MB-920 Describe Dynamics 365 Supply Chain Management Practice Test 24 — 15 Questions

Question 1

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?

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

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 2

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 the AI feature within Dynamics 365 Supply Chain Management that provides predictive insights and suggestions for disruptions. It uses AI to analyze data and recommend actions, such as alternative suppliers or inventory adjustments. This directly addresses the need to predict supplier delays and suggest alternatives.

Answer

Copilot for sales orders

Answer

Inventory optimization

Answer

Production scheduling

Question 3

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 with quality orders in Dynamics 365 Supply Chain Management is designed to enforce inspection of inbound shipments. You can configure quality associations to automatically generate quality orders for specific vendors or items upon receipt, ensuring inspection before put-away.

Answer

Production control

Answer

Outbound load planning

Answer

Work creation policies

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. Master planning (option C) is the correct feature because it automatically generates planned purchase orders by netting demand forecasts against current on-hand inventory and existing supply, exactly addressing the scenario where procurement reacts only when stock hits zero. It uses coverage settings, lead times, and forecast requirements to trigger replenishment before stockouts occur. Warehouse management (A) handles physical storage and movement of goods, not demand-driven order generation. Inventory closing (B) is a period-end cost settlement process, and Quality management (D) governs inspection and quality control, neither of which triggers purchase orders.

Answer

Warehouse management

Answer

Inventory closing

Answer

Quality management

Question 5

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 inventory value report in Dynamics 365 Supply Chain Management can be filtered by site, warehouse, and other dimensions. If the report does not include items from site 2, the most likely cause is that the report configuration has a filter applied to only include site 1. This is a common configuration issue where the user's site is excluded.

Answer

The report uses InventTrans instead of InventSum.

Answer

The report does not include financial dimensions.

Answer

The report excludes closed inventory transactions.

Question 6

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.. Configuring purchase order consolidation in master planning parameters allows the system to consolidate planned purchase orders for the same vendor within a defined time window, reducing the number of small purchases. This directly addresses the procurement manager's concern about excessive small 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 7

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 directly addresses the requirement to enforce step-by-step completion and capture actual raw material consumption against the batch order. Manufacturing execution allows operators to register each production step and prevents proceeding until the previous step is completed and quantities are within specification. Material consumption registration captures the actual quantities of raw materials used, enabling traceability from raw material receipt to final product shipment.

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 8

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 9

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 (C) is correct because it is a business analytics service that can connect to Dynamics 365 Supply Chain Management data and create interactive dashboards and scorecards without custom development. It provides built-in visualizations and can calculate metrics like on-time delivery percentage and price variance using DAX or Power Query.

Answer

Procurement and sourcing module

Answer

Vendor collaboration

Answer

Excel integration

Question 10

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

Accepted Answer

Process manufacturing. The Production control module in Dynamics 365 Supply Chain Management supports three production types: Process manufacturing (A), which uses formulas, co-products/by-products, and batch orders for industries like chemicals and food; Discrete manufacturing (B), which uses bills of materials (BOMs) and routes to produce distinct countable units; and Lean manufacturing (D), which uses kanbans, production flows, and activities to support just-in-time pull-based production. These three are the core production methodologies natively configured within the Production control module. Project manufacturing (C) is not a separate production type in Production control; project-related production is handled through the Project management and accounting module, which can reference production orders but is not itself a Production control process. Service management (E) is not part of Production control at all; it belongs to the Service management module used for service orders, agreements, and repairs.

Answer

Project manufacturing

Answer

Service management

Question 11

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 linked to production is the correct combination because it enforces quality specifications (viscosity, purity) as prerequisites for starting a batch and records actual test results against the production order. Quality orders in Dynamics 365 Supply Chain Management can be associated with production orders, and the system can block the start of production until the quality order is validated. This directly satisfies both the prevention and recording requirements.

Answer

Batch disposition codes and reservation hierarchy

Answer

Inventory blocking and quarantine management

Answer

Material consumption registration and production journals

Question 12

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?

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

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 13

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 in Dynamics 365 Supply Chain Management provides a real-time, cross-warehouse view of on-hand inventory and supports soft reservations via the Allocation API. Soft reservations allocate stock to sales orders without affecting physical inventory counts, exactly matching the requirement to view all three warehouses in one dashboard and reserve stock before physical pick.

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 14

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.. Setting vendor lead times in the Vendor master and purchase lead times in the Product master, then running Master Planning, lets Dynamics 365 Supply Chain Management automatically calculate purchase order delivery dates while accounting for calendar exceptions. Master Planning uses these lead times to generate planned purchase orders with accurate dates.

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 15

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'.. Lot tracking in Dynamics 365 Supply Chain Management is enabled at the item level via the tracking dimension group assigned in the Product master, which activates the Lot ID dimension for inventory transactions. Combining that with the Batch order process and setting automatic consumption to 'At start' or 'At completion' makes the system consume the lot-controlled raw materials automatically when the batch order is started or reported finished, satisfying both traceability and automatic consumption.

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.