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

Question 1

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

Accepted Answer

Defining location directives for putaway. Location directives in Dynamics 365 Supply Chain Management (SCM) automatically guide the system to the optimal storage location for putaway, ensuring efficient warehouse space utilization and inventory accuracy. Option C is correct because wave management groups picking work into waves, allowing the system to optimize picking sequences and resource allocation, which reduces travel time and increases throughput.

Answer

Managing financial budgets

Answer

Generating purchase orders automatically

Answer

Tracking production order status

Question 2

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.. The batch job for master planning is configured to run daily at 2 AM, but planned orders are not being firmed automatically. The most likely reason is that the parameter `FirmPlannedOrders` is set to `false`. In Dynamics 365 Supply Chain Management, this parameter controls whether planned orders are automatically firmed during master planning execution. When set to `false`, the system will generate planned orders but will not automatically convert them to firm planned orders or production/purchase orders, requiring manual intervention.

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 3

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.. The location directive for putaway of purchase orders specifies the BULK profile, but without weight or volume constraints, the system does not prevent large items from being placed in PICK locations if they fit. The directive only guides the system to prefer BULK locations, but if no BULK location is available or the item doesn't meet constraints, it may fall back to other locations like PICK. Options B, C, and D are incorrect: Option B is wrong because the BULK profile assignment doesn't directly cause the issue; Option C is wrong because the directive is for purchase orders; Option D is wrong because there is no separate override directive for PICK locations.

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 4

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 5

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 6

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.. The scenario explicitly requires AI-driven demand forecasting that incorporates external factors like weather. Dynamics 365 Supply Chain Management's Demand Forecasting feature integrates with Azure Machine Learning to apply advanced algorithms that analyze historical sales data alongside external variables, producing more accurate predictions than traditional methods.

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 7

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.. Dynamics 365 Supply Chain Management uses product compliance settings to enforce regulatory restrictions on where an item can be sold. By configuring the 'Country of Origin' and 'Restricted for Sales' fields within the product compliance module, you can limit the item to specific geographic regions, such as Europe, ensuring that sales orders for non-European customers are blocked or flagged.

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 8

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 allows a worker to pick items for multiple orders in a single trip by grouping orders into a cluster and picking them together. This reduces the number of trips between picking locations, directly cutting travel time. In Dynamics 365 Supply Chain Management, cluster picking is a wave method that consolidates work for efficient route-based picking.

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.

Question 9

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

Use item coverage with a reorder point.. In Dynamics 365 Supply Chain Management, item coverage settings with a defined reorder point allow the system to automatically generate planned purchase orders when inventory falls below the reorder point during master planning. This is the standard method for automated procurement based on inventory levels. Replenishment rules, on the other hand, are used for warehouse location replenishment, not direct purchase order generation.

Answer

Set up safety stock levels for the items.

Answer

Configure replenishment rules with minimum and maximum inventory levels.

Answer

Create a recurring purchase order manually.

Question 10

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 the correct module because it is specifically designed to help organizations measure, track, and reduce their carbon footprint and other environmental impacts across operations and supply chains. It integrates with Dynamics 365 Supply Chain Management to capture emissions data from procurement, production, and logistics activities, enabling end-to-end carbon accounting.

Answer

Product information management

Answer

Asset management

Answer

Inventory management

Question 11

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.. Dynamics 365 Supply Chain Management allows partial receipt of a purchase order by registering the actual received quantity in a receiving journal. The remaining quantity can be marked as a backorder on the open order line, which automatically creates a backorder for the outstanding amount without canceling the original purchase order. This ensures inventory is updated accurately with the received quantity while the system tracks the backordered quantity for future fulfillment.

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.

Answer

Record the received quantity as an inventory adjustment.

Question 12

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.

Answer

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

Answer

Configure the work confirmation policy to require full quantity.

Question 13

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) planning is the correct method because it directly links sales orders to production orders, automatically generating production orders when a sales order is entered for a make-to-order item. This ensures that production is triggered only when demand exists, aligning with the company's requirement for make-to-order scenarios in Dynamics 365 Supply Chain Management.

Answer

Discrete manufacturing with BOMs

Answer

Engineer-to-order (ETO) planning

Answer

Master planning with automatic firming

Question 14

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

Answer

Product compliance

Answer

Inventory status management

Question 15

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

Accepted Answer

Generate summaries of engineering change orders. Dynamics 365 Supply Chain Management's Copilot AI includes a feature that uses natural language processing to generate summaries of engineering change orders. This capability helps engineers and stakeholders quickly understand the impact of changes without manually reviewing detailed technical documents, streamlining the change management process.

Answer

Create financial reports for cost accounting

Answer

Automatically create purchase orders when inventory is low