MB-920 Describe Dynamics 365 Supply Chain Management Practice Test 2 — 15 Questions

Question 1

A distribution company uses Dynamics 365 Supply Chain Management. They notice that warehouse workers are scanning incorrect items during picking, leading to shipment errors. Which feature should they implement to reduce errors?

Accepted Answer

License plate tracking. License plate tracking (LPT) enables warehouse workers to scan a unique barcode on each pallet or container, which is linked to the exact inventory items and quantities in the system. By requiring a license plate scan during picking, the system validates that the correct item is being picked, preventing incorrect item selection and reducing shipment errors.

Answer

Cycle counting

Answer

RFID scanning

Answer

Wave processing

Question 2

A company wants to automate the replenishment of raw materials to production lines based on actual consumption. Which capability in Dynamics 365 Supply Chain Management should they use?

Accepted Answer

Kanban rules. Kanban rules in Dynamics 365 Supply Chain Management are specifically designed to automate material replenishment based on actual consumption signals (e.g., from production line scans or barcode reads). They implement a pull-based system where a kanban card triggers a replenishment event only when material is consumed, aligning directly with the requirement for consumption-driven automation.

Answer

Master planning

Answer

Quality management

Answer

Vendor collaboration

Question 3

A retailer uses Dynamics 365 Supply Chain Management to manage inventory across multiple stores. They need to ensure that store managers can only see inventory for their own store. What configuration should they use?

Accepted Answer

Data security policies. Data security policies in Dynamics 365 Supply Chain Management allow administrators to restrict record-level access based on user roles and context, such as limiting inventory visibility to a specific store. By configuring a data security policy that filters inventory records by the store dimension, store managers will only see data relevant to their assigned store. This is the correct approach because it enforces row-level security without customizing forms or reports.

Answer

Product filters

Answer

Inventory Visibility add-in

Answer

Warehouse management parameters

Question 4

A manufacturer uses Dynamics 365 Supply Chain Management and wants to implement a vendor-managed inventory (VMI) process where suppliers monitor stock levels and trigger replenishment. Which feature should they enable?

Accepted Answer

Vendor collaboration. Vendor collaboration in Dynamics 365 Supply Chain Management enables suppliers to view inventory levels, demand forecasts, and purchase orders through a dedicated portal. This allows suppliers to monitor stock and trigger replenishment, which is the core requirement of a vendor-managed inventory (VMI) process.

Answer

Purchase agreements

Answer

Intercompany orders

Answer

Consignment inventory

Question 5

A company needs to calculate the cost of manufactured products including direct materials, labor, and overhead. Which costing methodology in Dynamics 365 Supply Chain Management should they use?

Accepted Answer

Standard costing. Standard costing is the correct methodology because it allows the company to define predetermined costs for direct materials, labor, and overhead, and then calculate variances against actual costs. In Dynamics 365 Supply Chain Management, standard costing is specifically designed for manufacturing scenarios where you need to value inventory and cost of goods sold based on expected costs, with variance tracking for deviations.

Answer

Weighted average

Answer

FIFO

Answer

Moving average

Question 6

A warehouse manager notices that picking routes are inefficient, causing delays. They want to optimize the travel path for pickers. Which Dynamics 365 Supply Chain Management feature should they use?

Accepted Answer

Wave processing. Wave processing in Dynamics 365 Supply Chain Management is the correct feature because it allows the system to group multiple orders into efficient picking waves, optimizing the travel path for pickers by consolidating work into logical, sequenced routes. This reduces travel time and improves warehouse productivity by creating picking work that follows an optimal path through the warehouse.

Answer

Inventory status

Answer

Mobile device menu items

Answer

Location profiles

Question 7

A company that produces perishable goods needs to enforce strict lot control and first-expiry-first-out (FEFO) picking. Which configuration in Dynamics 365 Supply Chain Management is essential?

Accepted Answer

Lot control and FEFO picking criteria. Option A is correct because enforcing strict lot control and first-expiry-first-out (FEFO) picking criteria in Dynamics 365 Supply Chain Management requires enabling lot control on the product (via tracking dimension groups) and then setting the FEFO picking criteria on the warehouse location directive. This configuration ensures that items with the nearest expiry date are picked first, which is critical for perishable goods to minimize waste and comply with regulatory requirements.

Answer

Product dimension groups

Answer

Batch attributes

Answer

Serial number control

Question 8

A company wants to use AI to predict potential stockouts and suggest replenishment actions. Which Dynamics 365 Supply Chain Management capability should they leverage?

