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

Question 1

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 2

A company uses Dynamics 365 Supply Chain Management. They need to track inventory by batch number and expiration date. How should they configure the product?

Accepted Answer

Assign a storage dimension group that includes batch and expiration date. Storage dimension groups include batch and expiration date. Option A is correct. Option B is for tracking dimensions like serial numbers. Option C is for product categories. Option D is for warehouse management.

Answer

Enable warehouse management only

Answer

Assign a tracking dimension group that includes batch and expiration date

Answer

Configure the item's product category

Question 3

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

Accepted Answer

Receive purchase orders. The mobile app supports cycle counting and purchase order receiving. Option A (cycle counting) and Option C (purchase order receiving) are correct. Option B is done in the client. Option D is an external tool. Option E is not available in the app.

Answer

Create sales orders

Answer

Generate advanced shipping notices

Answer

Run master planning

Question 4

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

Accepted Answer

LIFO. Item model groups include FIFO, LIFO, and Weighted average. Option A (FIFO), Option B (LIFO), and Option D (Weighted average) are correct. Option C is a costing method, not a model group. Option E is a cost flow assumption, not a group.

Answer

Moving average

Answer

Standard cost

Question 5

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

Accepted Answer

Real-time asset tracking. IoT integration enables predictive maintenance and real-time asset tracking. Option A and Option D are correct. Option B is for analytics. Option C is for finance. Option E is for procurement.

Answer

Real-time customer credit check

Answer

Vendor negotiation

Answer

Automated financial closing

Question 6

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 order is approved, but open lines mean no receipt has been posted. Option D is correct. Option A is wrong because confirmed does not mean completed. Option B is wrong because lines are open. Option C is wrong because open lines do not mean invoiced.

Answer

The purchase order is pending approval

Answer

The purchase order is fully invoiced

Answer

The purchase order is fully received

Question 7

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. Option B is correct. Option A is for automatic consumption. Option C is not required. Option D is for scheduling.

Answer

The system automatically consumes raw materials

Answer

The order must be scheduled again

Answer

The order must be estimated

Question 8

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 shipment, the receiving warehouse must register the receipt. Option C is correct. Option A is already done. Option B is for shipment. Option D is not standard.

Answer

Ship the order again

Answer

Delete the transfer order

Answer

Create a new transfer order

Question 9

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. Option C is correct because master planning is responsible for generating planned orders (including work orders) based on demand and inventory levels. Option A is wrong because quality management does not trigger automatic replenishment. Option B is wrong because product configuration is for configurable products, not inventory replenishment. Option D is wrong because production control executes work orders but does not generate them automatically.

Answer

Product configuration model

Answer

Production control parameters

Answer

Quality management configuration

Question 10

A company uses Dynamics 365 Supply Chain Management to manage warehouse operations. They want to ensure that workers are guided step-by-step during the picking process using mobile devices. Which feature should they implement?

Accepted Answer

Warehouse Management. Option A is correct because the Warehouse Management module provides guided processes for mobile device users. Option B is wrong because Inventory Management focuses on stock levels, not guided picking. Option C is wrong because Production Control is for manufacturing execution. Option D is wrong because Transport Management handles shipping and freight.

Answer

Transport Management

Answer

Inventory Management

Answer

Production Control

Question 11

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. Option B is correct because product variants allow different BOMs per variant. Option A is wrong because product masters with constraint-based configuration are for configurable products with many options. Option C is wrong because BOM versions are used for different production dates, not variants. Option D is wrong because catch weight is for weight-controlled items.

Answer

Single product with multiple BOM versions

Answer

Product master with constraint-based configuration

Answer

Catch weight product

Question 12

A company uses Dynamics 365 Supply Chain Management. They want to ensure that when a purchase order is received, the system automatically creates a quality order for inspection. Which configuration is required?

Accepted Answer

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

Answer

Set inventory status to blocking

Answer

Configure nonconformance management

Answer

Define item sampling for the product

Question 13

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. Option B is correct because the Transportation Management module is designed to manage shipping, freight, and logistics optimization. Option A is wrong because Warehouse Management focuses on internal warehouse operations. Option C is wrong because Master Planning handles supply and demand planning. Option D is wrong because Procurement and Sourcing manages purchasing.

Answer

Procurement and Sourcing

Answer

Master Planning

Answer

Warehouse Management

Question 14

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. Option D is correct because inventory visibility services provide real-time inventory data to external systems. Option A is wrong because inventory journal functionality is for internal adjustments. Option B is wrong because warehouse mobile app is for warehouse workers. Option C is wrong because master planning is for internal planning.

Answer

Master planning

Answer

Inventory journals

Answer

Warehouse mobile app

Question 15

A company manufactures high-value equipment and needs to track each individual item's location, status, and service history throughout its lifecycle. Which capability should they use?

Accepted Answer

Asset Management. Option A is correct because asset management tracks equipment lifecycle, location, and service history. Option B is wrong because product configuration is for variant creation. Option C is wrong because batch tracking is for lot-controlled items. Option D is wrong because warehouse management focuses on storage and picking.

Answer

Warehouse Management

Answer

Batch tracking

Answer

Product configuration