MB-920 Describe Dynamics 365 Supply Chain Management Practice Test 22 — 15 Questions

Question 1

Which THREE processes are supported by the Production control module in Dynamics 365 Supply Chain Management?

Accepted Answer

Process manufacturing. Options A, B, and D are correct. Discrete manufacturing, process manufacturing, and lean manufacturing are all supported production types. Option C is wrong because Project manufacturing is handled by Dynamics 365 Project Operations. Option E is wrong because Service management is part of Dynamics 365 Customer Service or Project Operations.

Answer

Project manufacturing

Answer

Service management

Question 2

You are a Dynamics 365 consultant for a chemical company that uses process manufacturing. They produce adhesives in batches, and the quality of the final product depends on precise adherence to the formula. The company wants to implement a system that prevents operators from starting a production batch unless the raw materials meet quality specifications (e.g., viscosity and purity). Additionally, the system should record the actual test results for each material used in the batch. Which feature combination should you recommend?

Accepted Answer

Quality management with quality orders linked to production. Quality management with quality orders can be integrated with production control to enforce material testing before production. Option A is wrong because batch disposition codes control inventory availability, not production start. Option C is wrong because inventory blocking is a manual process, not automated. Option D is wrong because material consumption registration tracks usage, not quality compliance.

Answer

Batch disposition codes and reservation hierarchy

Answer

Inventory blocking and quarantine management

Answer

Material consumption registration and production journals

Question 3

A company uses Dynamics 365 Supply Chain Management to manage its supply chain. They have multiple vendors for the same raw material. The procurement team wants to receive automatic suggestions on which vendor to select when creating purchase orders, based on the lowest price and best delivery history. Currently, the buyers research manually. Which feature should they use?

Accepted Answer

Vendor scorecards and rating. Vendor scorecards and rating in Dynamics 365 Supply Chain Management allow procurement teams to evaluate and compare vendors based on criteria such as price and delivery history, enabling automatic suggestions when creating purchase orders. Option A is incorrect because request for quotation is a process to solicit bids from vendors, not a tool for automatic suggestion. Option B is incorrect because purchase agreements are contracts that define terms, not a recommendation mechanism. Option C is incorrect because vendor collaboration is a portal for communication and document sharing, not for vendor evaluation and suggestion.

Answer

Request for quotation

Answer

Purchase agreements

Answer

Vendor collaboration

Question 4

You are the supply chain manager at a manufacturing company using Dynamics 365 Supply Chain Management. The company operates three warehouses: WH01 (finished goods), WH02 (raw materials), and WH03 (work-in-process). You need to configure inventory visibility for real-time demand planning. The company requires that inventory levels from all three warehouses be viewable in a single dashboard, with the ability to allocate stock to sales orders before physical pick. Additionally, you must ensure that the system can handle soft reservations across warehouses without impacting the physical inventory counts. You have the following options: A. Configure the Inventory Visibility Service add-in and set up soft reservations using the Allocation API. B. Use the standard Inventory On-hand report and manually reserve stock per warehouse. C. Implement Warehouse Management System (WMS) and use the wave execution to allocate stock. D. Set up Product Information Management with transfer orders to move stock between warehouses. Which option should you choose?

Accepted Answer

Configure the Inventory Visibility Service add-in and set up soft reservations using the Allocation API.. The Inventory Visibility Service add-in provides real-time multi-warehouse visibility and supports soft reservations via the Allocation API, which does not affect physical inventory. Option B is incorrect because manual reservation per warehouse is not real-time and doesn't offer a unified dashboard. Option C is incorrect because WMS wave execution is for physical warehouse operations, not for soft reservations across warehouses. Option D is incorrect because transfer orders are for physical movement, not for soft reservation visibility.

Answer

Use the standard Inventory On-hand report and manually reserve stock per warehouse.

Answer

Implement Warehouse Management System (WMS) and use the wave execution to allocate stock.

Answer

Set up Product Information Management with transfer orders to move stock between warehouses.

