MB-920 Describe Dynamics 365 Supply Chain Management Practice Test 19 — 15 Questions

Question 1

A company uses Dynamics 365 Supply Chain Management and wants to implement a process where products are tracked from raw material to finished goods using unique identifiers. Which feature should they enable to achieve this?

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

Accepted Answer

Serial number tracking. Serial number tracking assigns a unique identifier to each individual unit, enabling full traceability from raw material through finished goods. This is exactly what the scenario requires for tracking products with unique identifiers. Batch tracking, by contrast, tracks groups of items rather than individual units.

Answer

Batch tracking

Answer

Product configuration

Answer

Catch weight

Question 2

A manufacturer uses Dynamics 365 Supply Chain Management and wants to improve demand forecasting accuracy by incorporating external data such as weather and economic indicators. Which module should they use?

Accepted Answer

Demand forecasting. The Demand forecasting module in Dynamics 365 Supply Chain Management is specifically designed to generate and manage demand forecasts, and it supports incorporating external signals such as weather and economic indicators via Azure Machine Learning. This module is where forecast models are trained and forecast entries are produced for master planning. Using it directly addresses the requirement to improve accuracy with external data.

Answer

Master planning

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Product information management

Answer

Inventory management

Question 3

A company is evaluating Dynamics 365 Supply Chain Management for its complex manufacturing process that involves both discrete and process manufacturing. Which capability should they use to handle the co-products and by-products generated during production?

Accepted Answer

Process manufacturing. Process manufacturing in Dynamics 365 Supply Chain Management is designed for formula-based production where co-products and by-products are generated. It supports batch orders, formulas, and the ability to define and cost co-products and by-products that result from a production process.

Answer

Lean manufacturing

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Product configuration

Answer

Discrete manufacturing

Question 4

A logistics company wants to use Dynamics 365 Supply Chain Management to track transportation costs and optimize routing. Which module should they implement?

Accepted Answer

Transportation management. Transportation management in Dynamics 365 Supply Chain Management is the module purpose-built for planning, executing, and tracking inbound and outbound shipments, including carrier rate shopping, route optimization, and freight cost tracking. It directly addresses the logistics company's need to track transportation costs and optimize routing.

Answer

Sales and marketing

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Warehouse management

Answer

Procurement and sourcing

Question 5

A company using Dynamics 365 Supply Chain Management notices that inventory accuracy is low due to manual data entry errors. Which feature can help automate data capture and improve accuracy?

Accepted Answer

Warehouse mobile devices. Warehouse mobile devices allow barcode scanning to automate data entry, reducing manual errors and improving inventory accuracy. Option B is wrong because Quality management is used for inspections, not automated data capture. Option C is wrong because Inventory counting is a manual process that does not inherently automate data capture. Option D is wrong because Vendor collaboration involves external communication, not automated data capture.

Answer

Quality management

Answer

Inventory counting

Answer

Vendor collaboration

Question 6

A manufacturer wants to implement a pull-based production system where work cells signal upstream processes when they need more parts. Which Dynamics 365 Supply Chain Management feature should they use?

Accepted Answer

Kanban boards. Kanban boards in Dynamics 365 Supply Chain Management enable a pull-based production system where downstream work cells signal upstream processes when they need more parts, aligning with lean manufacturing principles. Option A (Production orders) is incorrect because they are typically used in push-based discrete manufacturing. Option B (Master planning) is incorrect as it is a push-based planning approach. Option C (Batch orders) is incorrect because they are designed for process manufacturing, not pull signaling.

Answer

Production orders

Answer

Master planning

Answer

Batch orders

Question 7

A retail company uses Dynamics 365 Supply Chain Management and wants to ensure that products are available at the right locations to meet customer demand without overstocking. Which planning method should they use?

Accepted Answer

Replenishment planning. Replenishment planning in Dynamics 365 Supply Chain Management is designed to balance supply and demand by ensuring that products are available at the right locations at the right time, without carrying excess inventory. It uses master planning to calculate net requirements and generate planned orders (purchase, transfer, production) to replenish stock based on demand forecasts, safety stock, and lead times. This directly addresses the retail company's goal of meeting customer demand without overstocking.

Answer

Intercompany planning

Answer

Capacity planning

Answer

Product lifecycle management

Question 8

Which TWO features in Dynamics 365 Supply Chain Management are used to manage and track inventory in a warehouse?

Accepted Answer

Location directives. Location directives (B) are correct because they are the warehouse management rules that tell the system where to put away, pick, or move inventory within warehouse locations, directly supporting inventory management and tracking at the location level. Inventory status (E) is correct because it lets you classify on-hand inventory with statuses such as Available, On order, or Quarantine, and control which transactions and reservations are allowed, which is essential for tracking inventory condition and availability. Kanban (A) is a lean manufacturing tool for signaling production and replenishment rather than a core warehouse inventory tracking feature. Route planning (C) concerns transportation and delivery scheduling, not warehouse inventory management. Product configuration (D) defines how a product is built or customized and does not manage or track warehouse inventory.

Answer

Kanban

Answer

Route planning

Answer

Product configuration

Question 9

Which THREE modules are part of Dynamics 365 Supply Chain Management?

