MB-920 Describe Dynamics 365 Supply Chain Management Practice Test 27 — 15 Questions

Question 1

A global bicycle manufacturer uses Dynamics 365 Supply Chain Management. The production planning team must decide whether to produce a high-volume, low-variety model in a continuous flow or in discrete batches. They need a production control method that supports repetitive, streamlined processes with a fixed sequence of operations and rate-based scheduling. Which production type should they use?

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

Accepted Answer

Production line. Production line is the correct production control type because it is purpose-built for repetitive, high-volume, low-variety manufacturing with a fixed sequence and rate-based scheduling. The bicycle manufacturer needs this streamlined approach, not the more flexible discrete or formula-based methods.

Answer

Lean manufacturing

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Discrete manufacturing

Answer

Process manufacturing

Question 2

A company uses Dynamics 365 Supply Chain Management to manage its warehouse operations. They want to ensure that when a sales order is picked, the system automatically generates a packing slip and updates inventory. Which document should be generated to record the shipment and reduce inventory?

Accepted Answer

Packing slip. The packing slip is the document that records the shipment of items to a customer and triggers the reduction of inventory. When a packing slip is posted, the system updates the inventory on-hand quantities and creates the shipment record. The sales invoice is generated later for billing, while purchase orders and production orders are for procurement and manufacturing, respectively.

Answer

Purchase order

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Sales invoice

Answer

Production order

Question 3

A retail company uses Dynamics 365 Supply Chain Management. They want to streamline the process of receiving goods from vendors by allowing warehouse workers to use a mobile device to scan barcodes and confirm quantities. Which module should they implement?

Accepted Answer

Warehouse management. Warehouse management provides the mobile app and barcode scanning capabilities needed for receiving, put-away, picking, and shipping. It allows workers to confirm quantities on mobile devices, improving accuracy and efficiency. Inventory management, procurement, and transportation management handle other aspects of the supply chain but do not offer the mobile receiving workflow described.

Answer

Procurement and sourcing

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Transportation management

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Inventory management

Question 4

A manufacturing company uses Dynamics 365 Supply Chain Management. They need to track the cost of raw materials as they move through production and report the total cost of goods sold for each production order. Which module or feature should they use?

Accepted Answer

Cost management. Cost management in Dynamics 365 Supply Chain Management provides the tools to track and report the cost of goods sold for production orders, including raw material consumption. It integrates with inventory and production to calculate actual costs. The other modules handle operational or analytical aspects but do not directly produce the per-order cost totals required.

Answer

Cost accounting

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Production control

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Inventory management

Question 5

A specialty food producer uses Dynamics 365 Supply Chain Management. They need to track the shelf life of ingredients and finished goods, and they want the system to automatically assign the earliest expiration date to outgoing inventory to minimize waste. Which inventory management feature should they implement?

Accepted Answer

First expired, first out (FEFO). FEFO is the correct feature because it automatically prioritizes inventory with the earliest expiration date for picking and reservation. This directly addresses the need to minimize waste by ensuring perishable items are shipped before they expire, unlike FIFO or LIFO which rely on receipt dates.

Answer

Last in, first out (LIFO)

Answer

Batch disposition codes

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First in, first out (FIFO)

Question 6

A bicycle manufacturer in Portland uses Dynamics 365 Supply Chain Management to plan production. They need to produce 500 custom bikes for a single customer order and track each bike's unique frame number and paint color through every production step. Which production type should they use?

Accepted Answer

Discrete manufacturing. Discrete manufacturing is the correct production type because it supports production orders for distinct, countable items and allows unit-level serial and batch tracking through operations. The scenario requires building 500 custom bicycles and recording each frame number and paint color, which aligns with discrete order functionality rather than formula-based, kanban-based, or project-based approaches.

Answer

Project manufacturing

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Lean manufacturing

Answer

Process manufacturing

Question 7

A bicycle manufacturer uses Dynamics 365 Supply Chain Management to plan production. The production planner needs to create a production order for 50 units of a finished good and then release it so that warehouse workers can begin picking components. Which sequence of actions should the planner perform?

Accepted Answer

Create a planned production order, firm it to a production order, and then release the production order.. Master planning produces planned production orders, which must be firmed before they become actual production orders. Once firmed, the production order can be released to the shop floor, enabling component picking and job scheduling. Creating and confirming a purchase order, sales order, or BOM does not initiate production execution, so the firm-then-release sequence is the correct path.

Answer

Create a purchase order, confirm it, and then post a product receipt.

Answer

Create a sales order, confirm it, and then generate a picking list.

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Create a bill of materials (BOM), approve it, and then activate it.

Question 8

A medical device distributor uses Dynamics 365 Supply Chain Management. They need to reserve specific inventory for a high-priority sales order and ensure that warehouse workers cannot pick those reserved units for other orders. Which inventory reservation approach should they use?