Question 5

A distribution company uses Dynamics 365 Supply Chain Management to manage its supply chain. Recently, the company has been facing issues with late deliveries to customers. The root cause analysis shows that the planning department is not accurately accounting for lead times from suppliers. The company wants to improve the accuracy of purchase order delivery dates. You need to configure the system to automatically calculate purchase order delivery dates based on vendor lead times and calendar exceptions. The company uses the Master Planning module for supply planning. You have the following options: A. Configure the Warehouse Management module to use the shipment consolidation functionality to adjust delivery dates. B. Manually adjust delivery dates on each purchase order based on phone calls with vendors. C. Use the Procurement and Sourcing module to create blanket purchase agreements that override lead times. D. Set up vendor lead times in the Vendor master and configure the purchase lead time field in the Product master. Then run Master Planning to generate planned purchase orders with correct delivery dates. Which option should you choose?

Accepted Answer

Set up vendor lead times in the Vendor master and configure the purchase lead time field in the Product master. Then run Master Planning to generate planned purchase orders with correct delivery dates.. Vendor lead times and product lead times are used by Master Planning to calculate delivery dates automatically. By setting up vendor lead times in the Vendor master and configuring the purchase lead time field in the Product master, Master Planning can generate planned purchase orders with accurate delivery dates based on lead times and calendar exceptions. Option A is incorrect because shipment consolidation in Warehouse Management is for outbound shipments, not for purchase order lead times. Option B is incorrect because manual adjustments are error-prone and not scalable. Option C is incorrect because blanket purchase agreements are for pricing and terms, not for lead time calculation.

Answer

Configure the Warehouse Management module to use the shipment consolidation functionality to adjust delivery dates.

Answer

Manually adjust delivery dates on each purchase order based on phone calls with vendors.

Answer

Use the Procurement and Sourcing module to create blanket purchase agreements that override lead times.

Question 6

A food processing company uses Dynamics 365 Supply Chain Management. They need to track raw materials by lot number for quality control and recall management. The company purchases ingredients from multiple vendors, and each lot must be traceable from the vendor to the final product. The company also needs to ensure that when a product is produced, the system automatically consumes the raw materials based on the batch order. You need to configure the system to support lot tracking and automatic consumption. You have the following options: A. Enable lot tracking in the Product master for each raw material. Use the Batch order process with automatic consumption set to 'At start' or 'At completion'. B. Use the Warehouse Management module to configure location directives for lot-controlled items. C. Enable serial tracking for all raw materials and manually enter serial numbers during production. D. Use the Inventory Management module to create inventory adjustments for lot consumption. Which option should you choose?

Accepted Answer

Enable lot tracking in the Product master for each raw material. Use the Batch order process with automatic consumption set to 'At start' or 'At completion'.. Enabling lot tracking in the Product master for each raw material and using the batch order process with automatic consumption set to 'At start' or 'At completion' ensures full lot traceability from vendor to final product and automates raw material consumption during production. Option D is incorrect because inventory adjustments are not designed for production consumption; they are used for manual stock corrections, not for automatically consuming raw materials during production.

Answer

Use the Warehouse Management module to configure location directives for lot-controlled items.

Answer

Enable serial tracking for all raw materials and manually enter serial numbers during production.

Answer

Use the Inventory Management module to create inventory adjustments for lot consumption.

Question 7

A small business uses Dynamics 365 Supply Chain Management to manage inventory. They currently sell products from a single warehouse. The owner wants to start tracking the cost of goods sold (COGS) for each product using the standard costing method. You need to set up the system to calculate COGS correctly. You have the following options: A. Enable standard costing in the Inventory model group for each product and run the Inventory close process periodically. B. Use the FIFO costing method and run the Inventory recalculation. C. Use the Moving average costing method and rely on automatic posting to the general ledger. D. Configure the Product master to use the Purchase price as the cost price and post directly to COGS. Which option should you choose?

