MB-920 Describe Dynamics 365 Supply Chain Management Practice Test 4 — 15 Questions

Question 1

A retail company uses Dynamics 365 Supply Chain Management to manage inventory across multiple stores. They want to ensure that stock levels at stores are automatically replenished from the central warehouse when inventory drops below a defined threshold. Which planning method should they configure?

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

Accepted Answer

Replenishment (min/max). Replenishment (min/max) is the correct planning method because it automatically triggers replenishment orders from the central warehouse when inventory at a store falls below a defined minimum threshold, and it stops when stock reaches the maximum level. This method is specifically designed for location-based inventory replenishment in Dynamics 365 Supply Chain Management, ensuring that stores maintain optimal stock without manual intervention.

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Inventory aging

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Demand forecasting

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Safety stock

Question 2

A company uses Dynamics 365 Supply Chain Management. Which TWO features are used to manage the quality of incoming materials?

Accepted Answer

Item sampling. Item sampling is correct because it defines the quantity of items to be inspected from a shipment or production batch, enabling statistical quality control without testing every unit. Quality orders are correct because they are the primary mechanism in Dynamics 365 Supply Chain Management to document and execute inspection tasks, capturing test results against predefined quality specifications.

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Nonconformance management

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Quarantine zones

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Batch attributes

Question 3

A manufacturing company uses Dynamics 365 Supply Chain Management. Which THREE components are required to set up a production process for a discrete manufacturing scenario?

Accepted Answer

Bill of materials. In a discrete manufacturing scenario, the bill of materials (BOM) is required because it defines the list of components and raw materials needed to produce a finished product. The production order is the core document that authorizes and tracks the manufacturing execution, while the route specifies the sequence of operations and work centers. Together, these three elements form the foundation for planning and executing production in Dynamics 365 Supply Chain Management.

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Kanban rules

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Costing sheet

Question 4

A distribution company uses Dynamics 365 Supply Chain Management. Which TWO methods can be used to reduce the time taken to receive inbound shipments?

Accepted Answer

Use advanced shipping notice (ASN). Advanced shipping notices (ASNs) allow the warehouse to receive shipment details before the physical arrival, enabling pre-receiving processing, staging, and labor planning. This reduces the time spent on data entry and verification during actual receipt, as the system can automatically match the ASN to the purchase order and initiate put-away workflows.

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Use cross-docking

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Use put-away clusters

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Require quality orders for all receipts

Question 5

Refer to the exhibit. A warehouse manager runs the on-hand inventory report for item P-1000 in warehouse WH01. The report shows zero on-hand quantity but the inventory status is 'Available'. The manager knows that there should be 500 units in stock based on a recent purchase order receipt. What is the most likely cause of this discrepancy?

Accepted Answer

The purchase order receipt has not been registered in the warehouse. The most likely cause is that the purchase order receipt has not been registered in the warehouse (Option A). In Dynamics 365 Supply Chain Management, inventory status is set to 'Available' by default when an item is created or received, but the on-hand quantity only updates after the receipt is physically registered against the warehouse. Since the manager sees zero on-hand quantity despite knowing 500 units were received, the receipt transaction likely exists in the system but hasn't been posted to the warehouse inventory, leaving the quantity unrecorded.

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The item is stored in a different location

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The item is reserved for a sales order

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The item is on a quality order

Question 6

Refer to the exhibit. A production scheduler reviews a scheduled production order. Operation 10 on CNC-MACHINE is scheduled from 8:00 to 11:00, and Operation 20 on ASSEMBLY-LINE starts at 11:30. The scheduler notices that operation 20 starts 30 minutes after operation 10 ends. What is the most likely reason for this gap?

Accepted Answer

Setup time for operation 20 is included in the schedule as a separate activity. In Dynamics 365 Supply Chain Management, setup time can be modeled as a separate activity in the route or production order. The 30-minute gap between Operation 10 (CNC-MACHINE) ending at 11:00 and Operation 20 (ASSEMBLY-LINE) starting at 11:30 is most likely the scheduled setup time for Operation 20, which is explicitly represented as a distinct operation or activity in the scheduling engine. This allows the system to allocate time for machine or line preparation without conflating it with run time.

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Buffer time is configured between operations

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The system automatically adds a break for the operator

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Transportation time between resources is configured

Question 7

Refer to the exhibit. A sales representative tries to confirm a sales order for 50 units of item L-5000, but the system does not allow confirmation because the available quantity is only 40. The reservation method is set to Manual. What should the sales representative do to proceed with the order?

