MB-920 Describe Dynamics 365 Supply Chain Management Practice Test 26 — 15 Questions

Question 1

A bicycle manufacturer uses Dynamics 365 Supply Chain Management to plan production. The production planner needs to evaluate whether the master production schedule can be met given current on-hand inventory, open production orders, and planned purchases. Which planning tool should the planner use?

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

Accepted Answer

Master planning. Master planning evaluates demand against current supply and generates planned orders to cover shortages. It considers on-hand inventory, open production orders, and planned purchases to produce a feasible plan. Other modules handle physical warehouse execution, inventory restrictions, or purchasing transactions, but only master planning performs the net requirements calculation needed to assess whether the master production schedule can be fulfilled.

Answer

Warehouse management

Answer

Inventory blocking

Answer

Procurement and sourcing

Question 2

A pharmaceutical distributor uses Dynamics 365 Supply Chain Management. The company must ensure that all outbound shipments of temperature-sensitive products are packed with appropriate cooling materials and that the packaging process follows a validated procedure. Which module should the distributor configure to enforce these requirements?

Accepted Answer

Quality management. Quality management provides the tools to define quality associations, test procedures, and nonconformance handling, enabling the distributor to enforce validated packaging procedures and cooling material requirements. Warehouse management executes physical tasks but does not enforce validation. Inventory and transportation management address other aspects. Therefore, quality management is the correct module.

Answer

Inventory management

Answer

Warehouse management

Answer

Transportation management

Question 3

A company uses Dynamics 365 Supply Chain Management to manage procurement. They want to streamline the purchase requisition process by allowing employees to request items that are not yet in the system. Which TWO features should they configure to achieve this? (Choose two.)

Accepted Answer

Purchase requisition workflow. Procurement categories allow employees to request items that are not in the item master by selecting a category, while a purchase requisition workflow ensures these requests are properly approved. Together, they streamline the process for non-catalog items. Vendor collaboration, RFQs, and purchase order confirmation are all downstream or supplier-facing processes that do not enable the initial employee request.

Answer

Purchase order confirmation

Answer

Request for quotation (RFQ)

Answer

Vendor collaboration

Question 4

A global equipment manufacturer uses Dynamics 365 Supply Chain Management. They want to provide field service technicians with a mobile app that shows the exact on-hand quantity of spare parts at each service warehouse and allows technicians to reserve parts for upcoming work orders. Which combination should they implement?

Accepted Answer

Dynamics 365 Field Service integration with Supply Chain Management for inventory visibility and reservations. Field Service integration with Supply Chain Management is purpose-built to expose product inventory to technicians and to reserve or consume parts against work orders. Because the requirement centers on field technicians viewing spare-part stock in service warehouses and reserving parts, that integration is the correct choice.

Answer

Dynamics 365 Commerce integration with Supply Chain Management for omnichannel fulfillment

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Dynamics 365 Human Resources integration with Supply Chain Management for workforce scheduling

Answer

Dynamics 365 Sales integration with Supply Chain Management for quote-to-order processing

Question 5

A furniture maker uses Dynamics 365 Supply Chain Management. The production manager wants to track the actual costs of materials, labor, and overhead for a specific production order and compare them to estimated costs. Which feature should the manager use?

Accepted Answer

Production control. Production control in Dynamics 365 Supply Chain Management includes production order costing, which collects actual costs for materials, labor, and overhead and compares them to estimated costs. This enables variance analysis per production order. Other modules handle financial consolidation, inventory valuation, or purchasing, but none provide the detailed order-level cost tracking and comparison required here.

Answer

Procurement and sourcing

Answer

Cost accounting

Answer

Inventory management

Question 6

A distribution company uses Dynamics 365 Supply Chain Management to manage inventory across multiple warehouses. They want to track the cost of items using a method that calculates an average cost based on all purchases and adjusts it with each transaction. Which inventory costing method should they use?

Accepted Answer

Moving average. Moving average is the inventory costing method that recalculates an item's average cost with each transaction, based on total purchases and on-hand quantity. It provides a dynamic average cost that reflects current market conditions. Standard cost uses fixed costs, while FIFO and LIFO are based on specific layers of inventory and do not produce an average cost that adjusts automatically.

Answer

FIFO (First In, First Out)

Answer

Standard cost

Answer

LIFO (Last In, First Out)

Question 7

A company uses Dynamics 365 Supply Chain Management. They want to calculate the cost of producing a finished good by rolling up the costs of its components, including raw materials and subassemblies. Which costing method should they use?

Accepted Answer

BOM calculation. BOM calculation is the specific tool for rolling up component costs to determine the cost of a manufactured item. It aggregates material and resource costs based on the BOM and route. Other costing methods like standard costing, moving average, and FIFO are used for inventory valuation but do not perform a structured cost roll-up for production.

