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

Question 1

A company uses Dynamics 365 Supply Chain Management. They are setting up a new warehouse and want to ensure that items are stored in locations based on their physical dimensions and turnover rate. Which configuration should they use to define storage strategies?

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

Accepted Answer

Location profiles. Location profiles in Dynamics 365 Supply Chain Management define storage strategies by specifying rules for item placement based on physical dimensions, turnover rates, and other criteria. They control how locations are used for different types of inventory, such as bulk storage or picking, ensuring efficient warehouse operations.

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Location formats

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Warehouse work policies

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Inventory statuses

Question 2

A company uses Dynamics 365 Supply Chain Management. They are setting up a new warehouse and want to ensure that items are stored in locations based on their physical dimensions and turnover rate. Which configuration should they use to define storage strategies?

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

Accepted Answer

Vendor bid analysis. Vendor bid analysis in Dynamics 365 Supply Chain Management allows procurement managers to automatically evaluate and compare vendor proposals based on price, lead time, and quality rating. It uses scoring rules to rank bids and can automatically allocate purchase orders to the vendor with the best overall score, enabling data-driven vendor selection without manual intervention.

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Purchase agreements

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Request for quotation

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Vendor collaboration

Question 3

A company uses Dynamics 365 Supply Chain Management. Which TWO features are used to manage the quality of incoming materials?

Accepted Answer

Item sampling. Item sampling (A) is correct because it defines how many units of an incoming item must be physically inspected or tested when a quality order is created, directly supporting incoming material quality control. Quality orders (E) are correct because they are the core Supply Chain Management mechanism that generates inspection, test, and sampling work for received items and determines whether material is accepted or rejected. Nonconformance management (B) is not one of the two features asked for here; it handles documenting and resolving problems after they are found rather than managing incoming material quality itself. Quarantine zones (C) are warehouse locations used to hold inventory pending disposition, not the primary feature for managing incoming quality. Batch attributes (D) describe characteristics of batches for tracking and reporting, but they do not drive incoming inspection or acceptance decisions.

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Nonconformance management

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Quarantine zones

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Batch attributes

Question 4

A distribution company uses Dynamics 365 Supply Chain Management. Which TWO methods can be used to reduce the time taken to receive inbound shipments?

Accepted Answer

Use advanced shipping notice (ASN). Option A (Use advanced shipping notice (ASN)) is correct because an ASN electronically communicates the contents, quantities, and expected arrival of an inbound shipment in advance, allowing the warehouse to pre-register the load, pre-generate receipt lines, and validate against the purchase order before the truck arrives, which removes manual data entry and verification at the dock and shortens receiving time. Option E (Use mobile device receiving) is correct because handheld/scanner-based receiving in the Warehouse Management mobile app lets workers scan license plates, item and quantity barcodes directly at the dock, eliminating paper-based or desktop keying and enabling immediate registration and put-away work creation, which speeds up the receipt process. Option B (cross-docking) is not correct here because cross-docking is a flow-through strategy that bypasses put-away and storage to move goods directly from inbound to outbound, which reduces handling and storage time rather than the time taken to receive an inbound shipment. Option C (put-away clusters) is not correct because clustering is a put-away optimization that groups multiple put-away work lines for one worker, affecting the post-receipt put-away step, not the receiving step itself. Option D (quality orders for all receipts) is not correct because mandatory quality orders add inspection and quarantine steps, which increase rather than reduce receiving time.

Answer

Use cross-docking

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Use put-away clusters

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Require quality orders for all receipts

Question 5

Refer to the exhibit. A warehouse manager runs the on-hand inventory report for item P-1000 in warehouse WH01. The report shows zero on-hand quantity but the inventory status is 'Available'. The manager knows that there should be 500 units in stock based on a recent purchase order receipt. What is the most likely cause of this discrepancy?

