MB-920 Describe Dynamics 365 Supply Chain Management Practice Test 21 — 15 Questions

Question 1

A company uses Dynamics 365 Supply Chain Management and wants to use Copilot to assist with supply chain planning. Which THREE capabilities are provided by Copilot in Supply Chain Management?

Accepted Answer

Explain master planning results in natural language. Options A, C, and E are correct. Copilot in Supply Chain Management can explain master planning results in natural language (A), predict potential supplier delays (C), and suggest alternative suppliers based on historical performance (E). Option B (generate purchase orders automatically) is not a Copilot capability but a standard automation feature. Option D (automatically adjust inventory levels using AI) is related to inventory optimization, not Copilot.

Answer

Generate purchase orders automatically

Answer

Automatically adjust inventory levels using AI

Question 2

A company uses Dynamics 365 Supply Chain Management and wants to use Copilot to assist with supply chain planning. Which THREE capabilities are provided by Copilot in Supply Chain Management?

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

Accepted Answer

Set up shelf life (best before date) tracking for the product. Options A and E are correct. Shelf life tracking (best before date) is required to enforce that a product uses a specific formula version based on its shelf life. Setting 'From date' and 'To date' on the formula version defines its validity period, allowing the system to select the appropriate version. Option B is incorrect because BOM versions are for discrete manufacturing, not process manufacturing. Option C is incorrect because catch weight is for variable weight products, not for shelf life enforcement. Option D is incorrect because location directives are for warehouse management, not for formula version selection.

Answer

Create a BOM version instead of a formula version

Answer

Enable catch weight on the product

Answer

Configure a location directive for the warehouse

Question 3

You are the supply chain manager for a global pharmaceutical company that manufactures and distributes temperature-sensitive vaccines. The company uses Dynamics 365 Supply Chain Management with warehouse management and production control. The vaccines must be stored at 2-8°C throughout the supply chain. You need to design a process that ensures: (1) inbound vaccine shipments are inspected and temperature-logged before acceptance, (2) vaccines are immediately moved to a cold storage location upon receipt, (3) picking for outbound orders always prioritizes vaccines with the nearest expiration date (FEFO), and (4) any temperature excursion during storage automatically triggers a quarantine and quality order. Which set of configurations should you implement?

Accepted Answer

Configure a quality association for inbound inspections, location directives for cold storage, set reservation hierarchy to FEFO, and use temperature monitoring with threshold alerts linked to quality orders.. Quality associations automate inbound inspection upon receipt; location directives with temperature zone settings ensure immediate putaway to cold storage; reservation hierarchy enforces FEFO for outbound picking; and temperature monitoring with threshold alerts automatically triggers quality orders for quarantine. Option B is incorrect because periodic manual temperature checks do not provide automatic quarantine triggers, and quality orders alone lack automated association for inbound inspection. Option C uses FIFO instead of FEFO and relies on manual quality orders, missing automation. Option D uses FIFO and does not include temperature monitoring for automatic quarantine triggers.

Answer

Set up inbound inspection via a quality order, use a work template for put-away, enable FEFO reservation, and rely on periodic manual temperature checks.

Answer

Set up a mobile device menu for receipt, use a wave template for put-away, enable FIFO reservation, and use quality orders manually.

Answer

Use a quality order for inbound, create a location directive for cold storage, set reservation hierarchy to FIFO, and enable batch attributes.

Question 4

You are a solutions architect for a furniture manufacturer that uses Dynamics 365 Supply Chain Management. The company produces custom furniture and uses make-to-order production. They have the following requirements: (1) When a sales order is created, the system must automatically create a production order for the configured product. (2) The production order must use a BOM and route that are specific to the order configuration. (3) The production order must be scheduled based on material availability and capacity. (4) The company wants to use Copilot to assist in creating the production schedule. Which set of configurations should you implement?

Accepted Answer

Create a production order from the sales order, use product configuration models to generate BOM and route, schedule operations using finite capacity, and enable Copilot for scheduling.. (1) Creating a production order from the sales order is standard for make-to-order scenarios. (2) Product configuration models dynamically generate a BOM and route specific to the order configuration. (3) Scheduling operations using finite capacity ensures material and capacity constraints are respected. (4) Copilot can assist in creating the production schedule. Option A (blanket sales order and kanban) is for repetitive manufacturing, not make-to-order. Option C (direct picking) bypasses production entirely, which doesn't meet the make-to-order requirement. Option D (purchase order and transfer order) is for procuring finished goods, not producing configured products.

Answer

Create a blanket sales order and use a kanban rule to trigger production.

Answer

Create a sales order and directly pick inventory; no production order needed.

Answer

Create a purchase order for the configured product and use a transfer order.

Question 5

Which TWO inventory costing methods are available in Dynamics 365 Supply Chain Management?

