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

Question 1

Which THREE of the following are valid master planning types in Dynamics 365 Supply Chain Management?

Accepted Answer

Supply planning. In Dynamics 365 Supply Chain Management, the valid master planning types are supply planning, intercompany planning, and distribution planning. Options A, B, and E are correct. Demand planning and capacity planning are related but are not master planning types.

Answer

Demand planning

Answer

Capacity planning

Question 2

Which THREE of the following are capabilities of the Dynamics 365 Supply Chain Management Copilot (AI) features?

Accepted Answer

Analyze supplier performance and recommend alternatives. Copilot can analyze supplier performance (A), optimize production schedules (C), and generate demand forecasts (E). It does not directly manage warehouse robots (D) or set up financial dimensions (B). Correct: A, C, E.

Answer

Set up financial dimensions for cost centers

Answer

Automatically manage warehouse robot fleet

Question 3

You are a supply chain consultant for a mid-sized manufacturing company that uses Dynamics 365 Supply Chain Management. The company produces electronic components and has two warehouses: one for raw materials (Warehouse A) and one for finished goods (Warehouse B). They have been experiencing frequent delays in production because raw materials are not available when needed, even though the materials are in stock at Warehouse A. The production scheduler reports that the system does not automatically reserve materials for production orders. Additionally, the warehouse manager wants to implement a policy where high-value raw materials are stored in a secure, locked area within Warehouse A, and only authorized workers can pick them. You need to configure the system to: (1) automatically reserve raw materials for production orders when they are firm planned; (2) restrict picking of high-value materials to specific workers. What should you do?

Accepted Answer

Configure production reservation in the production control parameters to reserve materials automatically when production orders are firm planned. Create a new warehouse location for high-value items, and set up a mobile device menu item with a worker filter to restrict picking to authorized workers.. To automatically reserve raw materials for production orders when they are firm planned, you configure the production reservation setting in the Production control parameters (not in production order defaults or master planning). For restricting picking of high-value materials to specific workers, you create a dedicated warehouse location for those items and set up a mobile device menu item with a worker filter, so only authorized workers can perform picks from that location. Option D correctly combines both steps. Option A is incorrect because location profiles alone cannot restrict worker access; worker filters are needed. Option B incorrectly suggests using batch attributes and a separate warehouse, which is not the standard approach for access restriction. Option C is wrong because inventory status and quality orders do not restrict picking to specific workers.

Answer

Set up location profiles to mark the secure area as 'Restricted' and configure location directives to use these locations for high-value items. Enable production reservation in the production order defaults.

Answer

Assign batch attributes to high-value materials and use batch reservation. Restrict picking by setting up a separate warehouse for high-value items.

Answer

Use inventory status to block high-value items and create a quality order to release them. Enable automatic reservation in master planning parameters.

Question 4

You are a Dynamics 365 Supply Chain Management functional consultant for a food and beverage company. The company receives raw materials from multiple suppliers and needs to enforce quality inspections on all inbound shipments of dairy products. If a dairy shipment fails inspection, the entire lot must be quarantined and cannot be used in production. Additionally, the company wants to automatically generate purchase orders when the inventory level of a key ingredient falls below a reorder point. The inventory planner will review and approve the suggested orders before they are sent to suppliers. You need to configure the system to: (1) enforce quality inspections on inbound dairy products; (2) automatically quarantine failed lots; (3) generate purchase order suggestions based on reorder points. What should you do?

Accepted Answer

Use quality orders with a sampling plan for dairy products and set inventory status to 'Quarantine' on failure. Set up item coverage with a reorder point and run master planning to generate planned purchase orders.. To enforce quality inspections on inbound dairy products, you need to create quality orders with a sampling plan specific to dairy items. When a quality order fails, you can configure the inventory status to be updated to 'Quarantine', which blocks the lot from being used in production. For automatic purchase order generation based on reorder points, you set up item coverage for the key ingredient with a reorder point and run master planning. Master planning will generate planned purchase orders when the projected inventory falls below the reorder point. The inventory planner can then review and approve these planned orders before they are converted to actual purchase orders. Option B correctly combines quality orders with sampling and quarantine status for inspections, and item coverage with master planning for purchase order suggestions. Option A is incorrect because the safety stock journal does not automatically generate purchase orders based on reorder points; it is a manual adjustment. Option C uses vendor evaluation, which is not the correct tool for inbound quality inspections on specific items. Option D uses cycle counting, which is for inventory accuracy, not quality inspections.

Answer

Create a quality order for each inbound dairy shipment and configure a workflow to approve or reject. Use safety stock journal to create purchase orders when stock is low.

Answer

Set up vendor evaluation to inspect dairy suppliers and use inventory blocking to quarantine. Configure master planning with safety stock for automatic purchase orders.

Answer

Create a cycle counting plan for dairy products and set up a quarantine zone in the warehouse. Configure item coverage with a min-max system for automatic purchase orders.

Question 5

A manufacturing company uses Dynamics 365 Supply Chain Management to manage its production. The production manager notices that the planned production orders are not generating the expected material requirements. What should the administrator check first?

Accepted Answer

Ensure the bill of materials (BOM) is approved and active.. The bill of materials (BOM) defines the components required for production. If the BOM is missing or incorrect, material requirements will not be generated. The route is for operations sequencing, not material requirements. Inventory status and capacity constraints affect execution, not planning explosion.

