MB-920 Describe Dynamics 365 Supply Chain Management Practice Test 17 — 15 Questions

Question 1

A company uses Dynamics 365 Supply Chain Management to manage its warehouse operations. The warehouse manager wants to ensure that items are stored in specific locations based on their storage dimensions, such as 'HighVolume' and 'LowTurnover'. Which feature should be configured to automatically guide putaway operations?

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

Accepted Answer

Location directives. Location directives are the correct feature (Option A) because they define the rules that automatically determine where items are put away during warehouse operations, and they can be scoped by storage dimensions such as 'HighVolume' and 'LowTurnover' to guide putaway to the appropriate locations. In Dynamics 365 Supply Chain Management, a location directive evaluates a work order's item and warehouse criteria and then applies a query and location strategy to select the target location. Wave templates (Option B) are used to group and release sales or transfer order lines into waves for picking, not to determine putaway locations. Inventory statuses (Option C) control whether inventory is available, reserved, or blocked, but they do not route items to storage locations. Cycle counting plans (Option D) define how and when inventory is counted for accuracy checks, not where items are stored during putaway.

Answer

Wave templates

Answer

Inventory statuses

Answer

Cycle counting plans

Question 2

A logistics company uses Dynamics 365 Supply Chain Management to manage transportation. They want to use the built-in route planning to optimize delivery routes. Which module should they primarily use?

Accepted Answer

Transportation management. Transportation management in Dynamics 365 Supply Chain Management is the module specifically designed for planning, executing, and optimizing transportation operations, including route planning. It provides tools for load building, route scheduling, and rate shopping to optimize delivery routes. The built-in route planning capabilities, such as the Transportation management engine, are part of this module. Therefore, the logistics company should use Transportation management to achieve their goal.

Answer

Warehouse management

Answer

Production control

Answer

Inventory management

Question 3

A company uses Dynamics 365 Supply Chain Management to manage its warehouse operations. The warehouse manager wants to ensure that items are stored in specific locations based on their storage dimensions, such as 'HighVolume' and 'LowTurnover'. Which feature should be configured to automatically guide putaway operations?

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

Accepted Answer

Analyze and optimize location directive queries and indexes. Slow performance in the 'Release to warehouse' batch job is often caused by inefficient location directive queries that scan large datasets without proper indexes. Analyzing and optimizing the location directive queries and their indexes directly addresses the root cause of the bottleneck.

Answer

Disable location directives

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Increase the number of batch servers

Answer

Reduce the number of wave steps

Question 4

A company uses Dynamics 365 Supply Chain Management to manage its inventory across multiple warehouses. They want to transfer items between warehouses using a transfer order. Which process should they use to physically move the inventory?

Accepted Answer

Ship the transfer order from the source warehouse and receive it at the destination warehouse. To physically move inventory between warehouses in Dynamics 365 Supply Chain Management, the correct process is to ship the transfer order from the source warehouse and then receive it at the destination warehouse. This two-step process updates inventory quantities in both locations and creates the necessary inventory transactions to reflect the movement. Simply creating a transfer order without shipping and receiving does not change physical stock levels.

Answer

Perform an inventory counting journal

Answer

Create an inventory adjustment journal

Answer

Post a production consumption journal

Question 5

A company uses Dynamics 365 Supply Chain Management to manage vendor collaboration. They want vendors to view and respond to purchase orders directly in the system. Which portal or workspace should they enable?

Accepted Answer

Vendor collaboration workspace. The Vendor collaboration workspace in Dynamics 365 Supply Chain Management is specifically designed to allow vendors to view and respond to purchase orders, manage their profiles, and collaborate on other procurement activities. It provides a dedicated interface for external vendors.

Answer

Employee self-service

Answer

Customer portal

Answer

Self-service portal

Question 6

Which TWO features in Dynamics 365 Supply Chain Management can be used to manage inventory accuracy?

Accepted Answer

Inventory blocking. Inventory blocking (D) is correct because it lets you quarantine or freeze on-hand stock at a specific inventory status or location, preventing inaccurate or suspect quantities from being picked, reserved, or consumed until the discrepancy is resolved, which directly protects inventory accuracy. Cycle counting (E) is correct because it is the core periodic counting process in Dynamics 365 Supply Chain Management that compares counted quantities against system on-hand and posts adjustments, keeping recorded inventory aligned with physical stock. Wave templates (A) are wrong because they define how outbound picking/replenishment work is grouped and released, which affects warehouse throughput rather than the accuracy of recorded inventory. Location directives (B) are wrong because they are put-away/picking strategies that determine where items are placed or picked from, not a mechanism for verifying or correcting inventory quantities. Transportation management (C) is wrong because it handles inbound/outbound freight, carriers, and rate/route planning, which is unrelated to maintaining accurate on-hand inventory balances.

Answer

Wave templates

Answer

Location directives

Answer

Transportation management

Question 7

Which THREE components are part of the production control module in Dynamics 365 Supply Chain Management?

Accepted Answer

Bills of materials (BOMs). In Dynamics 365 Supply Chain Management, the production control module is built around the core manufacturing artifacts: Bills of materials (BOMs) (A) define the components and quantities required to produce an item, Routes (C) define the sequence of operations and resources needed, and Production orders (E) are the actual execution documents that combine a BOM and a route to manufacture a specific quantity. These three work together as the foundation of discrete and process manufacturing in the module. Purchase orders (B) belong to the Procurement and sourcing module, while Sales orders (D) belong to the Sales and marketing module, so neither is a production control component.