Accepted Answer

FIFO. FIFO (First In, First Out) and Standard cost are both valid inventory costing methods in Dynamics 365 Supply Chain Management. FIFO assumes that the first items received are the first ones sold. Standard cost uses predetermined costs for items. Weighted average is also a valid method, but the question limits to two choices.

Answer

LIFO

Answer

Fixed cost

Answer

Weighted average

Question 6

Refer to the exhibit. An administrator is reviewing an inventory value report configuration in Dynamics 365 Supply Chain Management. The report shows total quantities and costs for items that are not closed. A user complains that the report does not include items from site 2. What is the most likely cause?

Accepted Answer

The report is filtered to site 1 only.. The most likely cause is that the report is filtered to site 1 only, as indicated by the exhibit showing a filter on SiteId = 1. This restricts the report to items from site 1, excluding site 2. Option A is incorrect because the report uses InventSum, not InventTrans, but that is not the reason for missing site 2 items. Option C is incorrect because financial dimensions are not relevant to the site filter. Option D is incorrect because the report includes items that are not closed (Closed = 0), so that does not exclude site 2 items; the site filter is the issue.

Answer

The report uses InventTrans instead of InventSum.

Answer

The report does not include financial dimensions.

Answer

The report excludes closed inventory transactions.

Question 7

You are the supply chain consultant for a global electronics manufacturer that uses Dynamics 365 Supply Chain Management. The company procures components from multiple vendors and assembles finished goods in three factories: Berlin, Shanghai, and Monterrey. The current process requires planners to manually review demand and supply for each site and create purchase orders. The company wants to automate the generation of purchase requisitions based on forecasted demand and current inventory levels. Additionally, they need to ensure that the system respects vendor lead times and minimum order quantities. You propose using master planning to generate planned purchase orders. However, the procurement manager is concerned that planned orders might be created too frequently for low-demand items, causing an excessive number of small purchases. What should you configure to consolidate planned purchase orders for the same vendor within a defined time window?

Accepted Answer

Configure purchase order consolidation in master planning parameters.. The 'Purchase order consolidation' feature in master planning parameters allows grouping planned purchase orders by vendor into a single purchase order within a defined time window, reducing the number of small orders. Option B is wrong because increasing safety stock levels ensures inventory availability but does not consolidate orders. Option C is wrong because action messages suggest changes to existing orders, such as expediting or delaying, not consolidation. Option D is wrong because a coverage time fence determines how far ahead the system plans, not how orders are consolidated.

Answer

Increase safety stock levels for low-demand items.

Answer

Enable action messages in master planning.

Answer

Set a coverage time fence for each item.

Question 8

You are a functional consultant for a pharmaceutical company implementing Dynamics 365 Supply Chain Management. The company must comply with strict regulatory requirements for traceability and lot control. They produce serialized products where each batch must be tracked from raw material receipt to final product shipment. The production process involves mixing raw materials in a specific sequence and quantity, and the company currently uses paper-based batch records. They want to digitize the process to enforce that operators cannot proceed to the next step unless the previous step is completed and quantities are within specification. Additionally, they need to capture actual consumption of raw materials against the batch order. Which combination of features should you recommend?

Accepted Answer

Use production control with manufacturing execution and material consumption registration.. Production control with manufacturing execution and material consumption registration provides step-by-step guidance, enforces process sequence, and captures actual material consumption. Option A is wrong because quality management with quality orders is for inspections, not for guiding production steps. Option B is wrong because warehouse management is for storage and movement, not for production process enforcement. Option D is wrong because engineering change management is for managing product versions, not for production execution.

Answer

Use quality management with quality orders for each production step.

Answer

Use warehouse management with mobile device menus for production put-away and picking.

Answer

Use engineering change management to control batch record versions.

Question 9

A retail company uses Dynamics 365 Supply Chain Management to manage its distribution network. They have a central warehouse in Chicago and five regional distribution centers (RDCs) across the United States. The company wants to ensure that when a sales order is created for a customer in a specific region, the system automatically suggests fulfillment from the nearest RDC to minimize shipping costs and delivery time. Currently, sales order processing requires manual selection of the warehouse. Which feature should you configure to automate this process?

Accepted Answer

Warehouse assignment. The 'Warehouse assignment' feature in Dynamics 365 Supply Chain Management allows you to define rules that automatically assign a warehouse based on criteria such as customer location or shipping address. Option A is wrong because Transportation management handles freight rates and routes, not warehouse assignment. Option B is wrong because Inventory allocation is for reserving inventory, not for automatically assigning a warehouse. Option C is wrong because Demand forecasting predicts future demand, not fulfillment location.