Accepted Answer

Master planning. Master planning (A) is a core Dynamics 365 Supply Chain Management module that generates planned orders and demand/supply forecasts to keep inventory aligned with requirements. Transportation management (D) is also part of Supply Chain Management, handling carriers, rate engines, load planning, and freight reconciliation for inbound and outbound shipments. Warehouse management (E) belongs to Supply Chain Management as well, providing advanced inbound/outbound workflows, location directives, work templates, and mobile device handling. Project management (B) is not a Supply Chain Management module; project accounting and project management capabilities live in Dynamics 365 Project Operations. Human resources (C) is not part of Supply Chain Management either, since HR capabilities are delivered through Dynamics 365 Human Resources.

Answer

Project management

Answer

Human resources

Question 10

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

Accepted Answer

Nonconformance management. Nonconformance management (A) is correct because it is the Dynamics 365 Supply Chain Management capability used to record, track, investigate, and resolve items or processes that fail to meet quality standards, including quarantining and dispositioning nonconforming material. Quality management (D) is correct because it provides the core quality control functionality in Supply Chain Management, including defining quality associations, tests, test variables, and quality orders that trigger inspections for items, processes, or production. Together these two features cover the full quality control lifecycle from inspection setup to handling failures. Inventory counting (B) is incorrect because it is an inventory accuracy and cycle counting function, not a quality control feature. Product configuration (C) is incorrect because it defines how products are built or customized, not how quality is inspected or enforced. Vendor collaboration (E) is incorrect because it supports supplier interaction and procurement processes, not quality control management.

Answer

Inventory counting

Answer

Product configuration

Answer

Vendor collaboration

Question 11

Refer to the exhibit. A company has configured the product F0001 with the storage dimension group 'SiteWarehouse' and tracking dimension group 'BatchSerial'. What does this configuration allow?

Accepted Answer

Both batch and serial number tracking. The tracking dimension group 'BatchSerial' explicitly enables both the Batch number and Serial number tracking dimensions on the product. When a tracking dimension group includes both dimensions as active, the item can be tracked at both the batch level (groups of units produced together) and the serial level (individual units). This is the standard configuration for products requiring full lot and unit traceability, such as pharmaceuticals or electronics.

Answer

Only batch number tracking

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Only serial number tracking

Answer

Only warehouse and site tracking

Question 12

Refer to the exhibit. A warehouse location is configured with LocationProfileId 'BULK' and MaxPalletWeight 1000. What is the primary purpose of this configuration?

Accepted Answer

To define physical constraints like weight capacity. The configuration sets LocationProfileId to 'BULK' and MaxPalletWeight to 1000. In Dynamics 365 Supply Chain Management, a location profile defines the physical characteristics of a warehouse location, such as weight capacity, volume, and dimensions. MaxPalletWeight specifically enforces the maximum weight a pallet can hold at that location, ensuring safe storage and handling. Thus, the primary purpose is to define physical constraints like weight capacity, not to specify zones, picking routes, or item restrictions.

Answer

To specify the warehouse zone

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To define the picking route sequence

Answer

To restrict the types of items stored

Question 13

A company uses Dynamics 365 Supply Chain Management and wants to implement a process where products are tracked from raw material to finished goods using unique identifiers. Which feature should they enable to achieve this?

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

Accepted Answer

Warehouse mobile app. The Warehouse mobile app in Dynamics 365 Supply Chain Management is the feature that runs on handheld scanning devices and guides warehouse workers through tasks such as receiving, put-away, picking, and counting. It provides the task-driven, scan-based workflow the company wants. Configuring it is the correct step to enable guided scanning operations.

Answer

Inventory management

Answer

Warehouse management

Answer

RF scanning

Question 14

A global manufacturer uses Dynamics 365 Supply Chain Management. They need to configure a process that automatically generates purchase orders when inventory drops below a predefined level, based on real-time demand. Which feature should they use?

Accepted Answer

Reorder point planning. Reorder point planning in Dynamics 365 Supply Chain Management automatically generates purchase orders when on-hand inventory falls below a predefined reorder point, using real-time demand and lead time. It is designed for items with independent demand and simple replenishment rules, exactly matching the scenario.

Answer

Vendor collaboration

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Master planning

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Demand forecasting

Question 15

A company is implementing Dynamics 365 Supply Chain Management to improve warehouse efficiency. Which TWO features are part of warehouse management?

Accepted Answer

Wave management. Wave management (A) is a core warehouse management capability in Dynamics 365 Supply Chain Management, used to group and release outbound work so that picking, packing, and replenishment are orchestrated efficiently across the warehouse. Cycle counting (B) is also part of warehouse management, enabling periodic counting of on-hand inventory by location or item without halting operations, which supports accuracy and efficiency goals. By contrast, transportation management (C) is a separate module focused on inbound/outbound carrier and freight planning, not on warehouse execution. Procurement and sourcing (D) covers purchasing and vendor processes, and production control (E) handles manufacturing and shop-floor execution, so neither belongs to the warehouse management feature set.

Answer

Transportation management

Answer

Procurement and sourcing

Answer

Production control