MB-920 Describe Dynamics 365 Supply Chain Management Practice Test 20 — 15 Questions

Question 1

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

Accepted Answer

Warehouse Management. Inventory Management and Warehouse Management are core SCM modules. Project Management is separate. Human Resources is HR. Sales is part of Sales, not SCM directly.

Answer

Sales and Marketing

Answer

Human Resources

Answer

Project Management and Accounting

Question 2

Contoso Ltd. is a global manufacturer of electronic components. They use Dynamics 365 Supply Chain Management with advanced warehouse management (WMS). The warehouse manager reports that during peak seasons, the picking process is slow because workers often have to travel long distances to pick items for multiple orders. Additionally, they want to improve the accuracy of shipments by ensuring that items are picked in the correct sequence. They have implemented barcode scanning on mobile devices. The IT team has configured location directives and work templates. However, the manager believes that the current setup does not optimize travel time or enforce a specific picking order. The company needs a solution that groups orders with similar items into a single picking trip and prioritizes picks based on the physical layout of the warehouse. They have considered using wave management but are unsure how to configure it. What should the administrator do?

Accepted Answer

Configure cluster picking in the wave template to group orders with similar items and create a single pick list for the cluster.. Cluster picking groups multiple orders into one picking trip, reducing travel. The 'FEFO' (first expiry first out) picking strategy is not about grouping. Cross-docking is for direct shipment. Zone sequencing defines work order but does not group orders. Cluster picking with wave management is the correct approach to batch orders and minimize travel.

Answer

Define zone sequencing in the work template to enforce a specific order of zones.

Answer

Set up cross-docking to move incoming items directly to outbound docks.

Answer

Enable 'FEFO' (first expiry, first out) picking strategy in the location directive to prioritize older stock.

Question 3

Northwind Traders uses Dynamics 365 Supply Chain Management for their distribution operations. They have a requirement to manage inventory across multiple warehouses and legal entities. They want to transfer finished goods from their manufacturing subsidiary (legal entity A) to their distribution subsidiary (legal entity B) at a transfer price that includes a markup. The transfer should be recorded as a sale in entity A and a purchase in entity B. They plan to use intercompany functionality. The finance team has set up intercompany parameters, but the transactions are not creating the expected intercompany orders. The administrator has verified that both entities are configured correctly in the system. However, the intercompany orders are not generated automatically when a purchase order is created in entity B. What should the administrator check next?

Accepted Answer

Ensure that the intercompany relationship is defined for the specific item in the item mapping setup.. Intercompany orders require that the intercompany relationship is defined on the item level, not just the legal entity level. The item must be mapped between entities to trigger automatic order creation. The vendor setup on the purchase order is correct but without item mapping, no interchain. Intercompany parameters are global, but item relations are per item.

Answer

Confirm that the inventory unit of measure is the same in both entities.

Answer

Check that the intercompany parameters in entity B are set to 'Create intercompany purchase orders automatically'.

Answer

Verify that the vendor associated with entity A is set up as an intercompany vendor in entity B.

Question 4

A small manufacturing company recently implemented Dynamics 365 Supply Chain Management to manage their production. They produce custom furniture and want to use production orders to track costs and materials. The production manager creates a production order for a new chair design. However, when they try to estimate the production order, they receive an error: 'No active bill of materials (BOM) version exists for the item.' The item (chair) has a BOM, but the BOM version is set to 'Draft' status. The manager needs to proceed with the production order as soon as possible. What should the administrator do to resolve this issue?

Accepted Answer

Change the BOM version status from 'Draft' to 'Approved' and then 'Active'.. The BOM version must be approved and activated before it can be used on production orders. Setting to 'Active' status makes it usable. Deleting and recreating would waste time. Copying from another item may introduce errors. Changing the production order to use the route only bypasses the BOM requirement but materials won't be tracked.

Answer

Copy the BOM from a similar item and assign it to the chair.

Answer

Delete the existing BOM version and create a new one with 'Active' status directly.

Answer

Set the production order to not require a BOM by clearing the BOM field.

