MB-920 Describe Dynamics 365 Supply Chain Management Practice Test 6 — 15 Questions

Question 1

A company uses Dynamics 365 Supply Chain Management and wants to automate the generation of purchase orders when inventory falls below a certain level. Which feature should they use?

Accepted Answer

Configure replenishment rules with minimum and maximum inventory levels.. Replenishment rules with minimum/maximum inventory levels can trigger purchase orders. Safety stock is a parameter, not an automation. Reorder point is a concept, but replenishment rules provide the automation.

Answer

Set up safety stock levels for the items.

Answer

Create a recurring purchase order manually.

Answer

Use item coverage with a reorder point.

Question 2

A company uses Dynamics 365 Supply Chain Management. They need to track the carbon footprint of their products throughout the supply chain. Which module should they use?

Accepted Answer

Sustainability Manager. Sustainability Manager is designed to track environmental impact including carbon emissions. The question is about Supply Chain Management, but within the Dynamics 365 ecosystem, Sustainability Manager is the correct tool for carbon tracking.

Answer

Product information management

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Asset management

Answer

Inventory management

Question 3

A company uses Dynamics 365 Supply Chain Management. They receive a shipment of raw materials, but the quantity received is less than the purchase order. They want to update inventory with the actual received quantity and create a backorder for the remaining. What should they do?

Accepted Answer

Register the received quantity in the receiving journal and mark the open order line as backorder.. Registering the received quantity as 'Register' updates inventory, and the remaining can be marked as backorder. 'Receive against order' completes the order. Partial receipt with backorder is a standard process.

Answer

Cancel the purchase order and create a new one for the received quantity.

Answer

Use the 'Receive against order' option to post the full quantity.

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Record the received quantity as an inventory adjustment.

Question 4

A company uses Dynamics 365 Supply Chain Management with advanced warehouse management. They notice that workers can confirm pick work even when the picked quantity is less than the expected quantity. They want to enforce that picking must be completed in full before confirmation. What should they configure?

Accepted Answer

Set the 'Confirm all lines' option to Yes on the mobile device menu item for picking.. The 'Confirm all lines' option on the mobile device menu item forces full picking. 'Pick line' allows partial picks. 'Work confirmation policy' can block, but the specific setting is on the menu item.

Answer

Enable the 'Short picking' policy in the work template.

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Set the 'Maximum pick quantity' to 100% on the location directive.

Answer

Configure the work confirmation policy to require full quantity.

Question 5

A company uses Dynamics 365 Supply Chain Management for production. They want to automatically create production orders when sales orders are entered for make-to-order items. Which planning method should they use?

Accepted Answer

Make-to-order (MTO) planning. Make-to-order (MTO) creates production orders automatically from sales orders. Master planning can also, but MTO is the specific method. Engineer-to-order (ETO) requires engineering changes. Discrete manufacturing is a type, not a planning method.

Answer

Discrete manufacturing with BOMs

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Engineer-to-order (ETO) planning

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Master planning with automatic firming

Question 6

Which TWO features in Dynamics 365 Supply Chain Management help ensure product quality during the receiving process?

Accepted Answer

Item sampling. Item sampling (Option A) is correct because it allows you to define a subset of received items to be inspected, reducing the inspection workload while still ensuring quality. Quality orders with inspection criteria (Option C) are correct because they enable you to create formal quality orders that specify test types, acceptable quality levels, and inspection results, ensuring that only conforming products are accepted into inventory.

Answer

Location directives

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Product compliance

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Inventory status management

Question 7

Which THREE capabilities are provided by the Dynamics 365 Supply Chain Management's Copilot AI features?

Accepted Answer

Generate summaries of engineering change orders. Copilot in Supply Chain Management can predict delivery dates, generate change summaries, and analyze inventory problems. It does not automate purchase order creation (that's a business process) nor create financial reports (that's Finance).

Answer

Create financial reports for cost accounting

Answer

Automatically create purchase orders when inventory is low

Question 8

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

Accepted Answer

Receiving and putaway. Receiving and putaway, and picking and shipment are core warehouse processes. Production consumption and production reporting are manufacturing processes. Transfer order creation is inventory management. Vendor returns involve purchasing.

Answer

Vendor returns

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Transfer order creation

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Production consumption and production reporting

Question 9

Refer to the exhibit. A purchase order is received with a freight charge. The company wants the freight cost to be allocated to inventory value for landed cost calculations. Which configuration is required?

