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

Question 1

You are configuring a reservation hierarchy for a warehouse in Dynamics 365 Supply Chain Management. Based on the exhibit, what is the primary criterion for picking inventory?

Accepted Answer

Location. (Location). The reservation hierarchy shows dimensions in order of priority: location (priority 1), lot number (priority 2), expiration date (priority 3). The primary criterion for picking inventory is the dimension with the highest priority (priority 1), which is location. Option A (Expiration date) is wrong because it is priority 3, not the primary. Option B (Lot number) is wrong because it is priority 2. Option D (FIFO) is the name of the reservation hierarchy method, not a picking dimension.

Answer

Expiration date

Answer

Lot number

Answer

FIFO

Question 2

A manufacturing company uses Dynamics 365 Supply Chain Management. They notice that the production schedule is not reflecting real-time capacity constraints, causing delays. Which feature should they configure to dynamically adjust schedules based on current resource availability?

Accepted Answer

Finite scheduling. Finite scheduling in Dynamics 365 Supply Chain Management considers actual resource capacity constraints (machine hours, labor, working calendars) when sequencing production jobs, so the schedule reflects real-time availability. It dynamically adjusts job start/end times when resources are constrained, preventing over-capacity scheduling. This is exactly what the scenario requires to stop delays caused by ignoring capacity limits.

Answer

Shop floor execution

Answer

Gantt chart views

Answer

Material requirements planning (MRP)

Question 3

A distribution company is implementing Dynamics 365 Supply Chain Management and wants to optimize transportation costs. They have contracts with multiple carriers offering different rates based on weight, distance, and delivery speed. Which module should they use to automatically select the most cost-effective carrier for each shipment?

Accepted Answer

Transportation management. Transportation management (TMS) includes rate engines and routing guides to select carriers based on defined criteria such as weight, distance, and delivery speed, thereby optimizing transportation costs. Option A (Inventory management) is wrong because it focuses on stock levels and inventory control, not carrier selection. Option B (Warehouse management) is wrong because it handles inbound and outbound warehouse operations, not transportation planning. Option D (Procurement and sourcing) is wrong because it deals with purchasing and vendor selection, not shipping logistics.

Answer

Inventory management

Answer

Warehouse management

Answer

Procurement and sourcing

Question 4

A manufacturer uses Dynamics 365 Supply Chain Management and wants to implement a quality control process where incoming raw materials are inspected before being accepted into inventory. Which feature should they use to enforce that inspection?

Accepted Answer

Quality orders. Quality orders in Dynamics 365 Supply Chain Management are the correct feature because they allow you to define inspection requirements for incoming raw materials, automatically blocking receipt or putaway until the inspection is completed and the order is approved. This enforces a mandatory quality check before inventory is accepted, directly meeting the requirement.

Answer

Quarantine zones

Answer

Inventory journals

Answer

Nonconformance management

Question 5

A company uses Dynamics 365 Supply Chain Management to manage its supply chain. They need to forecast demand for the next quarter to plan procurement and production. Which module should they use for demand forecasting?

Accepted Answer

Master planning. Master planning in Dynamics 365 Supply Chain Management is the module specifically designed for demand forecasting. It uses historical data and statistical methods to generate forecasts that drive procurement and production planning. The other modules handle execution or sales tracking, not the forecasting engine.

Answer

Procurement and sourcing

Answer

Production control

Answer

Sales and marketing

Question 6

A company uses Dynamics 365 Supply Chain Management and wants to automate the replenishment of items from a central warehouse to regional distribution centers based on real-time sales data. Which concept should they use?

Accepted Answer

Replenishment strategies (e.g., min/max). Replenishment strategies such as min/max are designed to automate inventory replenishment based on predefined thresholds and real-time demand signals. In Dynamics 365 Supply Chain Management, these strategies calculate when stock at a regional distribution center falls below a minimum level and automatically generate replenishment orders from the central warehouse, making them the correct choice for this scenario.

Answer

Transfer orders

Answer

Bill of materials

Answer

Kanban signals

Question 7

A company uses Dynamics 365 Supply Chain Management and wants to use AI to optimize inventory levels by predicting stockouts and suggesting reorder quantities. Which Copilot feature should they use?

Accepted Answer

Copilot in Dynamics 365 Supply Chain Management. Copilot in Dynamics 365 Supply Chain Management is specifically designed to provide AI-driven insights for inventory optimization, including predicting stockouts and suggesting reorder quantities. It leverages the native inventory and demand forecasting capabilities of the Supply Chain Management module. The other Copilot features are tailored to different domains (customer service, finance, sales) and do not include inventory-specific AI assistance.

Answer

Copilot in Dynamics 365 Customer Service

Answer

Copilot in Dynamics 365 Finance

Answer

Copilot in Dynamics 365 Sales

Question 8

Which TWO of the following are capabilities of Dynamics 365 Supply Chain Management?