Accepted Answer

Demand forecasting. Demand forecasting in Dynamics 365 Supply Chain Management uses AI and machine learning to analyze historical data, seasonal patterns, and external factors to predict future demand. This capability directly addresses the need to predict potential stockouts and suggest replenishment actions by generating accurate demand predictions that feed into planning processes.

Answer

Master planning

Answer

IoT Intelligence

Answer

Inventory optimization

Question 9

Which TWO features in Dynamics 365 Supply Chain Management help reduce inventory carrying costs?

Accepted Answer

Vendor-managed inventory. Demand forecasting helps align inventory with demand, reducing excess stock. Vendor-managed inventory shifts inventory ownership to suppliers until consumed. Option A is wrong because RFID is for tracking, not cost reduction. Option D is wrong because Product variants are for product differentiation. Option E is wrong because Intercompany planning is for internal transfers.

Answer

Intercompany planning

Answer

Product variants

Answer

RFID tracking

Question 10

Which THREE are key capabilities of Dynamics 365 Supply Chain Management's warehouse management module?

Accepted Answer

Cycle counting. Cycle counting is a core capability of the Dynamics 365 Supply Chain Management warehouse management module, allowing for ongoing inventory accuracy checks without full physical inventory shutdowns. It supports scheduled and ad-hoc counts based on item criteria, locations, or zones, and integrates with warehouse operations to minimize disruption.

Answer

Product lifecycle management

Answer

Service agreements

Question 11

Which TWO are examples of production order statuses in Dynamics 365 Supply Chain Management?

Accepted Answer

Released. In Dynamics 365 Supply Chain Management, production order statuses track the lifecycle of a manufacturing order. 'Released' (B) is a valid status that indicates the production order has been authorized for execution on the shop floor. 'Reported as finished' (D) is also a valid status, meaning the entire quantity or a partial quantity of the production order has been completed and reported into inventory.

Answer

Reserved

Answer

Picked

Answer

Invoiced

Question 12

A warehouse manager queries the on-hand inventory for item L0101 and receives the JSON output above. Currently, how many units of item L0101 are available to be picked for new orders?

Accepted Answer

300. The on-hand inventory for item L0101 is 700 units, but 200 units are physically reserved for existing orders. The available-to-pick quantity is the on-hand total minus physically reserved inventory, which equals 500 units. However, the correct answer is 300 because the JSON output shows 'OnHandTotal: 700', 'ReservedPhysical: 200', and 'AvailablePhysical: 300' — the 'AvailablePhysical' field directly represents the quantity available to be picked for new orders in Dynamics 365 Supply Chain Management.

Answer

500

Answer

200

Answer

700

Question 13

A production planner reviews a route operation for a manufacturing order. How long, in hours, is the total processing time for this operation?

Accepted Answer

0.75. The total processing time for a route operation in Dynamics 365 Supply Chain Management is calculated as the sum of the setup time and the run time per unit multiplied by the quantity. In this scenario, the operation has a setup time of 0.25 hours and a run time of 0.5 hours per unit for one unit, resulting in a total processing time of 0.75 hours. Option A is correct because 0.25 + 0.5 = 0.75.

Answer

1.0

Answer

0.25

Answer

0.5

Question 14

A procurement manager reviews a purchase order. How many units of item M-100 are still due to be received?

Accepted Answer

50. Due quantity = ordered quantity - received quantity = 100 - 50 = 50. Option A is wrong because 100 is the total ordered. Option B is wrong because 50 is the received quantity. Option D is wrong because 150 is the sum.

Answer

100

Answer

150

Answer

50

Question 15

A manufacturing company uses Dynamics 365 Supply Chain Management. The warehouse manager notices that a critical raw material is frequently out of stock, causing production delays. The planner wants to ensure that the material is reordered before stock hits zero. Which inventory planning feature should be configured to automatically generate replenishment orders based on forecasted demand and current inventory levels?

Accepted Answer

Master planning. Master planning in Dynamics 365 Supply Chain Management is the correct feature because it uses forecasted demand, current inventory levels, and lead times to automatically generate replenishment orders (purchase orders or transfer orders) before stock hits zero. This prevents stockouts by planning net requirements and creating planned orders that can be firmed into actual orders.

Answer

Inventory adjustment journal

Answer

Cycle counting

Answer

Quality order