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

Question 1

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. Option C is correct because wave processing can optimize picking routes by creating work for multiple orders in a single wave and using location directives to determine optimal paths. Option A is wrong because cluster picking groups orders but does not automatically optimize routes. Option B is wrong because cycle counting is for inventory accuracy. Option D is wrong because inbound load management handles receiving, not picking.

Answer

Inbound load management

Answer

Cycle counting

Answer

Cluster picking

Question 2

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.

Answer

Standard cost

Answer

FIFO

Answer

Weighted average

Question 3

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.

Answer

Resource

Answer

Production order

Answer

Bill of materials

Question 4

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.

Answer

Purchase requisition

Answer

Consignment inventory

Answer

Vendor collaboration

Question 5

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.

Answer

Location directives

Answer

Work templates

Answer

Mobile device menu items

Question 6

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. Option A is correct because credit management provides credit limit checks and automatic order holds. Option B is wrong because collection management is for past due invoices. Option C is wrong because accounts receivable parameters include credit management settings, but the feature itself is credit management. Option D is wrong because customer payment settlements are for applying payments.

Answer

Accounts receivable parameters

Answer

Collections management

Answer

Customer payment settlement

Question 7

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. Option D is correct because 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.

Answer

Use OData endpoints to expose carrier data

Answer

Use Power Automate to call a third-party API

Answer

Use data entities to import rates from a flat file

Question 8

A production supervisor needs to see which production orders are currently running and their status. Which workspace should they use?

Accepted Answer

Production floor management workspace. The Production floor management workspace is specifically designed for production supervisors to monitor and manage production orders in real time. It provides a consolidated view of all production orders, their current status (e.g., started, reported as finished), and key performance indicators, enabling immediate action on the shop floor.

Answer

Procurement and sourcing workspace

Answer

Cost management workspace

Answer

Warehouse management workspace

Question 9

Which TWO features are part of Dynamics 365 Supply Chain Management's inventory management capabilities?

Accepted Answer

Quality management. Quality management (C) is a core inventory management feature in Dynamics 365 Supply Chain Management that enables tracking and controlling product quality through inspections, nonconformance handling, and quality orders. Inventory valuation (E) is also a fundamental inventory management capability, providing methods like FIFO, LIFO, and weighted average to calculate and report inventory costs accurately.

Answer

Transportation management

Answer

Production orders

Answer

Vendor collaboration

Question 10

Which THREE are benefits of using Dynamics 365 Supply Chain Management's AI and Copilot features?

Accepted Answer

Improved demand forecasting. Option B is correct because Dynamics 365 Supply Chain Management's AI and Copilot features use machine learning models to analyze historical sales data, market trends, and external factors (e.g., weather, economic indicators) to generate more accurate demand forecasts. This reduces stockouts and overstock situations by predicting future demand with higher precision than traditional statistical methods.

Answer

Automated supplier negotiation

Answer

Reduced need for manual data entry

Question 11

Which TWO are valid warehouse management processes in Dynamics 365 Supply Chain Management?

Accepted Answer

Receiving and putaway. Option C is correct because receiving and putaway are core warehouse management processes in Dynamics 365 Supply Chain Management. The system uses mobile device menus and warehouse location directives to guide workers through receiving inventory and placing it into storage locations, leveraging license plate tracking and inventory status updates.

Answer

Purchase order creation

Answer

Production scheduling

Answer

Invoice matching

Question 12

A manufacturing company uses Dynamics 365 Supply Chain Management. The production planner notices that a planned production order for 1,000 units of finished good FG-100 has a material shortage for component RM-200. The planner wants to automatically create purchase orders for the missing component and reschedule the production order. Which feature should be configured?

Accepted Answer

Master planning. Option A is correct because Master planning in Dynamics 365 Supply Chain Management can generate planned purchase orders and reschedule production orders based on material availability. Option B is wrong because Product configuration is for configure-to-order products. Option C is wrong because Inventory management handles stock counting, not planning. Option D is wrong because Warehouse management deals with warehouse operations, not material planning.

Answer

Warehouse management

Answer

Product configuration

Answer

Inventory management

Question 13

A distributor wants to ensure that when a sales order is created, the system automatically checks if the requested item is available in the warehouse. If the item is out of stock, the system should create a purchase order for the item. Which feature in Dynamics 365 Supply Chain Management supports this?

Accepted Answer

Order promising. Option B is correct because the 'Supply chain' or 'Order promising' functionality can automatically create purchase orders when sales orders are placed and inventory is insufficient. Option A is wrong because Production control is for manufacturing, not purchasing. Option C is wrong because Procurement and sourcing is for direct purchasing but not automatic based on sales orders. Option D is wrong because Inventory management tracks stock but does not automatically create purchase orders.

Answer

Inventory management

Answer

Production control

Answer

Procurement and sourcing

Question 14

A company uses Dynamics 365 Supply Chain Management and wants to implement a quality check process for incoming raw materials. The quality inspector must receive a notification when a purchase order receipt is registered, and the system must block the inventory until the inspection is passed. Which module should be configured?

Accepted Answer

Quality management. Option C is correct because Quality management in Supply Chain Management handles quality inspections, notifications, and inventory blocking. Option A is wrong because Inventory management does not include quality workflows. Option B is wrong because Warehouse management focuses on location and movement, not quality. Option D is wrong because Production control is for in-process manufacturing quality.

Answer

Production control

Answer

Warehouse management

Answer

Inventory management

Question 15

A company uses Dynamics 365 Supply Chain Management and wants to improve demand forecasting by including external data such as weather patterns and economic indicators. Which feature should be used?

Accepted Answer

Demand forecasting with Azure Machine Learning. Option A is correct because Demand forecasting with Azure Machine Learning can ingest external data to improve forecasts. Option B is wrong because Master planning uses internal demand, not external data. Option C is wrong because Sales and marketing forecasts are based on historical sales. Option D is wrong because Supply planning focuses on procurement, not forecasting with external data.

Answer

Sales and marketing forecasting

Answer

Master planning

Answer

Supply planning