Accepted Answer

Manual reservation on the sales order line. Manual reservation is the appropriate approach because it allows the planner to select specific on-hand inventory and link it to the high-priority sales order line. Reserved quantities are then unavailable to other orders for picking, which prevents workers from taking those units for different demand. Automatic reservation does not offer the same deliberate unit selection, and blocking or ATP does not reserve stock to the order.

Answer

Inventory blocking with a blocking reason

Answer

ATP (available-to-promise) calculation

Answer

Automatic reservation during sales order entry

Question 9

A company uses Dynamics 365 Supply Chain Management to manage procurement. They want to streamline the process of requesting and purchasing goods by allowing employees to create purchase requisitions that go through an approval workflow. Which feature should they use?

Accepted Answer

Purchase requisitions. Purchase requisitions in Dynamics 365 Supply Chain Management provide a structured way for employees to request goods or services, with the ability to enforce approval workflows before converting to purchase orders. This streamlines procurement while maintaining control. Other features like purchase orders, RFQs, and vendor collaboration serve different purposes in the procurement lifecycle.

Answer

Vendor collaboration

Answer

Request for quotation

Answer

Purchase orders

Question 10

A manufacturing company uses Dynamics 365 Supply Chain Management. They need to track the cost of producing a finished good, including raw materials, labor, and overhead. Which module provides this capability?

Accepted Answer

Cost accounting. Cost accounting is the module that enables tracking and analyzing production costs, including materials, labor, and overhead. It provides the necessary tools to calculate the cost of a finished good and perform variance analysis, making it the correct choice for this requirement.

Answer

Procurement and sourcing

Answer

Production control

Answer

Inventory management

Question 11

A retail company uses Dynamics 365 Supply Chain Management. They want to streamline the process of capturing vendor details, purchase orders, and product receipts in a single, integrated workflow. Which module should they use?

Accepted Answer

Procurement and sourcing. Procurement and sourcing is the correct module because it encompasses vendor management, purchase order processing, and product receipt, forming the core of the procure-to-pay cycle. The other modules either handle downstream financial activities or planning, not the integrated purchasing workflow.

Answer

Master planning

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Accounts payable

Answer

Inventory management

Question 12

A company uses Dynamics 365 Supply Chain Management. They want to manage the lifecycle of a product from introduction to discontinuation, including tracking product attributes and categories. Which feature should they use?

Accepted Answer

Product information management. Product information management is the correct feature for managing the lifecycle of products, including defining attributes, categories, and variants. It provides a centralized way to create and maintain product data, ensuring consistency across the organization. This meets the company's need to track products from introduction to discontinuation.

Answer

Procurement and sourcing

Answer

Inventory management

Answer

Master planning

Question 13

A furniture manufacturer uses Dynamics 365 Supply Chain Management. Production planners must be able to see, on a single screen, the current on-hand inventory of a component across the main warehouse and two overflow sites, along with any quantities already reserved for open production orders. Which workspace should the planners use?

Accepted Answer

The Inventory on-hand inquiry page, which displays physical, reserved, and available quantities by item and warehouse.. Planners need a consolidated view of physical stock, reservations, and availability across several storage locations, which is precisely what the Inventory on-hand inquiry page provides through its physical, reserved, and available columns by item and warehouse. Setup pages and planning workspaces describe configuration or future supply, not current reserved inventory.

Answer

The Master planning workspace, using the Planned orders and Released orders tabs.

Answer

The Product information management workspace with the Released products list page.

Answer

The Inventory management workspace with the On-hand inventory list page filtered by item number.

Question 14

A company uses Dynamics 365 Supply Chain Management to manage discrete manufacturing. Production planners report that the system does not automatically create planned production orders for items with a coverage group set to 'Manual'. They want the system to generate planned orders automatically for these items. What should you do?

Accepted Answer

Change the coverage code on the item's coverage group to 'Period' or 'Requirement'.. Master planning generates planned orders based on the coverage code assigned to an item. When the coverage code is Manual, the system does not create planned orders automatically; planners must create them manually. Changing the coverage code to Period or Requirement allows the planning engine to generate planned orders according to net requirements. The default order type and planning regeneration mode do not override the Manual coverage setting.

Answer

Set the item's default order type to 'Production' and enable the 'Auto-create' flag on the item.

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Run master planning with the 'Regeneration' option instead of 'Net change'.

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Enable the 'Automatic firming' parameter in the master plan and set the firming time fence to zero.

Question 15

A company uses Dynamics 365 Supply Chain Management. They need to track the quantity of a specific item in each warehouse and receive alerts when the quantity falls below a minimum level. Which feature should they use?

Accepted Answer

Inventory alerts. Inventory alerts are designed to monitor inventory quantities and trigger notifications based on user-defined conditions, such as falling below a minimum level. They can be set up for specific items and warehouses, and can notify designated users. Other features like journals, blocking, or safety stock do not provide the alerting functionality required.

Answer

Inventory journals

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Safety stock

Answer

Inventory blocking