Accepted Answer

Transportation management. Transportation management (B) is a core capability of Dynamics 365 Supply Chain Management, providing inbound and outbound load planning, rate and route configuration, carrier management, and freight reconciliation through the Transportation management module. Demand forecasting (C) is also a native Supply Chain Management capability, delivered via master planning and the Demand forecasting feature that uses historical data and Azure Machine Learning to generate item-level forecasts consumed by planning runs. Customer relationship management (A) belongs to Dynamics 365 Sales/Customer Engagement, not Supply Chain Management. Project accounting (D) is provided by Dynamics 365 Project Operations (and previously Finance project management and accounting), not as a Supply Chain Management capability. Human resources management (E) is delivered by Dynamics 365 Human Resources, so it is not part of Supply Chain Management.

Answer

Customer relationship management

Answer

Project accounting

Answer

Human resources management

Question 9

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

Accepted Answer

Shipping. In Dynamics 365 Supply Chain Management, the core warehouse management processes are inbound receiving, outbound shipping, and internal picking, so options A (Shipping), C (Picking), and D (Receiving) are correct. Receiving handles inbound registration and put-away of arriving goods, picking handles the retrieval of items from storage locations to fulfill demand, and shipping handles the final outbound staging, packing, and loading of goods to customers. Budgeting (B) is a financial planning function in Finance, not a warehouse execution process, and invoicing (E) is an accounts receivable/finance activity rather than a warehouse operation.

Answer

Budgeting

Answer

Invoicing

Question 10

A company configured the warehouse management parameters as shown in the exhibit. What is the purpose of this configuration?

Accepted Answer

To automatically replenish picking locations when the quantity falls below the minimum of 10 units. The configuration sets a minimum replenishment quantity of 10 units, which triggers automatic replenishment during wave processing when the picking location falls below that threshold. Option A is incorrect because the configuration does not adjust min/max during picking; it defines a fixed threshold. Option C is incorrect because location directives are still used; the wave step is for replenishment, not to disable directives. Option D is incorrect because replenishment is automatic, not manual.

Answer

To adjust the minimum and maximum replenishment quantities during picking

Answer

To disable location directives and use wave-based processing

Answer

To manually trigger replenishment when inventory drops below 10 units

Question 11

A company uses the master plan configuration shown in the exhibit. What is the effect of setting IncludeDemandForecast to true?

Accepted Answer

The master plan will consider both forecasted demand and existing sales orders. When IncludeDemandForecast is set to true in the master plan configuration, the master planning engine in Dynamics 365 Supply Chain Management combines forecasted demand with existing sales orders to generate a comprehensive supply plan. This ensures that both confirmed customer orders and predicted future demand are considered, preventing under- or over-stocking.

Answer

The master plan will calculate capacity requirements based on forecast

Answer

The master plan will only consider forecasted demand and ignore sales orders

Answer

The master plan will require manual input of forecast data

Question 12

A manufacturing company uses Dynamics 365 Supply Chain Management. The production manager reports that the system is not automatically reserving raw materials when a production order is released. What should you check first?

Accepted Answer

Confirm that the 'Automatic reservation' field is set to 'On' in the production order defaults.. The most direct cause of automatic reservation not occurring on release is that the 'Automatic reservation' field in the production order defaults is not set to 'On'. This setting controls whether the system automatically reserves raw materials when a production order is released.

Answer

Check if the raw materials are batch-controlled and batch attributes are configured.

Answer

Verify that the raw materials have an inventory status of 'Available'.

Answer

Ensure that the production route includes all required operation steps.

Question 13

A warehouse supervisor uses the Dynamics 365 Warehouse Management mobile app to process a purchase order receipt. When scanning a license plate, the app displays 'License plate is not active'. What is the most likely cause?

Accepted Answer

The license plate's status is set to 'Inactive' in the system.. The 'License plate is not active' error in the Dynamics 365 Warehouse Management mobile app indicates that the license plate record in the system has its status set to 'Inactive'. This status prevents the license plate from being used in any warehouse transactions, including purchase order receipts. The app checks the license plate's status field before allowing operations, and an inactive status blocks the process.

Answer

The license plate is already fully received.

Answer

The receiving location is set to 'Inactive'.

Answer

The item on the purchase order is not license plate–controlled.

Question 14

A company uses Dynamics 365 Supply Chain Management with the Quality Management module. They want to automatically generate quality orders for incoming raw materials based on specific criteria like vendor and item. Which feature should they configure?

Accepted Answer

Quality associations.. Quality associations in Dynamics 365 Supply Chain Management allow you to define rules that automatically generate quality orders when specific conditions are met, such as a particular vendor or item for incoming raw materials. This feature links the triggering event (e.g., a purchase order receipt) to the required quality testing process without manual intervention.

Answer

Nonconformance reports.

Answer

Quarantine zones.

Answer

Test groups.

Question 15

A company uses Dynamics 365 Supply Chain Management. They want to use the product configurator to allow salespeople to configure a product's options (e.g., color, size) based on rules. What should they create?

Accepted Answer

Constraint-based product configuration model.. A constraint-based product configuration model in Dynamics 365 Supply Chain Management lets you define product options (color, size, etc.) and the rules/constraints that govern valid combinations. Salespeople use the configurator at order entry to select options, and the system validates them against the constraints to generate a valid product variant.

Answer

Bill of materials (BOM) and route.

Answer

Product variant with predefined options.

Answer

Item configuration group.