MB-920 Describe Dynamics 365 Supply Chain Management Practice Test 16 — 15 Questions

Question 1

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?

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

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 nonconformance types. Option D is for test instruments.

Answer

Quality groups

Answer

Nonconformance types

Answer

Test instruments

Question 2

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

Question 3

A company uses Dynamics 365 Supply Chain Management. They want to use AI to forecast demand and suggest replenishment. Which feature should they enable?

Accepted Answer

Demand forecasting. Demand forecasting uses AI to predict demand and drive replenishment. Option B is correct. Option A is for inventory counting. Option C is for warehouse automation. Option D is for production scheduling.

Answer

Cycle counting

Answer

Warehouse mobile device

Answer

Finite capacity scheduling

Question 4

Which TWO actions can be performed using the Dynamics 365 Supply Chain Management mobile warehouse app?

Accepted Answer

Receive purchase orders. The Dynamics 365 Supply Chain Management mobile warehouse app supports receiving purchase orders (option A) and performing cycle counting (option D). Option B (create sales orders) is typically done in the web client, option C (generate advanced shipping notices) is not a mobile app feature, and option E (run master planning) is a back-office function not available in the mobile app.

Answer

Create sales orders

Answer

Generate advanced shipping notices

Answer

Run master planning

Question 5

Which THREE are valid item model groups used in Dynamics 365 Supply Chain Management?

Accepted Answer

LIFO. Item model groups in Dynamics 365 Supply Chain Management include FIFO, LIFO, and Moving average. These determine how inventory costs are calculated and tracked. Weighted average is a costing method, not an item model group. Standard cost is also a costing method, not a model group. Therefore, the correct answers are LIFO, Moving average, and FIFO.

Answer

Standard cost

Answer

Weighted average

Question 6

Which TWO are benefits of using Dynamics 365 Supply Chain Management with IoT integration?

Accepted Answer

Real-time asset tracking. IoT integration enables real-time asset tracking (Option C) and predictive maintenance on equipment (Option E). Option A (real-time customer credit check) is typically handled by Finance or Credit Management modules, not IoT. Option B (vendor negotiation) is a procurement activity unrelated to IoT. Option D (automated financial closing) is a finance process, not an IoT benefit.

Answer

Real-time customer credit check

Answer

Vendor negotiation

Answer

Automated financial closing

Question 7

Refer to the exhibit. A purchase order is confirmed but the lines are still open. What does this indicate?

Accepted Answer

The purchase order is approved but not yet received. Confirmed means the purchase order is approved. Open lines indicate that no receipt has been posted yet, so the order is approved but not yet received. Therefore, option A is correct. Option B is incorrect because the order is already confirmed (approved). Option C is incorrect because open lines mean the order is not yet invoiced. Option D is incorrect because open lines mean the order is not fully received.

Answer

The purchase order is pending approval

Answer

The purchase order is fully invoiced

Answer

The purchase order is fully received

Question 8

Refer to the exhibit. The production order status is 'Started' and BOM consumption is set to 'Manual'. What must happen before the order can be reported as finished?

Accepted Answer

A picking list must be registered to consume raw materials. With manual consumption, a picking list must be registered to consume raw materials before the order can be reported as finished. Option C is correct. Option A describes automatic consumption, which is not applicable here. Option B is not required; scheduling is done before starting. Option D is for estimating costs, which is done before release.

Answer

The system automatically consumes raw materials

Answer

The order must be scheduled again

Answer

The order must be estimated

Question 9

Refer to the exhibit. A transfer order is shipped but not received. Which step should be performed next?

Accepted Answer

Register the receipt at WH-02. After a transfer order is shipped, the next step is for the receiving warehouse (WH-02) to register the receipt. This completes the transfer process. Option B is correct. Option A is incorrect because the order has already been shipped. Option C is not standard procedure, and Option D would only be needed if the original order was cancelled.

