MB-920 Describe Dynamics 365 Supply Chain Management Practice Test 5 — 15 Questions

Question 1

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 2

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

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Production orders

Answer

Vendor collaboration

Question 3

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

Accepted Answer

Improved demand forecasting. 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

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Reduced need for manual data entry

Question 4

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

Accepted Answer

Receiving and putaway. 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 5

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. (Master planning) is correct because Master planning in Dynamics 365 Supply Chain Management performs material requirements planning (MRP) that can automatically generate planned purchase orders for missing components and reschedule production orders based on material availability. Option A (Warehouse management) is incorrect because it focuses on warehouse operations like receiving, putaway, and picking, not on planning. Option C (Product configuration) is incorrect as it is used for configurable products in a configure-to-order scenario. Option D (Inventory management) is incorrect because it handles inventory transactions, counting, and adjustments, not planning or automation of purchase orders.

Answer

Warehouse management

Answer

Product configuration

Answer

Inventory management

Question 6

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

Inventory management. (Inventory management) is correct because it includes replenishment features such as min/max and reorder point inventory planning that automatically generate purchase orders when stock levels fall below a threshold. Option B (Order promising) is incorrect because it calculates availability-to-promise (ATP) and capable-to-promise (CTP) dates but does not automatically create purchase orders. Option C (Production control) is incorrect as it manages manufacturing orders, not purchasing. Option D (Procurement and sourcing) is incorrect because although it handles purchase order processing, the automatic triggering is done by inventory management replenishment.

Answer

Order promising

Answer

Production control

Answer

Procurement and sourcing

Question 7

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. The Quality management module in Dynamics 365 Supply Chain Management is specifically designed to handle quality inspections, including the ability to automatically generate quality orders upon purchase order receipt. It can block inventory transactions (e.g., put-away or consumption) until the inspection passes, and trigger notifications to quality inspectors via workflows or alerts.

Answer

Production control

Answer

Warehouse management

Answer

Inventory management

Question 8

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. Demand forecasting with Azure Machine Learning can ingest external data such as weather patterns and economic indicators to improve demand predictions. Option A is incorrect because Sales and marketing forecasting typically relies on historical sales data, not external factors. Option B is incorrect because Master planning uses internal demand forecasts, not external data. Option D is incorrect because Supply planning focuses on procurement and inventory management, not forecasting with external data.

Answer

Sales and marketing forecasting

Answer

Master planning

Answer

Supply planning

Question 9

A company uses Dynamics 365 Supply Chain Management and needs to track the cost of raw materials as they move through production. The company uses standard cost methodology. Which module should be used to view the cost breakdown of a finished good?

Accepted Answer

Cost management. Cost management provides cost analysis, including BOM calculations and cost breakdowns. Option A is wrong because Product information management maintains product data but not cost details. Option C is wrong because Production control manages production orders, not cost breakdowns. Option D is wrong because Inventory management tracks quantities, not costs.

Answer

Product information management

Answer

Production control

Answer

Inventory management

Question 10

A warehouse manager wants to optimize picking routes by grouping orders that are located in the same aisle. Which feature in Dynamics 365 Supply Chain Management should be configured?

Accepted Answer

Wave management. Wave management in Dynamics 365 Supply Chain Management is the correct feature because it allows grouping of orders into waves based on criteria such as location or aisle, enabling optimized picking routes. By configuring wave templates and methods, the system can automatically consolidate orders from the same aisle into a single wave, reducing travel time and improving warehouse efficiency.

Answer

Inventory status

Answer

Location directives

Answer

Mobile device menu items

Question 11

A company using Dynamics 365 Supply Chain Management wants to implement vendor collaboration so that suppliers can view purchase orders and confirm delivery dates. Which feature should be set up?

Accepted Answer

Vendor collaboration. Vendor collaboration is the dedicated feature in Dynamics 365 Supply Chain Management that allows external suppliers to access a portal where they can view purchase orders, confirm delivery dates, and update order status. This feature is specifically designed to enable secure, real-time collaboration between buyers and vendors without requiring the supplier to have a full Dynamics 365 license.

Answer

Inventory management

Answer

Procurement and sourcing

Answer

Accounts payable

Question 12

A production manager needs to see the real-time status of all production orders on the shop floor. Which workspace in Dynamics 365 Supply Chain Management should be used?

Accepted Answer

Production floor management. The Production floor management workspace is specifically designed to provide production managers with a real-time, aggregated view of all production orders and their status on the shop floor. It includes key performance indicators, job statuses, and actionable insights for managing production operations directly from a single dashboard.

Answer

Master planning

Answer

Warehouse management

Answer

Inventory management

Question 13

A company uses Dynamics 365 Supply Chain Management and wants to automatically reorder stock when inventory falls below a defined level. Which functionality should be configured?

Accepted Answer

Reorder point. The Reorder point functionality triggers purchase orders automatically when inventory falls below a defined level. Option A is incorrect because Cycle counting is an inventory accuracy process, not for replenishment. Option B is incorrect because Inventory aging is for valuation analysis, not for automatic reordering. Option D is incorrect because Safety stock is a buffer quantity but does not automatically create orders; it is used in conjunction with reorder points or other replenishment methods.

Answer

Cycle counting

Answer

Inventory aging

Answer

Safety stock

Question 14

Which TWO modules are part of Dynamics 365 Supply Chain Management?

Accepted Answer

Procurement and sourcing. Procurement and sourcing (Option D) and Inventory management (Option E) are core modules within Dynamics 365 Supply Chain Management. Procurement and sourcing handles the end-to-end purchasing process, from vendor selection to purchase order management, while Inventory management provides real-time visibility and control over stock levels, warehouse operations, and inventory valuation. These modules directly support the supply chain lifecycle, distinguishing them from customer-facing or expense-focused modules.

Answer

Sales and marketing

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Customer service

Answer

Expenses management

Question 15

Which THREE capabilities are provided by the Production control module in Dynamics 365 Supply Chain Management?

Accepted Answer

Production order management. Production order management is a core capability of the Production control module, enabling the creation, scheduling, and tracking of production orders from release to completion. It manages the entire manufacturing lifecycle, including order status updates, material reservations, and capacity planning.

Answer

Vendor collaboration

Answer

Demand forecasting