Answer

FIFO

Answer

Standard costing

Answer

Moving average

Question 8

A medical device manufacturer must ensure that only components meeting predefined quality specifications are consumed in production. They want the system to automatically block nonconforming items from being picked for production orders. Which Dynamics 365 Supply Chain Management feature should they configure?

Accepted Answer

Quality management with item sampling and quarantine orders. Quality management evaluates items against defined specifications and can automatically create quarantine orders for failed quantities, which blocks that inventory from reservation and picking. This delivers the automatic prevention of nonconforming component consumption that the medical device manufacturer requires.

Answer

Inventory blocking with manual release

Answer

Master planning with safety stock journals

Answer

Warehouse location directives with negative inventory checks

Question 9

A distribution company uses Dynamics 365 Supply Chain Management. They need to track inventory across multiple warehouses and ensure that items are stored in the most efficient locations based on turnover. Which feature should they use to define rules for where items are stored?

Accepted Answer

Location directives. Location directives are the mechanism in Dynamics 365 Supply Chain Management that determines where items are put away and picked from. They can be configured with strategies that consider item turnover, ensuring that fast-moving items are stored in easily accessible locations. This optimizes warehouse operations and reduces travel time for workers, directly meeting the company's requirement to store items efficiently based on turnover.

Answer

Item groups

Answer

Inventory profiles

Answer

Warehouse work policies

Question 10

A pharmaceutical company uses Dynamics 365 Supply Chain Management. They need to ensure that all vendors supplying active ingredients are evaluated and approved before any purchase order can be created. Which feature should they configure?

Accepted Answer

Vendor approval workflow. A vendor approval workflow ensures that vendors are evaluated and approved before they can be referenced on purchase orders. It can block purchase order creation for vendors that are not in an approved state. Vendor collaboration, purchase order workflows, and the vendor portal do not enforce vendor qualification; they handle post-approval collaboration or purchase order authorization.

Answer

Vendor collaboration

Answer

Purchase order workflow

Answer

Vendor portal

Question 11

A company uses Dynamics 365 Supply Chain Management to manage warehouse operations. They want to ensure that when a sales order is released to the warehouse, the system automatically generates work to pick and pack the items for shipment. Which configuration should they set up?

Accepted Answer

Wave template. A wave template automates the creation of waves and work when sales orders are released to the warehouse. It defines the steps for generating work, such as picking and packing, and can be configured to run automatically. Location directives, work templates, and inventory reservation are all part of the overall process but do not themselves trigger work creation from a sales order release.

Answer

Work template

Answer

Location directive

Answer

Inventory reservation

Question 12

A company uses Dynamics 365 Supply Chain Management to manage its procurement processes. They want to streamline the process of requesting and approving purchase requisitions. Which feature should they use to define the approval process for purchase requisitions?

Accepted Answer

Workflow. Workflow is the correct feature for defining approval processes for purchase requisitions. It allows you to create a workflow that routes the requisition to the appropriate approvers based on conditions such as amount or department. Purchase policies, approval limits, and vendor collaboration serve different purposes and do not define the approval process itself.

Answer

Vendor collaboration

Answer

Approval limits

Answer

Purchase policies

Question 13

A company uses Dynamics 365 Supply Chain Management. They want to track the cost of goods sold and inventory value using a method that calculates an average cost based on the actual costs of items received. They also want to allow negative inventory and backdating of transactions. Which inventory costing method should they use?

Accepted Answer

Weighted average. The scenario requires an inventory costing method that calculates an average cost based on actual costs and allows negative inventory and backdating. Weighted average meets these requirements by averaging costs across all units. FIFO and LIFO track layers and do not average, while standard cost uses predetermined costs. Therefore, weighted average is the correct choice.

Answer

FIFO

Answer

Standard cost

Answer

LIFO

Question 14

A company uses Dynamics 365 Supply Chain Management to manage inventory across multiple warehouses. They want to ensure that inventory is replenished automatically when stock falls below a minimum level. Which two features can be used to achieve this? (Choose two.)

Accepted Answer

Master planning. Min/max replenishment and master planning both automatically generate replenishment orders when inventory falls below a defined minimum. Min/max uses simple thresholds, while master planning uses net requirements and coverage settings. Safety stock journals, inventory blocking, and cycle counting do not automatically replenish inventory; they serve different purposes such as adjusting safety stock, restricting inventory, or verifying counts.

Answer

Cycle counting

Answer

Inventory blocking

Answer

Safety stock journal

Question 15

A manufacturing company uses Dynamics 365 Supply Chain Management to produce custom furniture. They want to track the actual costs of materials, labor, and overhead for each production order and compare them to estimated costs. Which feature should they use?

Accepted Answer

Production order costing. Production order costing is the feature that tracks actual costs for materials, labor, and overhead per production order and compares them to estimated costs. It provides detailed variance analysis at the order level. Cost accounting, standard cost variances, and project management are broader or different tools that do not offer the same granular production-order cost tracking.

Answer

Project management and accounting

Answer

Cost accounting

Answer

Standard cost variances