Accepted Answer

The purchase order receipt has not been registered in the warehouse. The most likely cause is that the purchase order receipt has not been registered in the warehouse (Option A). In Dynamics 365 Supply Chain Management, inventory status is set to 'Available' by default when an item is created or received, but the on-hand quantity only updates after the receipt is physically registered against the warehouse. Since the manager sees zero on-hand quantity despite knowing 500 units were received, the receipt transaction likely exists in the system but hasn't been posted to the warehouse inventory, leaving the quantity unrecorded.

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The item is stored in a different location

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The item is reserved for a sales order

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The item is on a quality order

Question 6

Refer to the exhibit. A production scheduler reviews a scheduled production order. Operation 10 on CNC-MACHINE is scheduled from 8:00 to 11:00, and Operation 20 on ASSEMBLY-LINE starts at 11:30. The scheduler notices that operation 20 starts 30 minutes after operation 10 ends. What is the most likely reason for this gap?

Accepted Answer

Setup time for operation 20 is included in the schedule as a separate activity. In Dynamics 365 Supply Chain Management, setup time can be modeled as a separate activity in the route or production order. The 30-minute gap between Operation 10 (CNC-MACHINE) ending at 11:00 and Operation 20 (ASSEMBLY-LINE) starting at 11:30 is most likely the scheduled setup time for Operation 20, which is explicitly represented as a distinct operation or activity in the scheduling engine. This allows the system to allocate time for machine or line preparation without conflating it with run time.

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Buffer time is configured between operations

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The system automatically adds a break for the operator

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Transportation time between resources is configured

Question 7

Refer to the exhibit. A sales representative tries to confirm a sales order for 50 units of item L-5000, but the system does not allow confirmation because the available quantity is only 40. The reservation method is set to Manual. What should the sales representative do to proceed with the order?

Accepted Answer

Manually reserve 40 units and backorder the remaining 10. The reservation method is set to Manual, meaning the system does not automatically allocate inventory. The sales representative must manually reserve the available 40 units and backorder the remaining 10 units to proceed with the order, which aligns with the manual reservation process in Dynamics 365 Supply Chain Management.

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Create a purchase order for 10 units

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Change the reservation method to Automatic

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Reduce the order quantity to 40 units

Question 8

A company uses Dynamics 365 Supply Chain Management. They are setting up a new warehouse and want to ensure that items are stored in locations based on their physical dimensions and turnover rate. Which configuration should they use to define storage strategies?

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

Accepted Answer

Wave processing. Wave processing in Dynamics 365 Supply Chain Management automatically groups released orders into waves and optimizes picking routes based on location sequencing and work templates. This reduces travel time and improves warehouse efficiency by generating efficient pick paths without manual intervention.

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Inbound load management

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Cycle counting

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Cluster picking

Question 9

A company uses Dynamics 365 Supply Chain Management and wants to integrate with an external transportation management system (TMS) to get real-time shipping rates. Which integration approach should they use?

Accepted Answer

Configure the transportation management module to use rate shopping. The transportation management module in Dynamics 365 Supply Chain Management includes built-in rate shopping functionality that can integrate with external TMS providers to retrieve real-time shipping rates. This feature uses rate route workbenches and rate engines to compare rates from multiple carriers dynamically, making it the native and intended approach for real-time rate integration.

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Use OData endpoints to expose carrier data

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Use Power Automate to call a third-party API

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Use data entities to import rates from a flat file

Question 10

Which TWO features are part of Dynamics 365 Supply Chain Management's inventory management capabilities?

Accepted Answer

Quality management. Quality management (C) is a core inventory management capability in Dynamics 365 Supply Chain Management, enabling quality orders, quarantine orders, and nonconformance tracking tied to inventory items and batches. Inventory valuation (E) is also part of inventory management, providing on-hand value reporting and cost calculation methods such as FIFO, LIFO, weighted average, and standard cost. Transportation management (A) belongs to the transportation and warehouse domain rather than inventory management. Production orders (B) are part of production control, and vendor collaboration (D) is a procurement/procurement and sourcing feature, so neither is an inventory management capability.