Accepted Answer

Manually reserve 40 units and backorder the remaining 10. The reservation method is set to Manual, meaning the system does not automatically allocate inventory. The sales representative must manually reserve the available 40 units and backorder the remaining 10 units to proceed with the order, which aligns with the manual reservation process in Dynamics 365 Supply Chain Management.

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Create a purchase order for 10 units

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Change the reservation method to Automatic

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Reduce the order quantity to 40 units

Question 8

A furniture manufacturer uses Dynamics 365 Supply Chain Management. They need to ensure that raw materials are replenished automatically when inventory falls below a certain level. Which feature should be configured?

Accepted Answer

Reorder point. The reorder point feature in Dynamics 365 Supply Chain Management triggers automatic replenishment when inventory levels drop to a predefined threshold. This ensures raw materials are reordered without manual intervention, directly addressing the requirement for automatic replenishment when inventory falls below a certain level.

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Vendor collaboration

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Safety stock

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Master planning

Question 9

A company uses Dynamics 365 Supply Chain Management for warehouse management. They notice that picking routes are inefficient, causing delays. They want to optimize picking paths automatically. Which feature should they implement?

Accepted Answer

Wave processing. Wave processing in Dynamics 365 Supply Chain Management automatically groups released orders into waves and optimizes picking routes based on location sequencing and work templates. This reduces travel time and improves warehouse efficiency by generating efficient pick paths without manual intervention.

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Inbound load management

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Cycle counting

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Cluster picking

Question 10

A retail company wants to track the cost of goods sold using a method that assumes the most recently purchased items are sold first. Which costing method should they configure?

Accepted Answer

LIFO. D is correct because LIFO (Last In, First Out) assumes the most recently purchased items are sold first, which matches the company's requirement to track cost of goods sold using that assumption. In Dynamics 365 Supply Chain Management, LIFO is an inventory costing method that can be configured in the item model group to calculate the cost of goods sold based on the cost of the latest received inventory.

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Standard cost

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FIFO

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Weighted average

Question 11

A manufacturer needs to define the sequence of operations and work centers for producing a finished good. Which supply chain entity should they configure?

Accepted Answer

Route. In Dynamics 365 Supply Chain Management, a Route defines the sequence of operations and the specific work centers (or resources) required to produce a finished good. It links each operation step to a resource or resource group, establishing the production flow and timing. Configuring a Route is the correct entity for specifying the order of operations and work centers, as it directly models the manufacturing process.

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Resource

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Production order

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Bill of materials

Question 12

A company uses Dynamics 365 Supply Chain Management and wants to automate the creation of purchase orders based on demand from sales orders. Which feature should they use?

Accepted Answer

Master planning. Master planning in Dynamics 365 Supply Chain Management uses demand from sales orders to generate planned purchase orders, ensuring inventory levels meet requirements. It performs net requirements calculations, considering existing stock, lead times, and order quantities, to automate procurement suggestions. This directly addresses the need to create purchase orders based on sales order demand.

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Purchase requisition

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Consignment inventory

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Vendor collaboration

Question 13

A warehouse manager wants to assign workers to specific zones and track their performance. Which warehouse management feature should be used?

Accepted Answer

Labor management. Labor management in Dynamics 365 Supply Chain Management is specifically designed to assign workers to zones and track their performance, including metrics like productivity and efficiency. This feature enables warehouse managers to define labor standards, monitor worker activities, and generate performance reports, directly addressing the scenario's requirements.

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Location directives

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Work templates

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Mobile device menu items

Question 14

A company needs to ensure that when a sales order is created, the system automatically checks if the customer's credit limit is sufficient. If not, the order should be placed on hold. Which setup is required?

Accepted Answer

Credit management. Credit management in Dynamics 365 Supply Chain Management is the dedicated module that enforces credit limits during sales order processing. When a sales order is created, the system evaluates the customer's credit limit against the order total; if the limit is exceeded, the order is automatically placed on hold. This behavior is controlled by credit limit rules and blocking configurations within the Credit management module.

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Accounts receivable parameters

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Collections management

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Customer payment settlement

Question 15

A company uses Dynamics 365 Supply Chain Management and wants to integrate with an external transportation management system (TMS) to get real-time shipping rates. Which integration approach should they use?

Accepted Answer

Configure the transportation management module to use rate shopping. The transportation management module in Dynamics 365 Supply Chain Management includes built-in rate shopping functionality that can integrate with external TMS providers to retrieve real-time shipping rates. This feature uses rate route workbenches and rate engines to compare rates from multiple carriers dynamically, making it the native and intended approach for real-time rate integration.

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Use OData endpoints to expose carrier data

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Use Power Automate to call a third-party API

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Use data entities to import rates from a flat file