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

Question 1

Which TWO actions can be performed using the Dynamics 365 Supply Chain Management mobile warehouse app?

Accepted Answer

Receive purchase orders. Option A (Receive purchase orders) is correct because the Warehouse Management mobile app includes inbound receiving flows such as the Purchase order receiving and Put away work processes, allowing workers to register received quantities against a purchase order directly from a handheld device. Option D (Perform cycle counting) is correct because the mobile app supports cycle counting work through the Cycle count menu item, where workers enter counted quantities for a location or item, and the system reconciles variances against on-hand inventory. Option B (Create sales orders) is incorrect because sales orders are created in the Supply Chain Management web client or via integration, not through the warehouse mobile app, which only executes warehouse work. Option C (Generate advanced shipping notices) is incorrect because ASNs are typically generated from outbound processes or integrations in the back office, not from the mobile device. Option E (Run master planning) is incorrect because master planning is a batch/back-office planning process executed in the web client, not an action available in the mobile warehouse app.

Answer

Create sales orders

Answer

Generate advanced shipping notices

Answer

Run master planning

Question 2

Which TWO are benefits of using Dynamics 365 Supply Chain Management with IoT integration?

Accepted Answer

Real-time asset tracking. Option C (Real-time asset tracking) is correct because IoT integration in Dynamics 365 Supply Chain Management streams telemetry from connected devices and sensors into the system, allowing inventory, containers, and other assets to be monitored and located continuously as they move through the supply chain. Option E (Predictive maintenance on equipment) is correct because IoT sensor data (vibration, temperature, usage hours) feeds into Dynamics 365 Supply Chain Management's asset management capabilities, enabling condition-based alerts and maintenance scheduling before equipment fails. The remaining options do not belong: A (Real-time customer credit check) is a finance/credit management function unrelated to IoT device data, B (Vendor negotiation) is a procurement relationship activity performed by people rather than an IoT-driven benefit, and D (Automated financial closing) is a financial period-end process that does not depend on IoT telemetry.

Answer

Real-time customer credit check

Answer

Vendor negotiation

Answer

Automated financial closing

Question 3

Refer to the exhibit. A purchase order is confirmed but the lines are still open. What does this indicate?

Accepted Answer

The purchase order is approved but not yet received. In Dynamics 365 Supply Chain Management, a purchase order status of 'Confirmed' means the order has been approved and committed to the vendor, but the 'Open order' / 'Open lines' status indicates no receipt has yet been posted against the lines. So the PO is approved but not yet received.

Answer

The purchase order is pending approval

Answer

The purchase order is fully invoiced

Answer

The purchase order is fully received

Question 4

Refer to the exhibit. The production order status is 'Started' and BOM consumption is set to 'Manual'. What must happen before the order can be reported as finished?

Accepted Answer

A picking list must be registered to consume raw materials. When BOM consumption is set to Manual, raw materials are not automatically consumed when the production order starts. A picking list must be posted/registered to physically consume the components before the order can be reported as finished. This ensures inventory is correctly relieved and costs are captured.

Answer

The system automatically consumes raw materials

Answer

The order must be scheduled again

Answer

The order must be estimated

Question 5

Refer to the exhibit. A transfer order is shipped but not received. Which step should be performed next?

Accepted Answer

Register the receipt at WH-02. After a transfer order is shipped, the next step is for the receiving warehouse (WH-02) to register the receipt. This completes the transfer process. Option B is correct. Option A is incorrect because the order has already been shipped. Option C is not standard procedure, and Option D would only be needed if the original order was cancelled.

Answer

Ship the order again

Answer

Delete the transfer order

Answer

Create a new transfer order

Question 6

A manufacturing company uses Dynamics 365 Supply Chain Management. The production planner notices that work orders are not being automatically generated when raw material inventory falls below the reorder point. Which configuration should the administrator verify?

Accepted Answer

Master planning setup. Master planning in Dynamics 365 Supply Chain Management is responsible for generating planned orders (including production orders) based on inventory levels, demand, and reorder points. If work orders are not being generated when inventory falls below the reorder point, the master planning setup (e.g., coverage settings, reorder point, planned order type) should be verified.

Answer

Product configuration model

Answer

Production control parameters

Answer

Quality management configuration

Question 7

A company uses Dynamics 365 Supply Chain Management to manage warehouse operations. They want to ensure that workers are guided step-by-step during the picking process using mobile devices. Which feature should they implement?

Accepted Answer

Warehouse Management. Warehouse Management in Dynamics 365 Supply Chain Management provides mobile-device-driven, step-by-step work execution for picking, packing, put-away, and counting. It uses work templates, location directives, and the Warehouse Management mobile app to guide workers through each task in sequence.

Answer

Transport Management

Answer

Inventory Management

Answer

Production Control

Question 8

A global manufacturer uses Dynamics 365 Supply Chain Management. They need to configure a product that is manufactured in multiple variants based on size and color, with each variant having its own bill of materials (BOM). Which product configuration approach should they use?

