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

Question 1

Which TWO planning methods are available in Dynamics 365 Supply Chain Management's master planning?

Accepted Answer

Material requirements planning (MRP). In Dynamics 365 Supply Chain Management, master planning supports two distinct planning methodologies: Material requirements planning (MRP) (option D) and Distribution requirements planning (DRP) (option E). MRP is the classic planning method that calculates net requirements for materials and components based on demand, on-hand inventory, and supply, generating planned purchase, transfer, and production orders to cover those requirements. DRP is the complementary method that plans replenishment across warehouses and distribution networks, moving supply between locations to satisfy demand at each site rather than only planning at a single facility. Together, these two methods are the planning approaches selectable in the master planning setup, which is why D and E are the correct answers. Capacity requirements planning (A) is a capacity-loading technique rather than a master planning method, Enterprise resource planning (B) is the overall business system category, and Production planning (C) is a broader functional area, so none of these are the two master planning methods offered.

Answer

Capacity requirements planning (CRP)

Answer

Enterprise resource planning (ERP)

Answer

Production planning

Question 2

You are configuring master planning for item A0001 in Dynamics 365 Supply Chain Management. The exhibit shows a coverage group configuration. Based on the exhibit, what is the expected behavior when the on-hand quantity drops to 400 units?

Accepted Answer

A planned order is generated to replenish up to 2000 units.. With the MinMax reordering policy, when the on-hand quantity drops below the minimum (500), the system generates a planned order to replenish up to the maximum (2000). Option A is incorrect because the trigger is the minimum quantity, not safety stock. Option B is incorrect because the coverage period (30 days) does not delay the planned order generation; it only affects planning horizon. Option D is incorrect because the replenishment quantity brings inventory to the maximum, not just safety stock.

Answer

No action is taken because safety stock is 100 and on-hand is above that.

Answer

The system waits for the next period (30 days) before generating a planned order.

Answer

A planned order is generated to replenish only 100 units to meet safety stock.

Question 3

You are reviewing a work template configuration in Dynamics 365 Supply Chain Management. Based on the exhibit, what will this work template do?

Accepted Answer

Create picking work for sales orders.. Based on the exhibit (not shown), the work template is configured to create picking work for sales orders. Work templates in Dynamics 365 Supply Chain Management define the type of work to be generated, such as picking, put-away, or receiving. The correct answer indicates that this template is set up for sales order picking, which is a common outbound process.

Answer

Create receiving work for purchase order lines.

Answer

Create put-away work for purchase order receipts.

Answer

Assign high priority to sales order picking work.

Question 4

A company uses Dynamics 365 Supply Chain Management to manage inventory across multiple warehouses. They want to ensure that high-value items are stored in the most secure locations. What feature should they use to define storage restrictions based on item value?

Accepted Answer

Location directives. Location directives in Dynamics 365 Supply Chain Management define rules for where items should be picked or put away based on various criteria, including item value. They can be configured to direct high-value items to secure locations, ensuring proper storage and handling.

Answer

Inventory status codes

Answer

Product filters

Answer

Warehouse zones

Question 5

A company uses Dynamics 365 Supply Chain Management and wants to track the entire lifecycle of a product from raw material to finished good, including all transformations and movements. Which feature should they enable?

Accepted Answer

Serial number and batch tracking. Serial number and batch tracking in Dynamics 365 Supply Chain Management enables end-to-end traceability of items through receipt, production, transfer, and sale, capturing every transformation and movement. This is the feature designed to track a product's full lifecycle from raw material to finished good.

Answer

Inventory dimensions (location, pallet)

Answer

Bill of materials

Answer

Production orders

Question 6

A company uses Dynamics 365 Supply Chain Management and experiences delays in order fulfillment because pickers cannot find items in the warehouse. The warehouse uses a random storage strategy. What is the best way to improve picking efficiency without rearranging the entire warehouse?

Accepted Answer

Configure location directives to enforce directed put-away based on item movement frequency. B is correct because location directives in Dynamics 365 Supply Chain Management can be configured to enforce directed put-away based on item movement frequency, which automatically places fast-moving items in more accessible locations. This improves picking efficiency without requiring a physical warehouse rearrangement, addressing the random storage strategy's lack of organization.

Answer

Implement replenishment to move items to primary picking locations

Answer

Perform cycle counting more frequently

Answer

Create additional warehouse locations to spread out items

Question 7

Which TWO of the following are types of production orders in Dynamics 365 Supply Chain Management?

Accepted Answer

Batch orders for process manufacturing. In Dynamics 365 Supply Chain Management, production orders are categorized by the type of manufacturing process they support, and two of the recognized types are batch orders for process manufacturing (B) and discrete production orders (D). Batch orders (B) are correct because they are used for process manufacturing, where formulas and co-products/by-products are managed, and they are created from formula versions rather than BOMs. Discrete production orders (D) are correct because they represent the classic production order type used for discrete manufacturing, driven by bills of materials (BOMs) and routes, and they support estimated, scheduled, released, started, and reported-as-finished lifecycle states. Lean manufacturing orders (A) are not a production order type in this context; lean manufacturing uses kanbans and production flows rather than production orders. Project orders (C) are not a production order type; project-related production is handled through project categories and item requirements linked to a project, not a distinct production order type. Service orders (E) are not production orders at all; they belong to service management and field service scenarios for managing service activities and resources.

Answer

Lean manufacturing orders

Answer

Project orders

Answer

Service orders

Question 8

A product is configured as shown in the exhibit. Which statement about the product is correct?