Question 5

A manufacturing company uses Dynamics 365 Supply Chain Management. The production manager notices that raw material inventory levels frequently drop below the reorder point, causing production delays. Which feature should be configured to automatically suggest purchase orders based on demand and current inventory levels?

Accepted Answer

Master planning. Master planning in Dynamics 365 Supply Chain Management calculates material and capacity requirements based on demand and automatically generates planned purchase orders to maintain optimal inventory levels. Option A (Landed cost) is used to manage costs associated with importing goods, not for automatic replenishment. Option B (Warehouse management) focuses on warehouse operations like receiving, picking, and shipping, not on planning purchase orders. Option C (Inventory Visibility) provides real-time inventory visibility but does not automatically suggest purchase orders.

Answer

Landed cost

Answer

Warehouse management

Answer

Inventory Visibility

Question 6

A company uses Dynamics 365 Supply Chain Management with warehouse management. They need to enforce that workers scan a license plate when picking items from a bulk location. Which configuration should be used?

Accepted Answer

Set the 'License plate required' option on the location directive for the bulk location. A location directive with a 'License plate required' setting forces workers to scan the license plate during picking. Option A is a general setup, not specific to scanning. Option B controls item registration, not scanning enforcement. Option D controls menu navigation, not scanning.

Answer

Create a mobile device menu item with 'Scan by' set to License plate

Answer

Assign a menu item to a role that only allows license plate scanning

Answer

Configure a work creation policy that requires license plate registration

Question 7

A retail company uses Dynamics 365 Supply Chain Management to manage inventory across multiple warehouses. They want to ensure that when a sales order is created for a product, the system automatically reserves inventory from the nearest warehouse. Which feature should be used?

Accepted Answer

Available-to-promise (ATP). Available-to-promise (ATP) is the correct feature because it calculates the quantity available to promise based on supply and demand across multiple warehouses, allowing the system to reserve inventory from the nearest warehouse. Option A (Sales and marketing) handles sales processes but not automated reservation. Option B (Warehouse management) manages warehouse operations but does not determine nearest warehouse reservation. Option D (Procurement and sourcing) deals with purchasing, not sales order reservation.

Answer

Sales and marketing

Answer

Warehouse management

Answer

Procurement and sourcing

Question 8

A manufacturing company uses Dynamics 365 Supply Chain Management for process manufacturing. They produce a liquid chemical that requires a specific mixing time. Which feature should be used to enforce that the production step takes at least 30 minutes before the next step can begin?

Accepted Answer

Route operation with a 'Process time' set to 30 minutes. A route operation with a 'Process time' of 30 minutes will enforce that the operation takes at least that long. Option A is for discrete manufacturing, not process. Option C is for product configuration, not production steps. Option D is for quality management, not time enforcement.

Answer

Product configuration model

Answer

Production orders with a bill of materials (BOM)

Answer

Quality order with a test time

Question 9

A company uses Dynamics 365 Supply Chain Management and wants to track the environmental impact of their products, such as carbon footprint, across the supply chain. Which capability should they use?

Accepted Answer

Sustainability. The Sustainability module in Dynamics 365 Supply Chain Management provides carbon footprint tracking and sustainability analytics. Option A (Demand planning) is for supply chain planning, not sustainability. Option C (Product feedback) is for gathering product insights, not environmental impact. Option D (Asset management) is for maintenance and lifecycle of assets, not sustainability tracking.

Answer

Demand planning

Answer

Product feedback

Answer

Asset management

Question 10

A distribution company uses Dynamics 365 Supply Chain Management and needs to set up a consignment inventory process where the supplier owns the inventory until it is consumed. Which inventory model should be used?

Accepted Answer

Consignment inventory. Consignment inventory is specifically designed for inventory owned by the supplier until use. Option A is for standard purchase orders. Option B is for customer returns. Option C is for products that are not stocked.

Answer

Purchase order

Answer

Return order

Answer

Non-stocked product

Question 11

A company uses Dynamics 365 Supply Chain Management with advanced warehouse management. They need to ensure that when a purchase order is received, the system automatically creates work to put away the items in a specific location based on the product's storage dimension group. Which configuration is required?

