MB-920 Describe Dynamics 365 Supply Chain Management Practice Test 18 — 15 Questions

Question 1

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. Enabling the vendor for collaboration in the vendor master record is a necessary step to allow that vendor to participate in collaboration. Option E is correct because adding vendor users as external contacts in the system is required to give them access to the vendor collaboration portal. Option A is incorrect because configuring the vendor collaboration portal is typically an IT or administrative task and not the primary action for a supply chain manager. Option B is incorrect because vendor collaboration does not require a separate Microsoft Entra ID tenant; vendors use their own credentials. Option D is incorrect because publishing the procurement catalog is an optional step and not required to set up 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

Question 2

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

Accepted Answer

Wave processing. Wave processing is a core warehouse management capability. Option D is correct because mobile device menu items enable warehouse workers to perform tasks. Option E is correct because location directives guide put-away and picking. Option B is incorrect because vendor collaboration portal is a procurement feature, not part of warehouse management. Option C is incorrect because route planning for outbound shipments belongs to Transportation management, not warehouse management.

Answer

Vendor collaboration portal

Answer

Route planning for outbound shipments

Question 3

Which TWO benefits does the Asset management module in Dynamics 365 Supply Chain Management provide?

Accepted Answer

Preventive maintenance scheduling. Options C and E are correct. Preventive maintenance scheduling (C) allows organizations to plan and perform maintenance based on time or usage intervals, reducing unplanned downtime. Maintenance history tracking (E) provides a complete record of all maintenance activities, costs, and parts used, enabling better asset lifecycle management. Option A is incorrect because automated warranty claims processing is not a feature of the Asset management module; warranty management is handled elsewhere. Option B is incorrect because vendor performance analysis is part of Procurement or Vendor management, not Asset management. Option D is incorrect because demand forecasting is part of Master planning or Demand forecasting modules.

Answer

Automated warranty claims processing

Answer

Vendor performance analysis

Answer

Demand forecasting

Question 4

Contoso Ltd. is a global electronics manufacturer using Dynamics 365 Supply Chain Management. They have three production sites: Seattle (primary), Chicago, and Atlanta. Currently, all sites use manual picking processes. Contoso wants to implement warehouse management system (WMS) functionality to improve efficiency. The Seattle site is already using WMS, but the other two sites are not. The project requires minimal disruption to ongoing operations. The IT team is considering three approaches: (1) Enable WMS for all sites simultaneously after a weekend cutover, (2) Enable WMS for Chicago first, then Atlanta after one month, and (3) Enable WMS only for Seattle and keep others manual. The warehouse manager is concerned about training workers on mobile devices. What is the best course of action?

Accepted Answer

Enable WMS for Chicago first, then Atlanta after one month, using lessons learned from Chicago.. Enable WMS for Chicago first, then Atlanta after one month, using lessons learned from Chicago. This phased approach minimizes disruption, allows for training and process adjustments, and aligns with best practices for warehouse management implementation. Option A is incorrect because limiting WMS to Seattle does not improve efficiency at other sites. Option B is incorrect because enabling WMS for all sites simultaneously is risky and could cause major operational disruption. Option D is incorrect because reverting Seattle to manual picking is counterproductive and does not leverage existing WMS investment.

Answer

Keep WMS only for Seattle and continue manual picking at Chicago and Atlanta to avoid training costs.

Answer

Enable WMS for all sites simultaneously during a weekend cutover to standardize processes quickly.

Answer

Revert Seattle to manual picking to maintain consistency across all sites.

Question 5

A manufacturing company uses Dynamics 365 Supply Chain Management. They want to ensure that raw materials are available for production without overstocking. Which feature should they use to calculate material requirements based on production schedules?

Accepted Answer

Master planning. Master planning calculates material and capacity requirements based on production schedules and demand, ensuring raw materials are available without overstocking. Option A (Master planning) is correct. Option B (Inventory on-hand report) only shows current stock levels and does not plan future needs. Option C (Asset management) focuses on equipment maintenance, not material planning. Option D (Quality management) ensures product quality, not material requirements.

Answer

Inventory on-hand report

Answer

Asset management

Answer

Quality management

Question 6

A company uses Dynamics 365 Supply Chain Management and wants to implement a strategy where products are stored at multiple warehouse locations, but picking is optimized by consolidating orders from the nearest location to the customer. Which configuration supports this?

Accepted Answer

Set up multi-site warehouse management and use location directives. Multi-site warehouse management with location directives allows routing of picking to the nearest warehouse based on distance or zone. Option A is correct because location directives can be configured to prioritize picking from the warehouse closest to the customer's ship-to address. Option B (Vendor-managed inventory) is a supplier strategy, not internal optimization. Option C (Transfer orders) moves stock between warehouses but does not automatically optimize picking across sites. Option D (Single warehouse with multiple zones) stores products within one physical location and cannot consolidate orders across different sites.

Answer

Implement vendor-managed inventory for all products

Answer

Use transfer orders to move stock between warehouses

Answer

Configure a single warehouse with multiple zones

Question 7

A company uses Dynamics 365 Supply Chain Management and wants to track a product's entire lifecycle from raw material to finished good and through to customer delivery. Which feature should they use?