Accepted Answer

Enable standard costing in the Inventory model group for each product and run the Inventory close process periodically.. Standard costing requires setting the inventory model group to Standard cost and running the Inventory close process periodically to calculate variances and determine the actual COGS. Option A is incorrect because FIFO is a different costing method (first in, first out) and does not use standard costing. Option B is incorrect because using purchase price directly does not reflect standard costing methodology; standard costing uses predetermined costs. Option C is incorrect because moving average is a different costing method that calculates a weighted average cost after each receipt.

Answer

Use the FIFO costing method and run the Inventory recalculation.

Answer

Configure the Product master to use the Purchase price as the cost price and post directly to COGS.

Answer

Use the Moving average costing method and rely on automatic posting to the general ledger.

Question 8

A global manufacturer uses Dynamics 365 Supply Chain Management. They produce high-value machinery and need to track the exact materials used in each finished good for service and warranty purposes. The company uses discrete manufacturing with production orders. Currently, the system estimates material consumption based on the bill of materials (BOM), but actual consumption may vary due to scrap or rework. The company wants to capture actual material consumption in real time on the shop floor using handheld scanners. You need to configure the system to allow shop floor workers to report material consumption against a production order. You have the following options: A. Use the Production floor execution interface and enable the 'Report as finished' and 'Report as consumed' options on the production order. B. Use the Warehouse Management mobile app to perform a raw material picking and consumption process via a mobile device menu item. C. Use the BOM version to force exact consumption and ignore variances. D. Use the Inventory adjustments journal to manually reduce raw material inventory after production. Which option should you choose?

Accepted Answer

Use the Warehouse Management mobile app to perform a raw material picking and consumption process via a mobile device menu item.. The Warehouse Management mobile app can be configured with a menu item for raw material picking and consumption, allowing real-time scanning and actual consumption capture on the shop floor. Option A is incorrect because the Production floor execution interface is primarily for reporting progress and finishing, but consumption reporting via that interface does not provide the same real-time scanning capability as the warehouse mobile app. Option B is incorrect because the Inventory adjustments journal is a manual, after-the-fact process that does not capture consumption in real time and is prone to errors. Option D is incorrect because forcing exact consumption via the BOM version ignores actual variances such as scrap or rework, which defeats the purpose of tracking actual material usage.

Answer

Use the Production floor execution interface and enable the 'Report as finished' and 'Report as consumed' options on the production order.

Answer

Use the Inventory adjustments journal to manually reduce raw material inventory after production.

Answer

Use the BOM version to force exact consumption and ignore variances.

Question 9

A retail company uses Dynamics 365 Supply Chain Management to manage its supply chain. The company has many stores that replenish inventory from a central distribution center. The company wants to use demand-driven replenishment to automatically generate purchase orders for the distribution center based on sales forecasts and current inventory levels. The company uses the Master Planning module. You need to configure the system to generate planned purchase orders for the distribution center. You have the following options: A. Set up a coverage group for the distribution center with the coverage code 'Min/Max' and run Master Planning. B. Set up intercompany orders between the stores and the distribution center. C. Use the Demand forecasting module to generate forecasts and manually create purchase orders. D. Configure the Product master with a reorder point and use inventory journals to create purchase orders. Which option should you choose?

Accepted Answer

Set up a coverage group for the distribution center with the coverage code 'Min/Max' and run Master Planning.. Setting up a coverage group for the distribution center with the coverage code 'Min/Max' and running Master Planning allows the system to automatically generate planned purchase orders based on minimum and maximum inventory levels, supporting demand-driven replenishment. Option A is incorrect because configuring the product master with a reorder point and using inventory journals requires manual intervention. Option B is incorrect because the Demand forecasting module generates forecasts but still requires manual creation of purchase orders. Option D is incorrect because intercompany orders are for transactions between legal entities, not for replenishment planning.

Answer

Configure the Product master with a reorder point and use inventory journals to create purchase orders.

Answer

Use the Demand forecasting module to generate forecasts and manually create purchase orders.

