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

Question 1

A company uses Dynamics 365 Supply Chain Management for process manufacturing. They need to enforce that a specific formula version is used for a product based on its shelf life. Which THREE configurations are required?

Accepted Answer

Set up shelf life (best before date) tracking for the product. Options A, B, and D are correct. Formula versions can have validity dates, catch weight is common in process manufacturing, and shelf life (best before date) tracking is used for expiration. Option C is for discrete manufacturing. Option E is for warehouse management, not formula enforcement.

Answer

Create a BOM version instead of a formula version

Answer

Configure a location directive for the warehouse

Question 2

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.. Option B is correct because quality associations can trigger inspection upon receipt, location directives with 'License plate required' and 'Temperature zone' can enforce cold storage, FEFO is enforced by reservation hierarchy, and temperature monitoring with threshold alerts can trigger quarantine. Option A is missing inspection and quarantine. Option C uses FIFO, not FEFO. Option D does not include temperature monitoring.

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 3

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.. Option D is correct because a production order is created from a sales order for make-to-order, product configuration models allow specific BOMs and routes, scheduling considers material and capacity, and Copilot can assist. Option A uses a sales order without production. Option B uses a purchase order. Option C uses a blanket order.

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 4

A manufacturing company uses Dynamics 365 Supply Chain Management. The production scheduler notices that a critical raw material is frequently out of stock, causing delays. The procurement team manually places purchase orders only when stock reaches zero. Which feature should be configured to automatically trigger purchase orders based on demand forecasts and current inventory levels?

Accepted Answer

Master planning. Option C is correct because Master planning in Dynamics 365 Supply Chain Management uses demand forecasts, current inventory, and lead times to generate planned purchase orders automatically. Option A is wrong because inventory closing updates financial postings, not procurement. Option B is wrong because quality management handles inspections, not replenishment. Option D is wrong because warehouse management focuses on storage and movement, not procurement planning.

Answer

Warehouse management

Answer

Inventory closing

Answer

Quality management

Question 5

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

Accepted Answer

FIFO. Options A and D are correct. FIFO (First In, First Out) and Weighted average are standard costing methods. Option B is wrong because LIFO is not supported in standard Dynamics 365 Supply Chain Management. Option C is wrong because Standard cost is a costing method but not an inventory costing method; it is a costing basis. Option E is wrong because Fixed cost is not an inventory valuation method.

Answer

LIFO

Answer

Standard cost

Answer

Fixed cost

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.. Option A is correct because the exhibit shows a filter on SiteId = 1, which restricts the report to site 1 only. Option B is wrong because the report query selects from InventSum, not InventTrans; the missing items are due to the site filter. Option C is wrong because the condition Closed = 0 excludes closed inventory, but items from site 2 are not returned because of the site filter. Option D is wrong because the site filter is applied, not the financial dimension.

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.. Option C is correct because the 'Purchase order consolidation' feature in master planning allows grouping planned orders by vendor into a single purchase order, reducing the number of small orders. Option A is wrong because the 'Coverage time fence' determines how far ahead the system plans, not consolidation. Option B is wrong because 'Action messages' suggest changes to existing orders, not consolidation. Option D is wrong because 'Safety stock' ensures inventory availability but does not consolidate orders.

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.. Option A is correct because production control with manufacturing execution and material consumption registration provides step-by-step guidance, enforces process sequence, and captures actual material consumption. Option B is wrong because quality management with quality orders is for inspections, not for guiding production steps. Option C 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. Option B is correct because 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 'Inventory allocation' is for reserving inventory, not for automatically assigning a warehouse. Option C is wrong because 'Transportation management' handles freight rates and routes, not warehouse assignment. Option D 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. Options B, C, and D are correct. Master planning, Procurement and sourcing, and Sales and marketing are core modules. Option A is wrong because Human resources is part of Dynamics 365 Human Resources, not Supply Chain Management. Option E is wrong because Project management and accounting is part of Dynamics 365 Project Operations, not Supply Chain Management.

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.. Option D is correct because batch disposition codes allow you to define rules for inventory availability (e.g., block expired batches), and reservation hierarchy enables FEFO by setting the batch to be above location. Option A is wrong because quality orders are for inspections, not for FEFO picking. Option B is wrong because product flavors are not related to expiration date management. Option C is wrong while option D is correct because the correct approach is to use batch disposition codes to block expired inventory and reservation hierarchy to 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. Option C is correct because '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 A and D are correct. Wave processing allows grouping of loads for efficient picking and shipping. Cluster picking enables picking multiple orders simultaneously. Option B is wrong because Route planning is part of Transportation management. Option C is wrong because Quality orders are part of Quality management. Option E is wrong because Production scheduling is part of 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. Option D is correct because Power BI can connect to Dynamics 365 data and create visual dashboards for supplier scorecards. Option A is wrong because 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 C 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.. Option B is correct because master planning must be run to calculate net requirements and generate planned orders based on coverage settings. Option A is wrong because setting up vendors is necessary for purchase orders, but without master planning, no orders are generated. Option C is wrong because approval workflows are for approval after generation, not for triggering generation. Option D is wrong because the reorder point is already set; the missing step is running master planning.

Answer

Define reorder point for the item.

Answer

Set up vendor accounts for the items.

Answer

Configure purchase order approval workflow.