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

Question 1

A logistics company uses Dynamics 365 Supply Chain Management to manage transportation. They need to calculate freight charges automatically based on carrier rates and shipment details. Which module should they use?

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

Accepted Answer

Transportation management. The Transportation management module in Dynamics 365 Supply Chain Management is specifically designed to handle freight rate calculations, carrier rate negotiations, and shipment cost automation. It integrates carrier rate engines to compute charges based on shipment details like weight, volume, and destination, making it the correct choice for this requirement.

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Warehouse management

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Inventory management

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Procurement and sourcing

Question 2

A company uses Dynamics 365 Supply Chain Management with the Process Manufacturing module. They produce a batch of paint and need to adjust the recipe based on the actual concentration of a raw material. What should they use?

Accepted Answer

Potency management.. Potency management in Dynamics 365 Supply Chain Management is specifically designed to handle variations in the concentration or strength of raw materials in process manufacturing. When producing a batch of paint, the actual concentration of a raw material may differ from the standard, requiring the recipe to be adjusted to achieve the desired final product specifications. Potency management allows you to define potency ranges and automatically adjust ingredient quantities based on the actual potency of the raw material, ensuring product consistency and quality.

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Catch weight functionality.

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Co-product and by-product planning.

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Batch order for the paint.

Question 3

A company uses Dynamics 365 Supply Chain Management. They are implementing demand-driven material requirements planning (DDMRP). Which TWO elements are part of the DDMRP methodology?

Accepted Answer

Decoupling points. DDMRP is built around strategically placing decoupling points (Option B) in the supply chain to break dependency chains and isolate variability, which is a core element of the methodology. It also relies on buffer levels and zones (Option C) — the green, yellow, and red zones that determine replenishment signals based on net flow position — as the primary mechanism for sizing and triggering replenishment. Lead time offsetting (Option A) belongs to traditional MRP/DRP planning logic, not DDMRP, which instead uses buffers rather than lead-time offsets to manage variability. Safety stock levels (Option D) are a conventional MRP inventory tactic, whereas DDMRP replaces them with strategic buffers at decoupling points. Reorder point calculation (Option E) is a classic min/max or EOQ-style technique and is not part of the DDMRP methodology.

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Lead time offsetting

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Safety stock levels

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Reorder point calculation

Question 4

A company uses Dynamics 365 Supply Chain Management with the Warehouse Management module. They need to configure wave processing to automatically create work for outbound shipments. Which THREE components are required for wave processing?

Accepted Answer

Work template. Option A (Work template) is required because wave processing generates work records, and the work template defines how that work is created — including the work order type, work transaction types, and the picking/putting flow used when the wave releases work to the warehouse. Option C (Location directive) is required because once work is generated, location directives determine the specific pick and put locations (by strategy, e.g., FEFO/FIFO) that the work lines will use during execution. Option E (Wave template) is required because it is the core configuration that drives wave processing: it defines the wave creation method (manual or automatic), the sequence of wave steps (such as replenishment, allocation, and work creation), and the work template assigned to generate work. Option B (Containerization) is not required — it is an optional step used only when packing into containers is needed, not a prerequisite for creating outbound work. Option D (Mobile device menu item) is not required for wave processing itself; it is only needed later if warehouse workers execute the generated work via the Warehouse Management mobile app.

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Containerization

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Mobile device menu item

Question 5

A company uses Dynamics 365 Supply Chain Management. They want to use the Landed Cost module to manage the total cost of imported goods. Which TWO cost types can be tracked using Landed Cost?

Accepted Answer

Freight charges. Landed Cost in Dynamics 365 Supply Chain Management is designed to capture the additional costs incurred to bring purchased goods to their final destination, so option A (Freight charges) is correct because transportation costs are a core landed-cost component that can be allocated to items via cost types and allocation methods. Option B (Insurance) is also correct because insurance premiums incurred during shipment are a classic landed-cost element that the module supports as a cost type and allocates across the received goods. Option C (Manufacturing overhead) is not tracked by Landed Cost because it relates to production costing rather than inbound logistics. Option D (Storage fees) is not a standard landed-cost component in this module, as it concerns warehousing rather than bringing goods to their destination. Option E (Raw material cost) is not a landed cost because it is the base item or purchase price captured on the purchase order line, not an additional landed-cost charge.

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Manufacturing overhead

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Storage fees

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Raw material cost

Question 6

You are analyzing a master plan configuration. The company complains that the plan does not consider material availability when scheduling production orders. Which setting in the exhibit is causing this?

Accepted Answer

The 'FiniteMaterial' parameter is set to false.. The 'FiniteMaterial' parameter controls whether material availability is considered during master planning. When set to false, the system ignores material constraints and schedules production orders without checking if required materials are available, which directly matches the company's complaint.

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The plan scope is limited to one site.

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The scheduling method is 'Operations scheduling'.

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The 'FiniteCapacity' parameter is set to true.

Question 7

You are configuring a landed cost voyage. The company wants to ensure that the goods are tracked as in-transit inventory from the time they leave the port of loading. Which element in the exhibit enables this?