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Transportation management

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Production orders

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Vendor collaboration

Question 11

Which THREE are benefits of using Dynamics 365 Supply Chain Management's AI and Copilot features?

Accepted Answer

Improved demand forecasting. Option B (Improved demand forecasting) is correct because Copilot and AI in Dynamics 365 Supply Chain Management use historical data, trends, and external signals to generate more accurate demand predictions, helping planners anticipate customer needs. Option D (Optimized inventory levels) is correct because AI-driven insights and Copilot recommendations help balance stock across locations, reduce excess inventory, and avoid stockouts by aligning replenishment with forecasted demand. Option E (Enhanced production scheduling) is correct because Copilot can assist planners by surfacing scheduling conflicts, suggesting adjustments, and using AI to optimize production sequences and resource utilization. Option A (Automated supplier negotiation) is not correct because Copilot does not autonomously negotiate contracts or pricing with suppliers; supplier collaboration remains a human-driven process. Option C (Reduced need for manual data entry) is not correct because while Copilot can assist with data retrieval and summarization, it does not eliminate the need for manual data entry in core supply chain transactions.

Answer

Automated supplier negotiation

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Reduced need for manual data entry

Question 12

A distributor wants to ensure that when a sales order is created, the system automatically checks if the requested item is available in the warehouse. If the item is out of stock, the system should create a purchase order for the item. Which feature in Dynamics 365 Supply Chain Management supports this?

Accepted Answer

Inventory management. Inventory management in Dynamics 365 Supply Chain Management includes features for inventory availability checks and automatic creation of purchase orders when stock is insufficient. It supports configuring item coverage and replenishment to trigger purchase orders based on demand, such as a sales order. This directly addresses the requirement.

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Order promising

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Production control

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Procurement and sourcing

Question 13

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

Accepted Answer

Procurement and sourcing. Procurement and sourcing (D) is a core module of Dynamics 365 Supply Chain Management, covering purchase requisitions, purchase orders, vendor management, and the source-to-pay process. Inventory management (E) is also a core Supply Chain Management module, handling item tracking, warehouse transactions, stock valuation, and inventory costing. By contrast, Sales and marketing (A) and Customer service (B) belong to Dynamics 365 Sales and Dynamics 365 Customer Service respectively, and Expenses management (C) is part of Dynamics 365 Finance (or the Expense Management add-on), not Supply Chain Management.

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Sales and marketing

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Customer service

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Expenses management

Question 14

A batch job for master planning is configured as shown. The job runs daily at 2 AM. The planner notices that planned orders are not being firmed automatically. What is the likely reason?

Accepted Answer

The parameter FirmPlannedOrders is set to false.. The batch job for master planning is configured to run daily at 2 AM, but planned orders are not being firmed automatically. The most likely reason is that the parameter `FirmPlannedOrders` is set to `false`. In Dynamics 365 Supply Chain Management, this parameter controls whether planned orders are automatically firmed during master planning execution. When set to `false`, the system will generate planned orders but will not automatically convert them to firm planned orders or production/purchase orders, requiring manual intervention.

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Safety stock is not included in the planning.

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The recurrence is set to run daily, but the job should run hourly.

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The job status shows an error.

Question 15

A warehouse configuration shows a location directive for putaway of purchase orders. When a purchase order is received, the system tries to put items into a location with the BULK profile. However, some large items are being placed in PICK locations. What could be the cause?

Accepted Answer

The location directive does not have weight or volume constraints.. The location directive for putaway of purchase orders is attempting to place items into a location with the BULK profile, but some large items are ending up in PICK locations. The most likely cause is that the location directive lacks weight or volume constraints, so the system does not filter out PICK locations that may have insufficient capacity for large items. Without these constraints, the directive may fall back to other locations if the BULK location is unavailable or if the item's dimensions exceed the BULK location's capacity, but the directive itself does not enforce size restrictions.

Answer

The location profile for BULK is not correctly assigned to locations.

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The location directive is for sales orders, not purchase orders.

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A separate directive for PICK locations overrides the BULK directive.