Answer

Transportation management

Answer

Inventory allocation

Answer

Demand forecasting

Question 10

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

Accepted Answer

Procurement and sourcing. The correct answers are A, B, and E. Procurement and sourcing, Master planning, and Sales and marketing are core modules of Dynamics 365 Supply Chain Management. Option C (Project management and accounting) is part of Dynamics 365 Project Operations, not Supply Chain Management. Option D (Human resources) is part of Dynamics 365 Human Resources.

Answer

Project management and accounting

Answer

Human resources

Question 11

You are a system administrator for a food and beverage company using Dynamics 365 Supply Chain Management. The company produces perishable goods with expiration dates. They currently track inventory by batch, but they need to enforce a first-expiry-first-out (FEFO) picking strategy in their warehouse. When a sales order is picked, the system should automatically suggest the batch with the earliest expiration date. Additionally, if a batch has expired, the system should prevent it from being picked and should quarantine it. What configuration steps should you perform to meet these requirements?

Accepted Answer

Use batch disposition codes and set the reservation hierarchy to batch-above-location.. Batch disposition codes are used to control inventory availability by blocking expired batches, and setting the reservation hierarchy to batch-above-location ensures that the system reserves batches with the earliest expiration date first (FEFO). Option D is incorrect because location-above-batch prioritizes location over batch, which does not enforce FEFO.

Answer

Set up product flavors to categorize batches by expiration date.

Answer

Create quality orders to inspect batches before picking.

Answer

Use batch disposition codes and set the reservation hierarchy to location-above-batch.

Question 12

A manufacturing company uses Dynamics 365 Supply Chain Management with discrete manufacturing. They produce furniture in a make-to-stock environment. The production scheduler creates production orders for batches of 100 chairs. Raw materials are issued from the warehouse to the production floor based on a bill of materials (BOM). The company wants to streamline the process by automatically reserving raw materials when a production order is released, and also to capture the actual raw material consumption during production, rather than posting the full BOM consumption upon order start. Which manufacturing execution feature should you enable?

Accepted Answer

Material consumption registration. 'Material consumption registration' in manufacturing execution allows operators to register actual material usage during production, and automatic reservation can be configured. Option A is wrong because 'Auto-report as finished' automates the reporting of finished goods, not material consumption. Option B is wrong because 'Operation scheduling' is for scheduling operations, not material tracking. Option D is wrong because 'Kanban' is for lean manufacturing, not discrete make-to-stock.

Answer

Operation scheduling

Answer

Auto-report as finished

Answer

Kanban

Question 13

Which TWO capabilities are provided by the Warehouse management module in Dynamics 365 Supply Chain Management?

Accepted Answer

Wave processing. Options B and C are correct. Wave processing allows grouping of loads for efficient picking and shipping, and cluster picking enables picking multiple orders simultaneously—both are core Warehouse management capabilities. Option A (Route planning) belongs to Transportation management. Option D (Quality orders) belongs to Quality management. Option E (Production scheduling) belongs to Production control.

Answer

Route planning

Answer

Quality orders

Answer

Production scheduling

Question 14

You are a supply chain analyst for a company that uses Dynamics 365 Supply Chain Management. The company procures steel coils from multiple suppliers. The procurement manager wants to evaluate supplier performance based on on-time delivery and price variance. They need a dashboard that shows a scorecard for each supplier, summarizing the percentage of deliveries received on or before the promised date, and the average price deviation from the purchase order price. Which tool should you use to create this dashboard without custom development?

Accepted Answer

Power BI. Power BI can connect to Dynamics 365 data and create visual dashboards for supplier scorecards. Option A is wrong because the Procurement and sourcing module provides purchase order management but not a configurable scorecard dashboard. Option B is wrong because Vendor collaboration is for communication with vendors, not analytics. Option D is wrong because Excel is not a dashboard tool for real-time scorecards without manual effort.

Answer

Procurement and sourcing module

Answer

Vendor collaboration

Answer

Excel integration

Question 15

A distribution company uses Dynamics 365 Supply Chain Management to manage inventory across multiple warehouses. They want to ensure that when inventory levels for a critical item fall below the reorder point, a purchase requisition is automatically generated. Currently, the buyer must monitor stock levels manually and create purchase orders. The company has set up item coverage groups and reorder points in the system. What is the next step to automate the generation of purchase requisitions?

Accepted Answer

Run master planning to generate planned orders.. Master planning must be run to calculate net requirements and generate planned orders based on coverage settings. Option A is wrong because the reorder point is already set, so that is not the missing step. Option B is wrong because setting up vendor accounts is necessary for purchase orders, but without running master planning, no purchase requisitions are generated. Option D is wrong because configuring approval workflows is for the approval process after purchase requisitions are generated, not for triggering generation.

Answer

Define reorder point for the item.

Answer

Set up vendor accounts for the items.

Answer

Configure purchase order approval workflow.