Accepted Answer

GoodsInTransitOrder. The GoodsInTransitOrder element enables tracking of goods as in-transit inventory from the time they leave the port of loading. This element in the landed cost voyage configuration specifies the order that represents the in-transit inventory, allowing the system to track and value goods while they are in transit.

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PortOfLoading and PortOfDischarge

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VoyageId

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CostType and Amount

Question 8

A manufacturing company uses Dynamics 365 Supply Chain Management. They need to reduce inventory holding costs by optimizing reorder points. Which feature should they use?

Accepted Answer

Reorder Point Planning. Reorder Point Planning in Dynamics 365 Supply Chain Management is the feature designed to calculate and manage reorder points and safety stock based on demand, lead times, and service levels, directly reducing inventory holding costs while avoiding stockouts. It uses coverage settings and minimum/maximum keys to trigger replenishment at the right time. This is the purpose-built capability for the stated goal.

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Vendor Managed Inventory

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Inventory Visibility

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Demand Forecasting

Question 9

A distribution company uses Dynamics 365 Supply Chain Management. They notice that transportation costs are high across multiple carriers. Which module should they configure to optimize carrier selection and route planning?

Accepted Answer

Transportation Management. Transportation Management in Dynamics 365 Supply Chain Management is specifically designed to optimize carrier selection, route planning, and freight reconciliation. It provides tools for rating and routing, load planning, and carrier management, directly addressing high transportation costs. By configuring Transportation Management, the company can evaluate multiple carriers, select the most cost-effective options, and plan efficient routes, thereby reducing overall transportation expenses.

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Master Planning

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Warehouse Management

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Asset Management

Question 10

A food manufacturer uses Dynamics 365 Supply Chain Management. They need to ensure that raw materials are only used if they pass quality inspections. Which process should they implement?

Accepted Answer

Quality Management. D is correct because Dynamics 365 Supply Chain Management’s Quality Management module allows you to define quality orders and inspection criteria that block raw material consumption until the inspection is passed. By configuring item sampling, test instruments, and quality groups, the system ensures that inventory transactions (e.g., production picking) are prevented for materials that have not met the defined quality standards.

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Batch Attributes

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Nonconformance Management

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Inventory Statuses

Question 11

A company wants to use Dynamics 365 Supply Chain Management to manage supplier collaboration for purchase orders. Which portal should they enable?

Accepted Answer

Vendor Collaboration. In Dynamics 365 Supply Chain Management, the Vendor Collaboration portal is the feature that enables external vendors to interact with purchase orders, respond to RFQs, and view consignment inventory. It is specifically designed for supplier collaboration on procurement documents. Enabling this portal allows vendors to log in and perform actions on POs without direct access to the internal ERP system.

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Customer Self-Service

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Procurement and Sourcing

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Supplier Portal

Question 12

A warehouse receives a shipment and needs to put items away based on their velocity (fast-movers near shipping). Which warehouse strategy should they configure?

Accepted Answer

Directed Put-away. Directed put-away is a warehouse strategy where the system directs workers to specific storage locations based on rules such as item velocity, ensuring fast-moving items are placed near shipping areas to minimize travel time. This matches the requirement to put away items based on velocity. Replenishment, cycle counting, and cross-docking serve different purposes.

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Replenishment

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Cycle Counting

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Cross-docking

Question 13

A company wants to use Dynamics 365 Supply Chain Management to manage maintenance of production equipment. Which module should they use?

Accepted Answer

Asset Management. Asset Management is the correct module because it is specifically designed to manage the lifecycle of production equipment, including preventive, corrective, and predictive maintenance. It provides functionality for tracking assets, scheduling maintenance work orders, and recording costs. Quality Management focuses on product quality, Warehouse Management on inventory and logistics, and Production Control on manufacturing execution, not equipment maintenance.

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Quality Management

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Warehouse Management

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Production Control

Question 14

Which THREE are features of Dynamics 365 Supply Chain Management for quality control?

Accepted Answer

Nonconformance Management. Nonconformance Management (B) is a core quality control feature that lets you record, track, and resolve items or processes that fail to meet quality standards, including corrections and related costs. Quality Associations (D) define the conditions under which quality orders are automatically generated, such as for specific items, vendors, or receipt transactions. Quality Orders (E) are the actual inspection documents that specify tests, sample sizes, and acceptance criteria, and record pass/fail results against inventory. Costing Sheets (A) belong to cost accounting and are used to calculate item costs, not quality inspections, and Inventory Statuses (C) are used to control inventory availability and blocking, not to perform quality testing or nonconformance handling.

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Costing Sheets

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Inventory Statuses

Question 15

A warehouse uses Warehouse Management. The exhibit shows an inventory record. Which process would update the location for this license plate?

Accepted Answer

Warehouse Transfer. In Dynamics 365 Warehouse Management, a license plate (LPN) represents a physical container of inventory. Moving that license plate from one warehouse location to another is performed by a Warehouse Transfer (movement) process, which updates the location on the license plate record. This is the standard mechanism for relocating inventory within a warehouse.

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Sales Order Picking

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Cycle Counting

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Purchase Order Receipt