Answer

Purchase orders

Answer

Sales orders

Question 8

Which TWO capabilities are provided by the Warehouse management module in Dynamics 365 Supply Chain Management?

Accepted Answer

Wave processing. Wave processing (B) is a core Warehouse management capability: it groups outbound work into waves and drives picking, replenishment, and load building through wave templates and wave methods. Location directives (E) are also native to Warehouse management, using directive queries, work order types, and location profiles to determine put/pick locations for work. Production scheduling (A) belongs to master planning/production control, route planning for delivery (C) is Transportation management, and vendor collaboration (D) is a separate procurement/vendor portal feature, so they are not Warehouse management capabilities.

Answer

Production scheduling

Answer

Route planning for delivery

Answer

Vendor collaboration

Question 9

A manufacturing company uses Dynamics 365 Supply Chain Management. They notice that the inventory valuation for a specific item is inconsistent between the financial and operational reports. The item uses FIFO costing. What could be the most likely cause of this discrepancy?

Accepted Answer

The inventory close process has not been run for the period.. In Dynamics 365 Supply Chain Management, inventory valuation discrepancies between financial and operational reports for FIFO items are most commonly caused by the inventory close process not being run for the period. Inventory close settles transactions, adjusts cost amounts, and aligns the financial ledger with operational inventory values. Until close is executed, financial reports may reflect unadjusted or provisional costs, while operational reports show current quantities and receipts.

Answer

The item has batch attributes configured.

Answer

The item's inventory status is set to 'Blocked'.

Answer

The inventory recalculation was run incorrectly.

Question 10

A distribution company needs to automate the generation of purchase orders when inventory levels fall below a predefined threshold. Which feature in Dynamics 365 Supply Chain Management should be configured?

Accepted Answer

Replenishment rules. Replenishment rules in Dynamics 365 Supply Chain Management define minimum/maximum inventory thresholds and trigger automatic generation of purchase orders (or transfer orders) when stock falls below the minimum. This is exactly the automation the distribution company needs. Configuring min/max or safety stock on the item's coverage settings drives the master planning engine to create the POs.

Answer

Inventory visibility

Answer

Vendor collaboration

Answer

Batch balancing

Question 11

A company uses Dynamics 365 Supply Chain Management with advanced warehouse management. Workers are reporting that pick lines are being created with incorrect locations, causing delays. What could be the root cause?

Accepted Answer

Location directives are incorrectly configured.. Location directives in Dynamics 365 Supply Chain Management determine where inventory is picked from and put away. If they are incorrectly configured, the system will generate pick lines with wrong locations, causing delays. This is the root cause because location directives directly control the location selection logic during warehouse operations.

Answer

Mobile device menu items are set up incorrectly.

Answer

Wave templates are not assigned to the correct warehouse.

Answer

Work templates have the wrong work class.

Question 12

A company wants to ensure that quality inspections are performed on a random sample of incoming raw materials. Which feature should be configured in Dynamics 365 Supply Chain Management?

Accepted Answer

Quality orders with sampling plans. Quality orders with sampling plans in Dynamics 365 Supply Chain Management allow you to define a sampling plan (e.g., AQL or percentage-based) that determines how many items from a received batch are inspected. This directly supports random sampling of incoming raw materials for quality inspections.

Answer

Quarantine zones

Answer

Disposition codes

Answer

Nonconformance management

Question 13

A manufacturer uses Dynamics 365 Supply Chain Management's production control module. They want to record the actual labor hours spent on a production order. Which option should they use?

Accepted Answer

Production journals. In Dynamics 365 Supply Chain Management, production journals are the mechanism for recording actual consumption and time on a production order, including labor hours (route card journals, job card journals). The production journal captures feedback from the shop floor about time, quantity, and materials actually used. Route operations define what work must be done, but the journal records what was actually done.

Answer

BOM versions

Answer

Route operations

Answer

Resource groups

Question 14

A company uses Dynamics 365 Supply Chain Management to manage multi-site operations. They need to transfer inventory between two warehouses in different legal entities. What is the correct approach?

Accepted Answer

Use intercompany order processing to create a purchase order and sales order.. Intercompany order processing is the correct approach for transferring inventory between warehouses in different legal entities. It creates a purchase order in the receiving company and a sales order in the sending company, properly recording the transaction across legal entities. Option A is incorrect because inventory adjustment journals do not track intercompany transfers and are meant for internal adjustments. Option B is incorrect because transfer orders are only valid within a single legal entity. Option C is incorrect because a purchase order alone does not create the corresponding sales order needed for intercompany accounting.

Answer

Use an inventory adjustment journal to reduce stock in one warehouse and increase in the other.

Answer

Create a transfer order between the two warehouses.

Answer

Create a purchase order from the receiving warehouse to the sending warehouse.

Question 15

Which TWO features in Dynamics 365 Supply Chain Management are used to manage product quality?

Accepted Answer

Nonconformance management. Nonconformance management (C) is correct because it is the core quality feature used to record, track, and resolve problems where products or processes fail to meet quality standards, including the associated corrections and dispositions. Quality control (quality orders) (D) is correct because quality orders define the tests, measurements, and sampling that must be performed on items, and they drive the inspection process and pass/fail decisions in Supply Chain Management. Vendor collaboration (A) is not a quality feature; it is used for sharing purchase order and vendor-related information with external suppliers. Batch balancing (B) is a warehouse/inventory process for adjusting batch quantities and reservations, not for managing quality. Inventory status (E) is used to control the availability and blocking of inventory, but it is not itself a quality management feature.

Answer

Vendor collaboration

Answer

Batch balancing

Answer

Inventory status