Answer

Set up intercompany orders between the stores and the distribution center.

Question 10

A company uses Dynamics 365 Supply Chain Management with Warehouse Management (WMS). The warehouse manager wants to optimize the picking process by grouping multiple orders into a single picking wave. The company uses cluster picking and wants workers to pick items for multiple orders at once. You need to configure the system to support cluster picking. You have the following options: A. Create a wave template that uses cluster picking and assign it to the appropriate warehouse. Configure a mobile device menu item for cluster picking. B. Use the work creation process to combine orders into a single work order. C. Configure the location directives to direct all picks to a single location. D. Use the load planning workbench to create loads and then pick by load. Which option should you choose?

Accepted Answer

Create a wave template that uses cluster picking and assign it to the appropriate warehouse. Configure a mobile device menu item for cluster picking.. Cluster picking is enabled via wave templates and mobile device menu items specifically for cluster picking. Option A is incorrect because location directives are for directing picks, not for grouping orders. Option C is incorrect because load planning is for shipments, not for cluster picking within a wave. Option D is incorrect because the work creation process does not combine orders into a single work order for cluster picking.

Answer

Configure the location directives to direct all picks to a single location.

Answer

Use the load planning workbench to create loads and then pick by load.

Answer

Use the work creation process to combine orders into a single work order.

Question 11

A medical device manufacturer uses Dynamics 365 Supply Chain Management. They are subject to strict regulatory requirements requiring complete traceability of each device to its raw material lots. The company uses process manufacturing with batch orders. Each finished device has a unique serial number that must be linked to the lot numbers of all raw materials used. The company also needs to maintain a genealogy of components. You need to configure the system to capture this traceability. You have the following options: A. Enable serial tracking for the finished device and lot tracking for raw materials. Use the batch order to record the consumption of raw material lots against the serial number. B. Use the Product master to assign a serial number to the finished good and manually enter lot numbers in a free text field. C. Use the Warehouse Management module to create location labels that include serial and lot information. D. Use the Quality management module to create quality orders for each batch and associate them with serial numbers. Which option should you choose?

Accepted Answer

Enable serial tracking for the finished device and lot tracking for raw materials. Use the batch order to record the consumption of raw material lots against the serial number.. It properly uses serial and lot tracking. In Dynamics 365 Supply Chain Management, enabling serial tracking for the finished device and lot tracking for raw materials allows the batch order to record the consumption of raw material lots against the serial number of the finished good. This captures the full genealogy and traceability required. Option A is incorrect because quality orders are used for inspections, not for capturing traceability relationships. Option C is incorrect because manual entry of lot numbers in a free text field is not an integrated or reliable method for traceability. Option D is incorrect because location labels in Warehouse Management do not capture the genealogy of components.

Answer

Use the Quality management module to create quality orders for each batch and associate them with serial numbers.

Answer

Use the Product master to assign a serial number to the finished good and manually enter lot numbers in a free text field.

Answer

Use the Warehouse Management module to create location labels that include serial and lot information.

Question 12

A company uses Dynamics 365 Supply Chain Management. The procurement manager wants to automate the creation of purchase orders from purchase requisitions that are approved by an approval workflow. The company uses procurement categories to classify purchases. You need to configure the system so that when a purchase requisition is approved, a purchase order is automatically created. You have the following options: A. Set up a purchase requisition workflow that includes the 'Create purchase order' action as part of the workflow. B. Manually create purchase orders after the requisition is approved. C. Use the Procurement and Sourcing module to set up a purchase agreement that automatically generates purchase orders. D. Use the Master Planning module to generate planned purchase orders from requisitions. Which option should you choose?

Accepted Answer

Set up a purchase requisition workflow that includes the 'Create purchase order' action as part of the workflow.. A purchase requisition workflow can include the 'Create purchase order' action, which automatically generates a purchase order upon approval. Option A is incorrect because purchase agreements are used for pricing and terms, not for automatic creation from requisitions. Option B is incorrect because it requires manual intervention. Option D is incorrect because Master Planning generates planned purchase orders, which are suggestions and not directly created from approved requisitions.

