull-based. Option D is incorrect because Demand forecasting is input, not planning.

Answer

Kanban

Answer

Demand forecasting

Answer

Reorder point planning

Question 4

A company uses Dynamics 365 Supply Chain Management and notices that inventory costs are increasing due to high carrying costs for slow-moving items. They want to automate the classification of items based on usage value. Which feature should they use?

Accepted Answer

ABC classification. Option C is correct because ABC classification categorizes items by usage value, helping prioritize management. Option A is incorrect because Cycle counting is for accuracy. Option B is incorrect because Inventory turnover is a metric. Option D is incorrect because Product lifecycle management is for product stages.

Answer

Cycle counting

Answer

Inventory turnover

Answer

Product lifecycle management

Question 5

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

Answer

Procurement and sourcing

Answer

Warehouse management

Answer

Production control

Question 6

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. Option B is correct because Quality associations define when quality orders are generated automatically. Option A is incorrect because Quality groups classify items. Option C is incorrect because Test instruments are for testing. Option D is incorrect because Nonconformance tracking is for issues.

Answer

Nonconformance tracking

Answer

Test instruments

Answer

Quality groups

Question 7

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). Option A is correct because Vendor-managed inventory (VMI) allows suppliers to manage inventory and replenish. Option B is incorrect because Consignment inventory is ownership-based. Option C is incorrect because Blanket purchase orders are long-term agreements. Option D is incorrect because Purchase requisition is internal request.

Answer

Consignment inventory

Answer

Purchase requisition

Answer

Blanket purchase orders

Question 8

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

Answer

Cost accounting

Answer

Inventory management

Answer

Project management

Question 9

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 update planned orders based on demand changes. Option B is correct. Option A is for inventory transactions, not planning. Option C is about quality, not planning. Option D is for warehouse operations.

Answer

Warehouse location directives

Answer

Inventory on-hand report

Answer

Quality order settings

Question 10

A company uses Dynamics 365 Supply Chain Management with advanced warehouse management. They need to enforce that workers scan a license plate when completing a transfer order receipt. Which configuration should be used?

Accepted Answer

Modify the mobile device menu item for receipt. Mobile device menu items can enforce license plate scanning. Option C is correct. Option A is for mobile device display settings. Option B is for cycle counting. Option D is for work creation.

Answer

Configure the mobile device display settings

Answer

Set up cycle counting thresholds

Answer

Define work templates for transfer orders

Question 11

A company uses Dynamics 365 Supply Chain Management to manage inventory. They want to automatically reduce the quantity of a component when a finished product is reported as finished. Which feature should they use?

Accepted Answer

Production BOM explosion. The production BOM explosion creates picking lists that reduce raw material inventory. Option D is correct. Option A is for purchase orders. Option B is for sales orders. Option C is for warehouse operations.

Answer

Purchase order approval

Answer

Warehouse location setup

Answer

Sales order reservation

Question 12

A company uses Dynamics 365 Supply Chain Management. They need to ensure that a specific item is always sourced from a preferred vendor, even if another vendor has a lower price. Which configuration should be used?

Accepted Answer

Purchase trade agreements. Trade agreements can define sourcing rules, including preferred vendor. Option B is correct. Option A is for allocation, not sourcing. Option C is for inventory transactions. Option D is for product dimensions.

Answer

Vendor allocation rules

Answer

Product dimension groups

Answer

Inventory status codes

Question 13

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. Load building workbench allows manual or automatic consolidation. Option A is correct. Option B is for picking lines. Option C is for inventory reservations. Option D is for item arrivals.

Answer

Item arrival overview

Answer

Inventory reservation hierarchy

Answer

Picking workbench

Question 14

A company uses Dynamics 365 Supply Chain Management for quality control. They want to automatically generate quality orders for a specific item when it is received from a certain vendor. How should they achieve this?

Accepted Answer

Quality associations. Quality associations define when quality orders are generated automatically. Option C is correct. Option A is for generic quality groups. Option B is for test instruments. Option D is for nonconformance.

Answer

Quality groups

Answer

Nonconformance types

Answer

Test instruments

Question 15

A company uses Dynamics 365 Supply Chain Management with process manufacturing. They need to manage byproducts and co-products in a production order. Which functionality should they use?

Accepted Answer

Formula with co-products and by-products. In process manufacturing, co-products and by-products are managed using a formula, not a bill of materials (BOM). The formula defines the production recipe, including the main output, co-products (intended secondary outputs), and by-products (unavoidable secondary outputs). This allows the system to automatically credit or cost these outputs during production order processing.

Answer

Bill of materials (BOM)

Answer

Location directives

Answer

Transfer orders

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

Exhibit

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

Exhibit