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

Question 1

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. Asset Management (also known as Fixed Asset Management) is designed to track equipment lifecycle, location, and service history for individual high-value items. Option A is incorrect because Warehouse Management focuses on storage and picking of inventory, not asset lifecycle. Option B is incorrect because Batch tracking is intended for lot-controlled items, not individual equipment tracking. Option D is incorrect because Product configuration is used to define variants of a product, not to track service history.

Answer

Warehouse Management

Answer

Batch tracking

Answer

Product configuration

Question 2

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. Vendor collaboration because it enables electronic communication with suppliers, allowing automatic transmission of purchase orders and receipt of order confirmations. Option B is incorrect because purchase requisition is used for internal requests, not external supplier communication. Option C is incorrect because Procurement and Sourcing is a broader module that includes vendor collaboration but is not the specific feature for this purpose. Option D is incorrect because Inventory Visibility provides real-time inventory data, not supplier communication.

Answer

Purchase requisition

Answer

Procurement and Sourcing

Answer

Inventory Visibility

Question 3

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. Master Planning. Master Planning is used to balance supply and demand by calculating material requirements based on production schedules, ensuring materials are available without overstocking. Option A (Production Control) is incorrect because it focuses on executing and managing production orders, not planning material availability. Option B (Inventory Management) is incorrect because it tracks and manages stock levels, but does not perform supply-demand balancing calculations. Option C (Warehouse Management) is incorrect because it handles physical storage and movement of goods, not supply planning.

Answer

Production Control

Answer

Inventory Management

Answer

Warehouse Management

Question 4

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

Accepted Answer

Value stream mapping. Options B and E are correct because Value stream mapping and Kanban scheduling are key features of lean manufacturing in Dynamics 365 Supply Chain Management. Option A (Batch balancing) is used in process manufacturing, not lean. Option C (Product configuration) is for configurable products, not lean. Option D (Quality orders) are for quality inspections, not a lean manufacturing feature.

Answer

Batch balancing

Answer

Product configuration

Answer

Quality orders

Question 5

Which of the following are valid cost accounting methods in Dynamics 365 Supply Chain Management? (Select all that apply.)

Accepted Answer

Standard cost. All five options are valid cost accounting methods in Dynamics 365 Supply Chain Management. Standard cost, LIFO, moving average, weighted average, and FIFO are all supported inventory costing methods. Therefore, select all options.

Question 6

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

Accepted Answer

Demand-driven reorder logic. Options B, C, and E are correct. Demand-driven planning includes buffer levels (C), decoupling points (E), and demand-driven reorder logic (B). Option A is incorrect because product variants are a product configuration concept, not a component of demand-driven planning. Option D is incorrect because cost accounting is a separate financial function, not part of demand-driven planning.

Answer

Product variants

Answer

Cost accounting

Question 7

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. Reorder point planning is the feature that automatically generates purchase orders when inventory falls below a set level. Option A is wrong because Inventory visibility is a service for real-time tracking, not automatic ordering. Option B is wrong because Master planning is a broader process that includes reorder points but is not the specific feature for 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 8

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. In a FIFO costing method with 'FIFO with physical value' model, COGS is calculated based on the physical receipt cost until the invoice is posted. If the physical receipt cost differs from the final invoice cost, the COGS will be temporarily incorrect until the invoice is updated. Option A is incorrect because running inventory close would correct costs after invoicing, but the issue here is a timing difference before invoicing. Option B is incorrect because standard cost is a different costing method not related to the FIFO setup. Option D is incorrect because 'FIFO with financial value' would change when costs are updated, but the current model 'FIFO with physical value' is appropriate for the described behavior.

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 9

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. Wave execution optimizes the picking process by grouping multiple orders and directing workers to pick items from locations that minimize travel distance, often using shortest-path algorithms. Option A is incorrect because Mobile device menu items define what tasks workers see on their devices but do not inherently optimize travel distance. Option B is incorrect because Location directives determine the specific locations from which items should be picked, but they do not optimize travel distance across orders. Option C is incorrect because Work templates define the structure and steps of work, not the optimization of travel distance.

Answer

Mobile device menu items

Answer

Location directives

Answer

Work templates

Question 10

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. 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 Machine Learning is a platform for building predictive models, but it does not directly receive IoT signals; it requires a data pipeline to ingest data. Option B is wrong because Power Automate can be used to automate workflows but is not the primary component for receiving and processing IoT signals. Option C is wrong because Azure IoT Hub is a cloud service for ingesting IoT data, but it is not directly integrated with Supply Chain Management without the IoT Intelligence add-in.

Answer

Azure Machine Learning

Answer

Power Automate

Answer

Azure IoT Hub

Question 11

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

Answer

Asset management

Answer

Quality management

Answer

Product compliance

Question 12

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. Batch attributes are specifically designed to manage characteristics like shelf-life and allergen information for raw materials. Option B is wrong because Quality orders are used for testing and quality control, not for managing batch attributes. Option C is wrong because Inventory dimension groups define tracking dimensions (e.g., site, warehouse), not specific batch attributes. Option D is wrong because Product variants are for different versions of a product, not for managing attributes like shelf-life or allergens.

Answer

Quality orders

Answer

Inventory dimension groups

Answer

Product variants

Question 13

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. Dual-write relies on table mappings to synchronize data between Dynamics 365 applications. If the mapping for the pricing entity is not included or is inactive, changes to pricing in Supply Chain Management will not be reflected in Sales. Option A is incorrect because currency exchange rates are unrelated to the synchronization of pricing data; they affect currency conversion, not data sync. Option B is incorrect because while the Power Platform admin center can show data integration errors, the first step is to verify that the necessary table mappings exist. Option D is incorrect because the pricing engine's real-time setting is not related to dual-write synchronization; the issue is about the mapping configuration.

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 14

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. Master planning calculates demand from sales orders and generates planned purchase orders to fulfill that demand. Option B is wrong because Inventory management tracks stock levels but does not automatically create purchase orders. Option C is wrong because Sales order processing handles sales orders, not purchase orders. Option D is wrong because Procurement and sourcing processes purchase orders, but the automation of creation is done by master planning.

Answer

Inventory management

Answer

Sales order processing

Answer

Procurement and sourcing

Question 15

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. 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