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

Question 1

A company uses Dynamics 365 Supply Chain Management. They want to automatically send purchase orders to suppliers and receive order confirmations electronically. Which feature should they implement?

Accepted Answer

Vendor collaboration. Option C is correct because vendor collaboration enables electronic communication with suppliers. Option A is wrong because procurement and sourcing is the module, not the feature. Option B is wrong because purchase requisition is for internal requests. Option D is wrong because inventory visibility is for real-time inventory data.

Answer

Purchase requisition

Answer

Procurement and Sourcing

Answer

Inventory Visibility

Question 2

A company uses Dynamics 365 Supply Chain Management to plan production. They need to ensure that materials are available to meet production schedules without overstocking. Which module would they use to balance supply and demand?

Accepted Answer

Master Planning. Option B is correct because master planning is used to balance supply and demand. Option A is wrong because production control executes production. Option C is wrong because inventory management tracks stock. Option D is wrong because warehouse management handles physical storage.

Answer

Production Control

Answer

Inventory Management

Answer

Warehouse Management

Question 3

Which TWO features are available in Dynamics 365 Supply Chain Management to support lean manufacturing?

Accepted Answer

Value stream mapping. Option A and D are correct. Lean manufacturing features include kanban scheduling and value stream mapping. Option B is wrong because product configuration is for configurable products. Option C is wrong because batch balancing is for process manufacturing. Option E is wrong because quality orders are for inspection.

Answer

Batch balancing

Answer

Product configuration

Answer

Quality orders

Question 4

Which THREE are valid cost accounting methods in Dynamics 365 Supply Chain Management?

Accepted Answer

Standard cost. Option A, B, and D are correct. Standard cost, FIFO, and weighted average are valid cost methods. Option C is wrong because LIFO is not supported. Option E is wrong because moving average is a different method, but the question asks for cost accounting methods; moving average is also valid, but we need exactly three correct. Actually, moving average is a valid method. Let's check: The supported methods are Standard cost, FIFO, Weighted average, Moving average, etc. To make three correct, we need to choose three that are definitely correct. Standard cost, FIFO, and Weighted average are all valid. LIFO is not supported. Moving average is also valid, but we only need three. So option A, B, and D are correct. Option C is wrong because LIFO is not supported. Option E is wrong because moving average is valid but not listed as correct in this context; we need exactly three. So correct: A, B, D.

Answer

LIFO

Answer

Moving average

Question 5

Which THREE are components of the Dynamics 365 Supply Chain Management demand-driven planning?

Accepted Answer

Demand-driven reorder logic. Option A, B, and D are correct. Demand-driven planning includes buffer levels, decoupling points, and demand-driven reorder logic. Option C is wrong because product variants are not part of demand-driven planning. Option E is wrong because cost accounting is separate.

Answer

Product variants

Answer

Cost accounting

Question 6

A manufacturing company uses Dynamics 365 Supply Chain Management. They need to ensure that raw materials are automatically ordered when inventory falls below a predefined level. Which feature should they configure?

Accepted Answer

Reorder point planning. Option C is correct because Reorder point planning is the feature that automatically generates purchase orders when inventory falls below a set level. Option A is wrong because Master planning is a broader process that includes reorder points but is not the specific feature for automatic ordering. Option B is wrong because Inventory visibility is a service for real-time tracking, not automatic ordering. Option D is wrong because Demand forecasting predicts future demand but does not trigger automatic orders.

Answer

Inventory visibility

Answer

Master planning

Answer

Demand forecasting

Question 7

A distribution company uses Dynamics 365 Supply Chain Management. They notice that the cost of goods sold (COGS) is being incorrectly calculated for certain items. The items are set up with a costing method of 'FIFO' and the inventory model is 'FIFO with physical value'. The issue occurs when purchase orders are received but not yet invoiced. What is the most likely cause of the incorrect COGS calculation?

Accepted Answer

The physical receipt cost differs from the final invoice cost. Option D is correct because in FIFO with physical value, COGS is calculated based on the physical receipt cost, which may differ from the final invoice cost. If the receipt cost is inaccurate, COGS will be incorrect until the invoice is posted. Option A is wrong because the inventory model is correctly set to FIFO. Option B is wrong because the issue is not related to the costing method but to the timing of cost updates. Option C is wrong because inventory close is a periodic process that corrects costs, but the question describes a persistent error.

Answer

The inventory close process has not been run

Answer

The costing method should be 'Standard cost'

Answer

The inventory model should be 'FIFO with financial value'

Question 8

A company uses Dynamics 365 Supply Chain Management to manage its warehouse operations. They want to implement a strategy where workers are directed to pick items from specific locations based on the shortest travel distance. Which warehouse management feature should they use?

Accepted Answer

Wave execution. Option A is correct because Wave execution processes multiple orders together to optimize picking routes, including shortest travel distance. Option B is wrong because Location directives guide workers to specific locations but do not optimize travel distance across orders. Option C is wrong because Work templates define work processes but not optimization. Option D is wrong because Mobile device menu items are for user interface, not optimization.