Accepted Answer

Product traceability (batch/serial tracking). Product traceability (batch/serial tracking) enables tracking of items from raw material through production to customer delivery. Option A (Bill of materials) defines product structure but does not track movement. Option C (Route management) defines production steps but not traceability. Option D (Inventory aging report) shows stock aging but not full traceability.

Answer

Bill of materials (BOM)

Answer

Route management

Answer

Inventory aging report

Question 8

A company uses Dynamics 365 Supply Chain Management and wants to automate the replenishment of items based on historical demand and predefined minimum stock levels. Which feature should they configure?

Accepted Answer

Replenishment rules. Replenishment rules in warehouse management allow automatic replenishment based on demand and min/max levels. Option A (Replenishment rules) is correct. Option B (Safety stock journal) is for manual adjustments to safety stock. Option C (Forecast scheduling) is part of master planning, not specifically warehouse replenishment. Option D (Cycle counting) is for inventory accuracy.

Answer

Safety stock journal

Answer

Forecast scheduling

Answer

Cycle counting

Question 9

A company uses Dynamics 365 Supply Chain Management and wants to ensure that when a sales order is created, the system automatically checks if there is enough inventory to fulfill it. If not, the order should be placed on hold until the required materials are available. Which feature should they use?

Accepted Answer

Available-to-Promise (ATP) with inventory reservation. ATP (Available-to-Promise) with inventory reservation checks inventory availability in real-time when a sales order is created. If sufficient inventory is not available, the system can automatically place the order on hold until the required materials become available. Option A (Inbound load planning) focuses on receiving inbound shipments, not sales order availability. Option C (Transfer order status) manages internal transfer orders, not direct sales order fulfillment. Option D (Quality orders) is about quality control processes, not inventory availability.

Answer

Inbound load planning

Answer

Transfer order status

Answer

Quality orders

Question 10

A company uses Dynamics 365 Supply Chain Management and wants to manage the procurement of raw materials from multiple suppliers. They need to compare supplier prices, lead times, and quality ratings before selecting a vendor. Which module should they use?

Accepted Answer

Procurement and sourcing. Procurement and sourcing manages supplier information, requests for quotations, and vendor comparisons. Option A (Production control) is for manufacturing. Option B (Sales and marketing) is for selling. Option C (Inventory management) focuses on stock, not procurement. Option D (Procurement and sourcing) is the correct module for managing raw material procurement and supplier comparison.

Answer

Production control

Answer

Sales and marketing

Answer

Inventory management

Question 11

A company uses Dynamics 365 Supply Chain Management and wants to optimize warehouse operations by grouping similar items together to reduce travel time for pickers. Which configuration should they use?

Accepted Answer

Warehouse zone groups. Warehouse zone groups allow items to be grouped together in zones based on characteristics like size, velocity, or storage requirements, which reduces travel time for pickers. Option A is correct. Option B (Product filter codes) is used for filtering products in processes like picking or receiving, not for warehouse layout optimization. Option C (Item coverage group) is used for planning replenishment and safety stock. Option D (Batch attributes) are used for batch tracking and quality management.

Answer

Product filter codes

Answer

Item coverage group

Answer

Batch attributes

Question 12

A company uses Dynamics 365 Supply Chain Management and wants to implement a policy that prevents picking of expired or near-expiry inventory for customer orders. The system should automatically block such inventory from being reserved. Which feature should they use?

Accepted Answer

Quality orders with expiration date control. Quality orders with expiration date control allow the system to automatically block inventory that is expired or near expiry from being reserved or picked. This feature uses expiration date control settings to trigger quality orders that prevent picking of such inventory. Option A (Inventory status) can manually block inventory but does not automatically use expiration dates. Option B (Location profiles) manage warehouse locations but do not enforce expiration-based blocking. Option D (Item model groups) control costing methods and inventory models, not expiration date enforcement.

Answer

Inventory status

Answer

Location profiles

Answer

Item model groups

Question 13

A company uses Dynamics 365 Supply Chain Management and needs to track the cost of goods sold (COGS) using a method that assumes the most recently produced items are sold first. Which inventory costing method should they use?

Accepted Answer

LIFO (Last In, First Out). LIFO (Last In, First Out) assumes the last items produced are sold first. Option B is correct. Option A (Standard cost) uses predetermined costs. Option C (Weighted average) uses an average cost. Option D (FIFO) assumes first items produced are sold first.

Answer

Standard cost

Answer

Weighted average

Answer

FIFO (First In, First Out)

Question 14

Which TWO features in Dynamics 365 Supply Chain Management can be used to improve warehouse picking efficiency?

Accepted Answer

Mobile device menu configuration for scanning. Mobile device menu configuration enables efficient scanning and picking by allowing workers to use handheld scanners. Cluster picking allows picking multiple orders in one trip, reducing travel time. Cycle counting is for inventory accuracy, not picking efficiency. Wave processing groups orders for shipping, not directly for picking. Location profiles manage storage configurations, not picking. Therefore, the correct options are A and E.

Answer

Cycle counting

Answer

Wave processing

Answer

Location profiles

Question 15

Which THREE components are part of the Dynamics 365 Supply Chain Management warehouse management system?

Accepted Answer

Mobile device menu items. Warehouse management includes location directives, work templates, and mobile device menu items. Production orders are part of production control, not warehouse management. Transfer orders are in inventory management. Correct: B, D, E.

Answer

Production orders

Answer

Transfer orders