Answer

Verify that the route is correctly defined for the item.

Answer

Check if the item's inventory status is set to 'Open'.

Answer

Review the capacity constraints on the work center.

Question 6

A company wants to use Dynamics 365 Supply Chain Management to automate replenishment of raw materials from suppliers based on current inventory levels. Which feature should they configure?

Accepted Answer

Vendor-managed inventory (VMI). Vendor-managed inventory (VMI) allows suppliers to manage inventory levels. Purchase agreements set terms but don't automate replenishment. Intercompany orders handle transfers between subsidiaries. Consignment is a financial ownership model, not automation.

Answer

Intercompany orders

Answer

Consignment inventory

Answer

Purchase agreements

Question 7

During a system audit, you discover that a warehouse worker has been able to pick inventory that was reserved for another order. Which configuration change should you recommend to prevent this issue?

Accepted Answer

Configure the inventory reservation hierarchy to enforce reservation against physical supply.. Inventory reservation hierarchy determines the order of reservation against supply. If not properly configured, workers can pick reserved stock. Location directives guide picking but don't enforce reservation. Wave processing is for batch picking. Inventory status controls availability but not reservation enforcement.

Answer

Enable wave processing to create picks only for unreserved inventory.

Answer

Set up location directives to restrict picking from reserved locations.

Answer

Change inventory status to 'Quarantine' for reserved items.

Question 8

A company uses Dynamics 365 Supply Chain Management with advanced warehouse management. They want to ensure that workers picking sales orders are directed to the nearest location with available inventory. Which configuration should they use?

Accepted Answer

Configure a location directive with a 'Nearest' strategy.. Location directives in Dynamics 365 Supply Chain Management with advanced warehouse management can be configured with a 'Nearest' strategy. This strategy directs the system to calculate the shortest distance from the worker's current location to the nearest location containing available inventory, ensuring efficient picking routes for sales orders.

Answer

Set up a work template that assigns the nearest work user.

Answer

Define a mobile device menu item for 'Location Inquiry'.

Answer

Create a wave template that prioritizes proximity.

Question 9

A company needs to track the cost of raw materials from the moment they are received until the finished goods are sold. Which costing method should they use to ensure that each unit's cost is individually tracked?

Accepted Answer

Specific identification. Specific identification tracks each unit individually. FIFO assumes first-in-first-out. Weighted average uses average cost. Standard cost uses predetermined cost.

Answer

FIFO (first in, first out)

Answer

Standard cost

Answer

Weighted average

Question 10

A distribution company uses Dynamics 365 Supply Chain Management. They want to automatically calculate transportation charges for outbound shipments based on weight and distance. Which module should they use?

Accepted Answer

Transportation management. Transportation management calculates rates based on rate masters. Warehouse management manages warehouse operations. Inventory management tracks stock. Procurement and sourcing handles purchasing.

Answer

Inventory management

Answer

Procurement and sourcing

Answer

Warehouse management

Question 11

A company uses Dynamics 365 Supply Chain Management with master planning. They notice that planned orders are not being firmed automatically even though the coverage group settings have a firming time fence. What could be the cause?

Accepted Answer

The master plan is not set to include the firming action.. The firming time fence is set in the coverage group, but the master plan must be triggered with the 'Firming' action. The coverage group setting alone does not automatically firm; the plan must be run with the 'Firming' method. If the plan is run without firming, orders remain planned.

Answer

The firming time fence is longer than the planning horizon.

Answer

The item has a minimum inventory quantity set to zero.

Answer

The coverage group is not assigned to the item.

Question 12

A company wants to use Dynamics 365 Supply Chain Management to manage quality inspections for incoming raw materials. Which module should they configure?

Accepted Answer

Quality management. The Quality management module in Dynamics 365 Supply Chain Management is specifically designed to handle quality inspections, including those for incoming raw materials. It allows you to define quality orders, attach item sampling rules, and specify test instruments and failure actions, ensuring that raw materials meet required standards before they are accepted into inventory.

Answer

Production control

Answer

Warehouse management

Answer

Inventory management

Question 13

A company uses Dynamics 365 Supply Chain Management and wants to use AI to predict potential stockouts and suggest replenishment orders. Which feature should they enable?

Accepted Answer

Inventory Visibility Add-in with AI-powered demand forecasting. The Inventory Visibility Add-in with AI capabilities provides demand forecasting and stockout predictions. The Product Insights feature is for product performance. The Asset Management module is for maintenance. The Commerce module is for retail.

Answer

Asset Management

Answer

Product Insights

Answer

Commerce module

Question 14

Which TWO actions should you take to configure Dynamics 365 Supply Chain Management to support a lean manufacturing environment?

Accepted Answer

Configure production flows and activities.. Lean manufacturing uses kanban rules and production flows. Production orders and batch orders are for discrete and process manufacturing, not lean.

Answer

Enable batch order creation for process manufacturing.

Answer

Create production orders for each manufacturing step.

Answer

Define work cells for lean production.

Question 15

Which THREE features are available in Dynamics 365 Supply Chain Management to improve warehouse efficiency?

Accepted Answer

Cluster picking. Cluster picking, wave management, and location directives are core warehouse management features. Supplier collaboration is external. Budget control is financial.

Answer

Budget control

Answer

Supplier collaboration