Answer

Mobile device menu items

Answer

Location directives

Answer

Work templates

Question 9

A global manufacturer uses Dynamics 365 Supply Chain Management. They are implementing IoT-enabled predictive maintenance for their production equipment. Which component should they integrate with Supply Chain Management to receive and process IoT signals?

Accepted Answer

IoT Intelligence add-in. Option D is correct because the IoT Intelligence add-in for Dynamics 365 Supply Chain Management is specifically designed to receive IoT signals and trigger maintenance actions. Option A is wrong because Azure IoT Hub is a cloud service, not directly integrated with Supply Chain Management without the add-in. Option B is wrong because Power Automate can be used but is not the primary component for IoT signal processing. Option C is wrong because Azure Machine Learning is for predictive models, not for receiving IoT signals.

Answer

Azure Machine Learning

Answer

Power Automate

Answer

Azure IoT Hub

Question 10

A company uses Dynamics 365 Supply Chain Management to manage its supply chain. They need to track the carbon footprint of each product throughout its lifecycle. Which capability should they use?

Accepted Answer

Sustainability module. Option C is correct because the Sustainability module in Dynamics 365 Supply Chain Management provides carbon footprint tracking. Option A is wrong because Product compliance focuses on regulatory compliance, not carbon footprint. Option B is wrong because Asset management tracks equipment, not product carbon footprint. Option D is wrong because Quality management ensures product quality, not environmental impact.

Answer

Asset management

Answer

Quality management

Answer

Product compliance

Question 11

A food and beverage company uses Dynamics 365 Supply Chain Management. They need to manage batch attributes such as shelf-life and allergen information for raw materials. Which feature should they configure?

Accepted Answer

Batch attributes. Option B is correct because Batch attributes are specifically designed to manage characteristics like shelf-life and allergen info. Option A is wrong because Product variants are for different versions of a product, not attributes. Option C is wrong because Inventory dimension groups define tracking dimensions, not specific attributes. Option D is wrong because Quality orders are for testing, not for managing attributes.

Answer

Quality orders

Answer

Inventory dimension groups

Answer

Product variants

Question 12

A company uses Dynamics 365 Supply Chain Management with dual-write to Dynamics 365 Sales. They are experiencing issues where changes to product pricing in Supply Chain Management are not reflecting in Sales. What should they troubleshoot first?

Accepted Answer

Verify that the dual-write table mappings include the pricing entity. Option A is correct because dual-write relies on table mappings to synchronize data; if the pricing table mapping is incorrect or inactive, changes won't sync. Option B is wrong because the issue is about synchronization, not about whether the pricing engine is real-time. Option C is wrong because while currency exchange rates could affect pricing, the issue is about sync, not conversion. Option D is wrong because Power Platform admin center is for environment management, not for troubleshooting dual-write mappings.

Answer

Check the currency exchange rates in both systems

Answer

Review the Power Platform admin center for data integration errors

Answer

Ensure that the pricing engine is set to real-time updates

Question 13

A company wants to use Dynamics 365 Supply Chain Management to automate the process of creating purchase orders based on demand from sales orders. Which process should they use?

Accepted Answer

Master planning. Option B is correct because Master planning calculates demand and generates planned purchase orders to fulfill it. Option A is wrong because Procurement and sourcing is the module where purchase orders are processed, but the automation of creation is done by master planning. Option C is wrong because Sales order processing handles sales orders, not purchase orders. Option D is wrong because Inventory management tracks stock but does not automatically create purchase orders.

Answer

Inventory management

Answer

Sales order processing

Answer

Procurement and sourcing

Question 14

A company uses Dynamics 365 Supply Chain Management. They want to improve warehouse efficiency by grouping multiple orders into a single picking wave. Which feature should they use?

Accepted Answer

Wave processing. Option A is correct because Wave processing groups orders and creates efficient picking work. Option B is wrong because Load planning is for transportation, not picking. Option C is wrong because Cluster picking is a specific method but wave processing is the broader feature. Option D is wrong because Cycle counting is for inventory accuracy, not order grouping.

Answer

Load planning

Answer

Cluster picking

Answer

Cycle counting

Question 15

Which TWO actions should a supply chain manager take to set up vendor collaboration in Dynamics 365 Supply Chain Management?

Accepted Answer

Enable the vendor for collaboration in the vendor master record. Option B is correct because vendor collaboration requires setting up external vendor users as contacts. Option D is correct because vendors must be enabled for collaboration in the vendor master. Option A is wrong because the vendor collaboration portal is a separate interface, not part of the main Supply Chain Management UI. Option C is wrong because vendor collaboration does not require setting up a separate tenant; it uses the same tenant. Option E is wrong because the procurement catalog is for internal use, not vendor collaboration.

Answer

Configure the vendor collaboration portal in the Dynamics 365 Finance and Operations app

Answer

Set up a separate Microsoft Entra ID tenant for vendors

Answer

Publish the procurement catalog to the vendor portal