Answer

Use the Procurement and Sourcing module to set up a purchase agreement that automatically generates purchase orders.

Answer

Manually create purchase orders after the requisition is approved.

Answer

Use the Master Planning module to generate planned purchase orders from requisitions.

Question 13

A company uses Dynamics 365 Supply Chain Management to manage inventory. They want to use the Inventory turnover ratio to analyze how quickly inventory is sold. The finance team needs to see this ratio on a dashboard. You need to configure the system to calculate and display the inventory turnover ratio. You have the following options: A. Use the Inventory value report and calculate the ratio manually in Excel. B. Use the Power BI content pack for Dynamics 365 Supply Chain Management, which includes inventory turnover measures. C. Use the Inventory aging report to estimate turnover. D. Use the Warehouse Management module to track movements and calculate turnover. Which option should you choose?

Accepted Answer

Use the Power BI content pack for Dynamics 365 Supply Chain Management, which includes inventory turnover measures.. The Power BI content pack includes pre-built measures for inventory turnover. Option A is incorrect because it requires manual calculation. Option C is incorrect because the Inventory aging report is for analyzing the age of inventory, not turnover rate. Option D is incorrect because the Warehouse Management module is focused on warehouse operations, not financial analytics.

Answer

Use the Inventory value report and calculate the ratio manually in Excel.

Answer

Use the Inventory aging report to estimate turnover.

Answer

Use the Warehouse Management module to track movements and calculate turnover.

Question 14

A company uses Dynamics 365 Supply Chain Management with the Warehouse Management module. They receive goods from multiple vendors and need to put them away efficiently. The warehouse uses a directed putaway strategy based on location profiles and unit load constraints. The warehouse manager wants to optimize putaway by grouping similar items together in the same zone. You need to configure the system to automatically direct putaway to appropriate locations based on location profile and unit load. You have the following options: A. Configure location directives for putaway with appropriate query criteria for location profiles and unit load constraints. Set up work templates to create work for putaway. B. Use the mobile device menu items to manually select locations for each item. C. Use the Inventory management module to set up location groups and manually assign items to locations. D. Use the Product master to assign a default location for each item. Which option should you choose?

Accepted Answer

Configure location directives for putaway with appropriate query criteria for location profiles and unit load constraints. Set up work templates to create work for putaway.. Location directives and work templates automate the putaway process based on location profiles and constraints. Configuring location directives with appropriate query criteria allows the system to direct putaway to locations that match the location profile and unit load constraints, enabling grouping of similar items in the same zone. Work templates then create the putaway work automatically. Option A is incorrect because assigning a default location per product does not use directed putaway logic. Option B is incorrect because manually assigning items to locations is not automated. Option C is incorrect because mobile device menu items can be used for execution but not for configuring the directed putaway strategy.

Answer

Use the Product master to assign a default location for each item.

Answer

Use the Inventory management module to set up location groups and manually assign items to locations.

Answer

Use the mobile device menu items to manually select locations for each item.

Question 15

Which TWO of the following are features of Dynamics 365 Supply Chain Management that enable real-time visibility into inventory across multiple warehouses?

Accepted Answer

Inventory Visibility Service add-in. The Inventory Visibility Service add-in (C) provides real-time visibility into inventory across multiple warehouses, enabling soft reservations and multi-warehouse sourcing. The Power BI content pack for Dynamics 365 Supply Chain Management (D) offers real-time dashboards for inventory analysis across locations. The Inventory aging report (A) is a historical view, not real-time. The Procurement and Sourcing module (B) focuses on purchasing processes, not cross-warehouse visibility. The Warehouse Management mobile app (E) is used for scanning and operational tasks within a single warehouse, not for visibility across warehouses.

Answer

Inventory aging report

Answer

Procurement and Sourcing module

Answer

Warehouse Management mobile app