Accepted Answer

Product master with predefined variants. A product master with predefined variants allows a single product definition to have multiple variants (e.g., size and color), each with its own bill of materials, routing, and other variant-specific data. This is the standard approach when variants are known and finite, and each requires distinct manufacturing inputs. It supports variant-specific BOMs without creating separate products.

Answer

Single product with multiple BOM versions

Answer

Product master with constraint-based configuration

Answer

Catch weight product

Question 9

A company uses Dynamics 365 Supply Chain Management. They want to ensure that when a purchase order is received, the system automatically creates a quality order for inspection. Which configuration is required?

Accepted Answer

Set up a quality association for purchase order product receipt. In Dynamics 365 Supply Chain Management, automatic quality order creation on receipt is driven by a quality association that links an item (or item group) to a test group and specifies the document type and reference — here, Purchase order product receipt. When the receipt is posted, the association triggers creation of the quality order for inspection. This is the standard configuration path in the Quality management module.

Answer

Set inventory status to blocking

Answer

Configure nonconformance management

Answer

Define item sampling for the product

Question 10

A company wants to use Dynamics 365 Supply Chain Management to optimize their transportation costs and delivery schedules. Which module should they primarily use?

Accepted Answer

Transportation Management. Transportation Management. The Transportation Management module is specifically designed to manage shipping, freight, and logistics optimization, which directly aligns with the goal of optimizing transportation costs and delivery schedules. Option A (Procurement and Sourcing) is incorrect because it manages purchasing and supplier relationships, not transportation. Option B (Master Planning) is incorrect as it focuses on supply and demand planning, not transportation optimization. Option D (Warehouse Management) is incorrect because it deals with internal warehouse operations, not transportation.

Answer

Procurement and Sourcing

Answer

Master Planning

Answer

Warehouse Management

Question 11

A company uses Dynamics 365 Supply Chain Management and wants to provide real-time visibility of inventory levels across multiple warehouses to external partners. Which feature should they use?

Accepted Answer

Inventory Visibility add-in. The Inventory Visibility add-in for Dynamics 365 Supply Chain Management provides a highly scalable, real-time inventory query service that exposes inventory levels across warehouses and legal entities via APIs. It is specifically designed to share on-hand data with external partners and downstream systems without hitting the transactional database directly. This makes it the correct choice for real-time visibility to external partners.

Answer

Master planning

Answer

Inventory journals

Answer

Warehouse mobile app

Question 12

A company manufactures high-value equipment and needs to track each individual item's location, status, and service history throughout its lifecycle. Which capability should they use?

Accepted Answer

Asset Management. Asset Management (also known as Fixed Asset Management) is designed to track equipment lifecycle, location, and service history for individual high-value items. Option A is incorrect because Warehouse Management focuses on storage and picking of inventory, not asset lifecycle. Option B is incorrect because Batch tracking is intended for lot-controlled items, not individual equipment tracking. Option D is incorrect because Product configuration is used to define variants of a product, not to track service history.

Answer

Warehouse Management

Answer

Batch tracking

Answer

Product configuration

Question 13

A company uses Dynamics 365 Supply Chain Management. They want to automatically send purchase orders to suppliers and receive order confirmations electronically. Which feature should they implement?

Accepted Answer

Vendor collaboration. Vendor collaboration is the Dynamics 365 SCM feature that provides a supplier-facing portal where vendors can receive purchase orders electronically, confirm them, update delivery dates, and collaborate on consignment and invoice details. It directly enables the electronic exchange of POs and order confirmations with suppliers, which is exactly what the company wants.

Answer

Purchase requisition

Answer

Procurement and Sourcing

Answer

Inventory Visibility

Question 14

A company uses Dynamics 365 Supply Chain Management to plan production. They need to ensure that materials are available to meet production schedules without overstocking. Which module would they use to balance supply and demand?

Accepted Answer

Master Planning. Master Planning in Dynamics 365 Supply Chain Management is the module responsible for balancing supply and demand. It evaluates current inventory, open production orders, purchase orders, and demand forecasts to generate planned orders that ensure materials are available without overstocking. This is the core purpose of master planning (MRP) — netting requirements against supply to produce a feasible plan.

Answer

Production Control

Answer

Inventory Management

Answer

Warehouse Management

Question 15

Which TWO features are available in Dynamics 365 Supply Chain Management to support lean manufacturing?

Accepted Answer

Value stream mapping. Value stream mapping (B) is a core lean manufacturing tool in Dynamics 365 Supply Chain Management, used to visualize and analyze the flow of materials and information across production and logistics processes to identify waste and improvement opportunities. Kanban scheduling (E) is also a native lean capability, supporting pull-based production and replenishment through kanban rules, cards, and signals that control material flow and just-in-time execution. Batch balancing (A) belongs to process manufacturing and is used to adjust ingredient quantities in batch orders, not a lean-specific feature. Product configuration (C) relates to product variant and constraint-based configuration for sales and production orders, not lean manufacturing. Quality orders (D) support quality management and testing processes, which are not part of the lean manufacturing feature set.

Answer

Batch balancing

Answer

Product configuration

Answer

Quality orders