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

Question 1

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. Option B is correct because 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 Inventory management tracks quantities, not costs. Option D is wrong because Production control manages production orders but not cost breakdowns.

Answer

Product information management

Answer

Production control

Answer

Inventory management

Question 2

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. Option C is correct because Wave management can cluster orders and optimize picking routes based on location. Option A is wrong because Location directives define where to pick but not route optimization. Option B is wrong because Mobile device menu items define tasks but not wave grouping. Option D is wrong because Inventory status determines availability, not route optimization.

Answer

Inventory status

Answer

Location directives

Answer

Mobile device menu items

Question 3

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. Option D is correct because Vendor collaboration (or Vendor portal) allows suppliers to access purchase orders and confirm dates. Option A is wrong because Procurement and sourcing manages internal procurement processes. Option B is wrong because Inventory management is for internal stock. Option C is wrong because Accounts payable handles invoicing, not order confirmation.

Answer

Inventory management

Answer

Procurement and sourcing

Answer

Accounts payable

Question 4

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 5

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. Option B is correct because Reorder point functionality triggers purchase orders when stock falls below a set level. Option A is wrong because Safety stock is a minimum buffer but does not automatically create orders. Option C is wrong because Cycle counting is for inventory accuracy. Option D is wrong because Inventory aging is for valuation, not replenishment.

Answer

Cycle counting

Answer

Inventory aging

Answer

Safety stock

Question 6

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

Accepted Answer

Procurement and sourcing. Options A and D are correct. Expenses management is in Finance, not Supply Chain Management. Sales and marketing is in Commerce. Procurement and sourcing and Inventory management are core modules of Supply Chain Management. Customer service is in Customer Engagement.

Answer

Sales and marketing

Answer

Customer service

Answer

Expenses management

Question 7

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

Accepted Answer

Production order management. Options A, B, and C are correct. Production control includes bills of materials, production orders, and route management. Vendor collaboration is in Procurement, and Demand forecasting is in Master planning.

Answer

Vendor collaboration

Answer

Demand forecasting

Question 8

Which TWO are benefits of using warehouse management in Dynamics 365 Supply Chain Management?

Accepted Answer

Defining location directives for putaway. Options B and D are correct. Warehouse management enables wave management and location directives. Managing financial budgets is in Finance. Generating purchase orders is in Procurement. Tracking production orders is in Production control.

Answer

Managing financial budgets

Answer

Generating purchase orders automatically

Answer

Tracking production order status

Question 9

A batch job for master planning is configured as shown. The job runs daily at 2 AM. The planner notices that planned orders are not being firmed automatically. What is the likely reason?

Accepted Answer

The parameter FirmPlannedOrders is set to false.. Option D is correct because the parameter "FirmPlannedOrders": false prevents automatic firming. Option A is wrong because a daily recurrence is set. Option B is wrong because the status is Executing, not an error. Option C is wrong because IncludeSafetyStock is true, so safety stock is considered.

Answer

Safety stock is not included in the planning.

Answer

The recurrence is set to run daily, but the job should run hourly.

Answer

The job status shows an error.

Question 10

A warehouse configuration shows a location directive for putaway of purchase orders. When a purchase order is received, the system tries to put items into a location with the BULK profile. However, some large items are being placed in PICK locations. What could be the cause?

Accepted Answer

The location directive does not have weight or volume constraints.. Option B is correct because the location directive only specifies "BULK" but does not restrict based on weight or volume, and the PICK profile is smaller. Option A is wrong because the directive is for purchase orders. Option C is wrong because there is no directive for PICK. Option D is wrong because the profile IDs are defined.

Answer

The location profile for BULK is not correctly assigned to locations.

Answer

The location directive is for sales orders, not purchase orders.

Answer

A separate directive for PICK locations overrides the BULK directive.

Question 11

The exhibit shows the cost breakdown for finished good FG-200. The cost of RM-300 is 20.00 per unit, and RM-400 is 50.00 per unit. What is the total calculated cost of FG-200 based on this BOM?

Accepted Answer

90.00. The bill of materials (BOM) for FG-200 lists RM-300 (2 units at 20.00 each = 40.00) and RM-400 (1 unit at 50.00 = 50.00). The total calculated cost is 40.00 + 50.00 = 90.00, making option C correct. In Dynamics 365 Supply Chain Management, the BOM calculation rolls up costs from raw materials to the finished good based on the BOM structure and cost prices.

Answer

120.00

Answer

100.00

Answer

150.00

Question 12

A company implements Dynamics 365 Supply Chain Management. The warehouse manager reports that pickers often go to locations where inventory is reserved for outbound orders but not physically available. Which feature should be configured to prevent this issue?

Accepted Answer

Set up location directives to only allow picking from locations with sufficient on-hand inventory.. Location directives guide pickers to the correct locations. If inventory is reserved but not physically there, the location directive may need to be configured to consider on-hand inventory. Inventory status can block locations, but the core issue is the directive not respecting actual availability.

Answer

Configure inventory status to block locations with discrepancies.

Answer

Enable warehouse management parameters to allow negative inventory.

Answer

Use cycle counting to correct inventory discrepancies daily.

Question 13

A manufacturing company uses Dynamics 365 Supply Chain Management. They want to use AI to forecast demand for raw materials based on historical sales and external factors like weather. Which feature should they enable?

Accepted Answer

Enable Demand Forecasting with Azure Machine Learning integration.. Demand forecasting uses AI and machine learning to predict future demand. It can incorporate external factors through Azure Machine Learning. Material Resource Planning uses forecasts but is not AI-driven itself.

Answer

Use the Forecasting setup in Master planning to generate baseline forecasts.

Answer

Configure Material Requirements Planning (MRP) to run nightly.

Answer

Implement Inventory Forecasting with Power BI dashboards.

Question 14

A distribution company uses Dynamics 365 Supply Chain Management. They need to ensure that a specific item is only sold to customers in Europe due to regulatory restrictions. What should they configure?

Accepted Answer

Configure product compliance settings to restrict the item to Europe.. Product compliance in Commerce can restrict sales by geography. Trade agreements set commercial conditions, not restrictions. Item groups categorize items but do not restrict sales to regions.

Answer

Create a trade agreement journal for that item.

Answer

Assign the item to a restricted item group.

Answer

Set up a customer approval process in the sales order.

Question 15

A company uses Dynamics 365 Supply Chain Management with warehouse management. Workers are spending too much time traveling between picking locations. Which strategy should be implemented to reduce travel time?

Accepted Answer

Use cluster picking to pick multiple orders simultaneously.. Cluster picking groups multiple orders into one pick run, reducing travel. Zone picking assigns workers to zones, but if zones are large, travel may not reduce. Wave processing releases work but does not optimize travel.

Answer

Implement zone picking to assign workers to specific areas.

Answer

Increase the number of picking locations per item.

Answer

Configure wave processing to release orders less frequently.