Answer

Ship the order again

Answer

Delete the transfer order

Answer

Create a new transfer order

Question 10

A manufacturing company uses Dynamics 365 Supply Chain Management. The production planner notices that work orders are not being automatically generated when raw material inventory falls below the reorder point. Which configuration should the administrator verify?

Accepted Answer

Master planning setup. Master planning generates planned orders (including work orders) based on inventory levels and reorder points. Option A is incorrect because product configuration models are used for configurable products, not for automatic replenishment. Option B is incorrect because production control parameters manage how work orders are executed, not their automatic creation. Option C is incorrect because quality management configuration handles inspections and nonconformance, not inventory replenishment.

Answer

Product configuration model

Answer

Production control parameters

Answer

Quality management configuration

Question 11

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?

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

Accepted Answer

Warehouse Management. The Warehouse Management module in Dynamics 365 Supply Chain Management provides guided step-by-step processes for mobile device users, including the mobile device portal that directs warehouse workers through picking tasks. Option A (Transport Management) is incorrect because it focuses on freight and shipping logistics, not warehouse picking. Option C (Inventory Management) is incorrect because it deals with stock quantities and transactions, not guided picking. Option D (Production Control) is incorrect because it manages manufacturing orders and execution, not warehouse picking.

Answer

Transport Management

Answer

Inventory Management

Answer

Production Control

Question 12

A global manufacturer uses Dynamics 365 Supply Chain Management. They need to configure a product that is manufactured in multiple variants based on size and color, with each variant having its own bill of materials (BOM). Which product configuration approach should they use?

Accepted Answer

Product master with predefined variants. A product master with predefined variants allows each variant to have its own bill of materials (BOM), which is exactly what is needed for products manufactured in multiple variants based on size and color. Option B is incorrect because a single product with multiple BOM versions is used for different production dates or processes, not for managing different product variants. Option C is incorrect because constraint-based configuration is intended for highly configurable products with many options and rules, not for simple predefined variants. Option D is incorrect because catch weight products are used for items that are measured by weight, not for variant configuration.

Answer

Single product with multiple BOM versions

Answer

Product master with constraint-based configuration

Answer

Catch weight product

Question 13

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?

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

Accepted Answer

Set up a quality association for purchase order product receipt. A quality association links a quality order creation to a process event like product receipt. Option B is wrong because setting inventory status to blocking does not trigger quality order creation; it is used for controlling inventory availability. Option C is wrong because nonconformance management handles failed inspections, not triggering them. Option D is wrong because item sampling defines which items are tested, not the trigger.

Answer

Set inventory status to blocking

Answer

Configure nonconformance management

Answer

Define item sampling for the product

Question 14

A company wants to use Dynamics 365 Supply Chain Management to optimize their transportation costs and delivery schedules. Which module should they primarily use?

Accepted Answer

Transportation Management. Transportation Management. The Transportation Management module is specifically designed to manage shipping, freight, and logistics optimization, which directly aligns with the goal of optimizing transportation costs and delivery schedules. Option A (Procurement and Sourcing) is incorrect because it manages purchasing and supplier relationships, not transportation. Option B (Master Planning) is incorrect as it focuses on supply and demand planning, not transportation optimization. Option D (Warehouse Management) is incorrect because it deals with internal warehouse operations, not transportation.

Answer

Procurement and Sourcing

Answer

Master Planning

Answer

Warehouse Management

Question 15

A company uses Dynamics 365 Supply Chain Management and wants to provide real-time visibility of inventory levels across multiple warehouses to external partners. Which feature should they use?

Accepted Answer

Inventory Visibility add-in. (Inventory Visibility add-in) is correct because it provides real-time, multi-warehouse inventory visibility to external partners via APIs. Option A (Master planning) is wrong because it is used for supply and demand planning, not real-time inventory sharing. Option B (Inventory journals) is wrong because they are used for internal inventory adjustments and transactions, not for external visibility. Option D (Warehouse mobile app) is wrong because it is designed for warehouse workers to perform tasks, not for sharing inventory data with external partners.

Answer

Master planning

Answer

Inventory journals

Answer

Warehouse mobile app