Accepted Answer

Configure a location directive and a work template for purchase order put-away. Location directives define the specific locations where items should be put away based on criteria such as storage dimension groups, and work templates generate the work needed to perform the put-away. Option A is incorrect because mobile device menu items are used to execute warehouse work on a scanner, not to configure the put-away logic. Option C is incorrect because wave templates are typically used for outbound processes like picking and shipping, not for inbound put-away. Option D is incorrect because replenishment templates are used to replenish locations, not to assign put-away locations for incoming purchase orders.

Answer

Create a mobile device menu item for put-away

Answer

Set up a wave template for inbound waves

Answer

Configure a replenishment template

Question 12

A company uses Dynamics 365 Supply Chain Management and wants to use AI to predict potential supply chain disruptions, such as supplier delays, and suggest alternative actions. Which Copilot feature should they use?

Accepted Answer

Copilot in Supply Chain Management. Copilot in Supply Chain Management is specifically designed to leverage AI to predict potential supply chain disruptions, such as supplier delays, and suggest alternative actions. Option B (Copilot for sales orders) focuses on order management and does not provide disruption prediction. Option C (Inventory optimization) is aimed at optimizing inventory levels, not at predicting disruptions. Option D (Production scheduling) deals with scheduling production runs, not supply chain risk prediction.

Answer

Copilot for sales orders

Answer

Inventory optimization

Answer

Production scheduling

Question 13

A company uses Dynamics 365 Supply Chain Management and needs to ensure that all inbound shipments from a specific vendor are inspected before being put away. Which feature should be configured?

Accepted Answer

Quality management with quality orders. Quality management in Dynamics 365 Supply Chain Management allows automatic creation of quality orders upon inbound receipt through quality associations, enabling inspection of shipments from specific vendors. Option A (Production control) is for manufacturing processes, not inbound inspection. Option C (Outbound load planning) relates to outbound shipments. Option D (Work creation policies) controls warehouse work generation, not quality inspection.

Answer

Production control

Answer

Outbound load planning

Answer

Work creation policies

Question 14

A company uses Dynamics 365 Supply Chain Management for discrete manufacturing. They need to reduce waste by ensuring that raw materials are only issued to production orders when the production order is released to the floor. Which TWO actions should they take?

Accepted Answer

Set the production order status to 'Released' before issuing materials. Setting the production order status to 'Released' triggers the material picking process, ensuring raw materials are issued only after the order is released to the floor. Option D is correct because the 'Release to warehouse' process generates picking work, which controls the physical issuance of materials. Option A is incorrect because 'Estimated' status does not initiate material issuing; it is a preliminary step. Option C is incorrect because quality orders are for quality inspections, not material control. Option E is incorrect because 'Ended' status indicates completion, not material issuance.

Answer

Set the production order status to 'Estimated'

Answer

Create a quality order for raw materials

Answer

Mark the production order as 'Ended'

Question 15

A company uses Dynamics 365 Supply Chain Management with warehouse management. They want to improve picking accuracy by requiring workers to scan each item's barcode and the location barcode during picking. Which TWO configurations are necessary?

Accepted Answer

Set the 'License plate required' option on the location directive. To enforce barcode scanning during picking, two configurations are needed: (1) On the mobile device menu item for the picking process, set the 'Scan by' field to 'Item' – this forces the worker to scan the item barcode before confirming the pick. (2) On the location directive used for picking, set the 'License plate required' option to 'Yes' – this forces the worker to scan the location barcode (license plate) when picking from a license plate–controlled location. Option A (work template line per item) is about how work lines are generated, not scanning. Option B (product filter) restricts items available, but does not enforce scanning. Option E is incorrectly phrased; 'Scan by' is set at the mobile device menu item level, not at the location directive.

Answer

Create a work template with a line for each item

Answer

Configure a product filter to restrict items

Answer

Enable 'Scan by' on the mobile device menu item to 'Location'