Accepted Answer

Set up the charge code 'FREIGHT' as a landing cost and allocate it to the purchase order line.. Option A is correct because in Dynamics 365 Supply Chain Management, to allocate a freight charge to inventory value for landed cost calculations, you must set up a charge code (e.g., 'FREIGHT') with the 'Landing cost' option enabled. This charge code is then assigned to the purchase order line, which automatically distributes the freight cost proportionally across the items, increasing their inventory value as part of the landed cost.

Answer

Use the 'Charges' code with debit type 'Item' to post to inventory.

Answer

Add the freight charge as a fixed cost to the vendor's invoice.

Answer

Create a new item for freight and include it in the purchase order.

Question 10

Refer to the exhibit. A pick work template has a location profile of 'BULK'. However, workers are being directed to a location with profile 'FLOOR' instead. What is the most likely cause?

Accepted Answer

The location directive for picking does not restrict to location profile 'BULK'.. Location directives determine which locations to use based on query criteria. If the directive does not filter by location profile 'BULK', it may select 'FLOOR' locations. The work template only specifies the type of work, not the exact location. The location directive resolves the actual location.

Answer

The work class ID 'Picking' is not authorized for 'BULK' locations.

Answer

The work template priority is too low, causing a higher priority template to override.

Answer

The item 'ITEM002' has a default storage location with profile 'FLOOR'.

Question 11

Refer to the exhibit. A production order is in 'Estimated' status. The production scheduler needs to generate material requirements for the order. What should they do next?

Accepted Answer

Schedule the production order.. A production order in 'Estimated' status has not yet been scheduled. Scheduling the order (operations or job scheduling) will generate material requirements and update the status. Releasing the order would require scheduling first. Estimating is already done.

Answer

Post the picking list.

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Start the production order.

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Release the production order.

Question 12

A manufacturing company uses Dynamics 365 Supply Chain Management. The production manager notices that raw material inventory levels often drop below safety stock, causing production delays. Which feature should be configured to automatically generate purchase orders when inventory falls below the reorder point?

Accepted Answer

Replenishment strategies. Option B is correct because replenishment strategies in Dynamics 365 Supply Chain Management allow the system to automatically generate purchase orders when inventory levels fall below the defined reorder point. This ensures that raw material stock is replenished proactively, preventing production delays caused by stockouts.

Answer

Vendor collaboration

Answer

Warehouse management

Answer

Inventory blocking

Question 13

A company uses Dynamics 365 Supply Chain Management with lot-controlled items. The quality team needs to trace all finished goods that used a specific raw material lot due to a supplier defect. Which feature provides full traceability from raw material to finished product?

Accepted Answer

Inventory dimensions (tracking dimensions). Option C is correct because inventory dimensions, specifically tracking dimensions like lot numbers, enable upstream and downstream traceability. Option A is wrong because product variants handle configurations, not tracing. Option B is wrong because bill of materials shows components but not lot-level tracking. Option D is wrong because production orders show the production process but not full lot traceability across multiple levels.

Answer

Production orders

Answer

Product variants

Answer

Bill of materials

Question 14

A distribution company uses Dynamics 365 Supply Chain Management. They want to optimize warehouse picking routes to reduce travel time. Which module should they configure?

Accepted Answer

Warehouse management. Option B is correct because warehouse management includes wave processing and route optimization for picking. Option A is wrong because transportation management is for inbound/outbound freight. Option C is wrong because inventory management handles stock levels, not picking routes. Option D is wrong because procurement and sourcing is for purchasing.

Answer

Transportation management

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Inventory management

Answer

Procurement and sourcing

Question 15

A company uses Dynamics 365 Supply Chain Management with advanced warehouse management. They need to enforce strict FIFO (first in, first out) picking for perishable goods. Which configuration ensures that the oldest inventory is picked first?

Accepted Answer

Configure a reservation hierarchy with expiration date as the primary dimension. Option A is correct because reservation hierarchies allow you to set the picking order by expiration date or receipt date, enabling FIFO. Option B is wrong because location profiles define storage constraints, not picking order. Option C is wrong because mobile device menu items define user interactions. Option D is wrong because work templates define work creation but not priority by age.

Answer

Adjust the work template to order by location

Answer

Set up location profiles with strict picking order

Answer

Modify the mobile device menu item for picking