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

Question 1

Refer to the exhibit. A batch job for inventory closing failed. The error indicates open inventory transactions for item A-100. What should the supply chain analyst do to resolve the issue and allow inventory closing to complete?

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

Accepted Answer

Post or cancel the open inventory transactions for item A-100.. Inventory closing cannot complete while there are open inventory transactions (e.g., sales orders, production orders, or transfer orders) that have not been posted or canceled. The correct action is to post or cancel those open transactions for item A-100, which clears the blocking records and allows the inventory closing batch job to finalize. This is a standard prerequisite in Dynamics 365 Supply Chain Management for inventory close processes.

Answer

Perform a physical inventory count for item A-100.

Answer

Change the batch job recurrence to run every hour.

Answer

Rerun the batch job immediately after the next scheduled run.

Question 2

Contoso, Ltd. is a manufacturer of custom machinery. They use Dynamics 365 Supply Chain Management with production orders and subcontracting. A production order for a custom drilling machine requires a specialized heat treatment process that is performed by an external vendor. The heat treatment is set up as a route operation with a resource of type 'Vendor' and a subcontracting purchase agreement. The production order has been released and started, but the vendor reports that they have not received the purchase order for the heat treatment service. The production planner checks the purchase order and finds that it has not been created yet. The planner confirms that the purchase agreement is active and covers the required service. What is the most likely reason that the purchase order was not automatically generated?

Accepted Answer

The operation for heat treatment has not been scheduled on the production route.. In Dynamics 365 Supply Chain Management, a subcontracting purchase order is automatically generated only after the corresponding route operation has been scheduled on the production route. Without scheduling, the system does not know when the service is needed and therefore does not trigger the purchase order creation, even if the purchase agreement is active and the production order has been released.

Answer

The purchase agreement has expired or is not approved.

Answer

The production order status is 'Estimated' and needs to be released first.

Answer

The vendor resource is not set up correctly in the system.

Question 3

A manufacturing company uses Dynamics 365 Supply Chain Management. They want to improve inventory accuracy and reduce stockouts. Which TWO actions should they take?

Accepted Answer

Use cycle counting to regularly verify inventory.. Cycle counting (A) is a continuous inventory verification method that allows frequent, focused counts of specific items without disrupting operations. This directly improves inventory accuracy by identifying and correcting discrepancies in real time, which helps prevent stockouts by ensuring system records match physical stock. Setting safety stock levels (C) provides a buffer of inventory for critical items, reducing the risk of stockouts during demand fluctuations or supply delays.

Answer

Implement ABC classification for all items.

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Enable sales forecasting for all products.

Answer

Conduct annual physical inventory counts.

Question 4

Contoso Ltd. is a global manufacturer of industrial pumps. They use Dynamics 365 Supply Chain Management with warehouse management (WMS) enabled. The warehouse in Chicago has been experiencing frequent inventory discrepancies during cycle counting. The discrepancies are mostly for items stored in bulk locations (floor storage) with high movement volume. The warehouse manager suspects that the issue is related to how inventory transactions are processed during outbound picking. When pickers confirm a pick, the system immediately reduces on-hand inventory. However, the physical movement to the staging area often happens later, sometimes after the system confirmation. This timing difference leads to phantom inventory. The manager wants to avoid a full physical inventory and implement a solution that aligns system and physical movements without major process changes. They consider four options:

A. Enable negative inventory adjustments for bulk locations.
B. Use the 'Registration' process instead of picking confirmation for outbound orders.
C. Implement a staging location and use the 'Stage for packing' functionality to defer inventory reduction until the item is physically staged.
D. Disable cycle counting for bulk locations and rely on annual physical counts.

Which option should Contoso implement?

Accepted Answer

Implement a staging location and use the 'Stage for packing' functionality to defer inventory reduction until the item is physically staged.. Implementing a staging location with the 'Stage for packing' functionality allows the system to defer inventory reduction until the item is physically moved to the staging area. This aligns the system transaction with the physical movement, eliminating the phantom inventory caused by early picking confirmation. It solves the timing discrepancy without requiring major process changes or a full physical inventory.

Answer

Disable cycle counting for bulk locations and rely on annual physical counts.

Answer

Enable negative inventory adjustments for bulk locations.

Answer

Use the 'Registration' process instead of picking confirmation for outbound orders.

Question 5

Drag and drop the steps to configure a sales order in Dynamics 365 Supply Chain Management in the correct order.

Accepted Answer

Navigate to Sales orders list, then Create a new sales order, then Select customer, then Add items, then Submit order.. Creating a sales order involves navigating to the sales orders list, creating a new order, selecting the customer, adding items, and submitting.

Answer

Navigate to Sales orders list, then Select customer, then Create a new sales order, then Add items, then Submit order.

Answer

Navigate to Sales orders list, then Create a new sales order, then Add items, then Select customer, then Submit order.

Answer

Navigate to Sales orders list, then Create a new sales order, then Select customer, then Submit order, then Add items.

Question 6

Drag and drop the steps to configure a new inventory item in Dynamics 365 Supply Chain Management in the correct order.

Accepted Answer

1. Create a new product, 2. Select product type, 3. Enter product details, 4. Release product to legal entities. Inventory item setup requires creating a product, selecting type, entering details, and releasing.

Answer

1. Select product type, 2. Create a new product, 3. Enter product details, 4. Release product to legal entities

Answer

1. Create a new product, 2. Enter product details, 3. Select product type, 4. Release product to legal entities

Answer

1. Release product to legal entities, 2. Create a new product, 3. Select product type, 4. Enter product details

Question 7

Match each Dynamics 365 Supply Chain Management concept to its description.

Accepted Answer

Production control: Manage and schedule production orders. The correct matches are: Production control with managing production orders, Inventory management with tracking inventory, Warehouse management with warehousing processes, and Transportation management with shipments. The distractors swap descriptions between Production control and Inventory management.

Answer

Production control: Track inventory levels and transactions

Answer

Inventory management: Manage and schedule production orders

Question 8

Match each Dynamics 365 Project Operations pricing method to its description.

Accepted Answer

Cost plus: Customer pays actual costs plus an agreed-upon profit margin.. In Dynamics 365 Project Operations, Cost plus covers actual costs plus profit, Fixed price is a predetermined total, and Time and materials charges based on actual hours and materials. The distractors swap these definitions.

Answer

Fixed price: Customer pays based on actual time and materials.

Answer

Time and materials: Customer pays a set amount.

Answer

Cost plus: Customer pays only for materials, not labor.

Question 9

A manufacturing company is implementing Dynamics 365 Supply Chain Management. They need to track raw material consumption and finished goods output in real time. Which module should they configure to achieve this?

Accepted Answer

Production control. Production control is the correct module because it is specifically designed to manage and track manufacturing processes, including real-time consumption of raw materials and output of finished goods through production orders, batch orders, and kanban jobs. It integrates with inventory to automatically post material consumption and finished goods receipt as production operations are reported.

Answer

Inventory management

Answer

Warehouse management

Answer

Procurement and sourcing

Question 10

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 11

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 12

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

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Inventory Visibility add-in

Answer

Warehouse management parameters

Question 13

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

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Intercompany orders

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Consignment inventory

Question 14

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

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FIFO

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Moving average

Question 15

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

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Mobile device menu items

Answer

Location profiles