Accepted Answer

The product uses constraint-based configuration. ConstraintBased variant configuration technology is used for complex products with many variants defined by constraints. Option A is wrong because product lifecycle state is 'Active', not 'In development'. Option B is wrong because the tracking dimension group includes BatchNumber, which implies batch tracking. Option C is wrong because StorageDimensionGroup 'SiteWarehouse' means only site and warehouse dimensions, not location.

Answer

The product is in development lifecycle state

Answer

The product is not tracked by batch number

Answer

The product can be stored in different locations within a warehouse

Question 9

A distribution company uses Dynamics 365 Supply Chain Management. They want to use the Master Planning module to generate supply plans that consider both demand and supply across multiple warehouses. However, the plan is only generating for a single site. What is the most likely cause?

Accepted Answer

The master plan is configured with a site scope that excludes some warehouses.. The most likely cause is that the master plan is configured with a site scope that excludes some warehouses. In Dynamics 365 Supply Chain Management, master plans can be scoped to specific sites or warehouses, and if the scope is limited to a single site, the plan will only generate for that site. Other options are less likely because Planning Optimization is required for master planning but would cause broader failures, coverage groups set to Manual would affect coverage but not site scope, and intercompany planning is unrelated to multi-site planning within a single legal entity.

Answer

Planning Optimization is not installed.

Answer

The coverage groups for the warehouses are set to 'Manual' instead of 'Automatic'.

Answer

Intercompany planning is not enabled.

Question 10

A company uses Dynamics 365 Supply Chain Management with the Asset Management module. They need to create a maintenance plan that generates work orders based on meter readings (e.g., after every 100 operating hours). Which schedule type should they use?

Accepted Answer

Meter. In Dynamics 365 Supply Chain Management Asset Management, a meter-based maintenance plan generates work orders based on meter readings, such as operating hours or production counts. The Meter schedule type is specifically designed for this: you define a meter, associate it with an asset, and the plan triggers when the meter value crosses a threshold (e.g., every 100 hours). This directly matches the requirement to generate work orders after every 100 operating hours.

Answer

Counter

Answer

Interval

Answer

Time

Question 11

A company uses Dynamics 365 Supply Chain Management. They want to use the vendor collaboration feature to share purchase order information with suppliers. What is a prerequisite?

Accepted Answer

The vendor must be set up as a user with the 'Vendor' role in Microsoft Entra ID.. Vendor collaboration in Dynamics 365 Supply Chain Management requires the vendor contact to be provisioned as a user in Microsoft Entra ID and assigned the 'Vendor' role so they can sign in to the vendor collaboration interface and access purchase orders, RFQs, and related documents. Without this user and role assignment, the vendor cannot authenticate or see the shared PO information. The other options are configuration elements that may be useful but are not the prerequisite for enabling vendor collaboration access.

Answer

The vendor must have a procurement category assigned.

Answer

The vendor must be added to the procurement catalog.

Answer

A purchase agreement must be active for the vendor.

Question 12

You are reviewing a Power BI report that shows quality order counts by status. The report shows 0 for 'Open' status even though there are open quality orders. What is the most likely reason?

Accepted Answer

The query filters to only orders created in the last 30 days.. The Power BI report likely uses a filter that limits data to the last 30 days. Open quality orders may have been created earlier, so they are excluded from the report, resulting in a count of 0. Option A is wrong because open orders do exist, so the count is not actually zero. Option C is wrong because the 'CreationDate' field exists and is used for filtering. Option D is wrong because the 'Status' field is used in the report to categorize counts, but the filter on creation date is the cause.

Answer

The count of open orders is actually zero.

Answer

The 'CreationDate' field does not exist in the QualityOrders table.

Answer

The 'Status' field is not used in the summarize.

Question 13

A company wants to track products throughout the supply chain using unique identifiers. Which configuration should they enable?

Accepted Answer

Batch Attributes. Batch Attributes allow companies to define unique identifiers (such as lot numbers or batch numbers) and assign them to products, enabling end-to-end traceability through the supply chain. When configured, each batch can be tracked from receipt through production and delivery, providing the visibility needed for recalls and compliance.

Answer

Product Variants

Answer

Global Inventory Tracking

Answer

Catch Weight

Question 14

A company uses Dynamics 365 Supply Chain Management. They need to calculate a costed bill of materials (BOM) that includes manufacturing overhead. Which costing method should they use?

Accepted Answer

BOM Calculation with Costing Sheet. D is correct because the BOM Calculation with Costing Sheet is specifically designed to calculate a costed bill of materials that includes manufacturing overhead. In Dynamics 365 Supply Chain Management, the costing sheet allows you to define overhead rates, such as machine or labor overhead, and automatically apply them during BOM calculation, ensuring the total cost reflects both material and overhead components.

Answer

Moving Average

Answer

Standard Cost

Answer

FIFO

Question 15

A company uses Dynamics 365 Supply Chain Management. They need to support a make-to-order scenario where each order has unique engineering specifications. Which configuration should they use?

Accepted Answer

Engineering Change Management. Engineering Change Management in Dynamics 365 Supply Chain Management is designed for make-to-order scenarios where each order has unique engineering specifications. It provides version control, change tracking, and approval workflows for engineering products, allowing you to manage BOM and route versions tied to specific sales orders. This is the purpose-built configuration for custom-engineered, order-specific manufacturing.

Answer

Product Configuration

Answer

Sales Orders

Answer

Batch Orders