MB-920 Describe Dynamics 365 Supply Chain Management Practice Test 8 — 15 Questions

Question 1

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?

Choose an answer to begin — your selection is scored in the full session.

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 2

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.. The work template has a work order type of 'Sales orders' and a work line type of 'Pick', which creates picking work for sales orders. Option D correctly identifies this. Option A is wrong because the work order type is sales orders, not purchase orders. Option B is wrong because the line class is 'Sales', not 'Receiving'. Option C is wrong because the work priority is 10, which indicates lower priority (higher number), but the question asks what the template does, not the priority level.

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 3

You are configuring a reservation hierarchy for a warehouse in Dynamics 365 Supply Chain Management. Based on the exhibit, what is the primary criterion for picking inventory?

Accepted Answer

Location. (Location). The reservation hierarchy shows dimensions in order of priority: location (priority 1), lot number (priority 2), expiration date (priority 3). The primary criterion for picking inventory is the dimension with the highest priority (priority 1), which is location. Option A (Expiration date) is wrong because it is priority 3, not the primary. Option B (Lot number) is wrong because it is priority 2. Option D (FIFO) is the name of the reservation hierarchy method, not a picking dimension.

Answer

Expiration date

Answer

Lot number

Answer

FIFO

Question 4

A manufacturing company uses Dynamics 365 Supply Chain Management. They notice that the production schedule is not reflecting real-time capacity constraints, causing delays. Which feature should they configure to dynamically adjust schedules based on current resource availability?

Accepted Answer

Finite scheduling. Finite scheduling considers capacity constraints and dynamically adjusts production schedules based on current resource availability. Option B (Shop floor execution) is incorrect because it tracks and manages actual production activities, not schedule adjustments. Option C (Gantt chart views) is incorrect because Gantt charts are visualization tools that display schedules but do not automatically adjust them based on capacity. Option D (Material requirements planning, MRP) is incorrect because MRP focuses on material planning and procurement, not on capacity-based scheduling.

Answer

Shop floor execution

Answer

Gantt chart views

Answer

Material requirements planning (MRP)

Question 5

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 are used in Dynamics 365 Supply Chain Management to define rules for item placement, including criteria such as item value, to ensure high-value items are stored in secure locations. Inventory status codes track item availability, not placement. Warehouse zones group locations but do not enforce placement rules based on item value. Product filters are used for item selection, not storage restrictions.

Answer

Inventory status codes

Answer

Product filters

Answer

Warehouse zones

Question 6

A distribution company is implementing Dynamics 365 Supply Chain Management and wants to optimize transportation costs. They have contracts with multiple carriers offering different rates based on weight, distance, and delivery speed. Which module should they use to automatically select the most cost-effective carrier for each shipment?

Accepted Answer

Transportation management. Transportation management (TMS) includes rate engines and routing guides to select carriers based on defined criteria such as weight, distance, and delivery speed, thereby optimizing transportation costs. Option A (Inventory management) is wrong because it focuses on stock levels and inventory control, not carrier selection. Option B (Warehouse management) is wrong because it handles inbound and outbound warehouse operations, not transportation planning. Option D (Procurement and sourcing) is wrong because it deals with purchasing and vendor selection, not shipping logistics.

Answer

Inventory management

Answer

Warehouse management

Answer

Procurement and sourcing

Question 7

A manufacturer uses Dynamics 365 Supply Chain Management and wants to implement a quality control process where incoming raw materials are inspected before being accepted into inventory. Which feature should they use to enforce that inspection?

Accepted Answer

Quality orders. Quality orders in Dynamics 365 Supply Chain Management are the correct feature because they allow you to define inspection requirements for incoming raw materials, automatically blocking receipt or putaway until the inspection is completed and the order is approved. This enforces a mandatory quality check before inventory is accepted, directly meeting the requirement.

Answer

Quarantine zones

Answer

Inventory journals

Answer

Nonconformance management

Question 8

A company uses Dynamics 365 Supply Chain Management to manage its supply chain. They need to forecast demand for the next quarter to plan procurement and production. Which module should they use for demand forecasting?

Accepted Answer

Master planning. Master planning in Dynamics 365 Supply Chain Management is the module specifically designed for demand forecasting. It uses historical data and statistical methods to generate forecasts that drive procurement and production planning. The other modules handle execution or sales tracking, not the forecasting engine.

Answer

Procurement and sourcing

Answer

Production control

Answer

Sales and marketing

Question 9

A company uses Dynamics 365 Supply Chain Management and wants to automate the replenishment of items from a central warehouse to regional distribution centers based on real-time sales data. Which concept should they use?

Accepted Answer

Replenishment strategies (e.g., min/max). Replenishment strategies such as min/max are designed to automate inventory replenishment based on predefined thresholds and real-time demand signals. In Dynamics 365 Supply Chain Management, these strategies calculate when stock at a regional distribution center falls below a minimum level and automatically generate replenishment orders from the central warehouse, making them the correct choice for this scenario.

Answer

Transfer orders

Answer

Bill of materials

Answer

Kanban signals

Question 10

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 enables end-to-end traceability from raw material to finished good, capturing all transformations and movements. Option A is wrong because inventory dimensions like location or pallet track storage locations but not the full lifecycle. Option B is wrong because a bill of materials defines the product structure (components) but does not track movement or transformations. Option D is wrong because production orders manage manufacturing steps but lack the granular tracking of individual items or batches through the entire supply chain.

Answer

Inventory dimensions (location, pallet)

Answer

Bill of materials

Answer

Production orders

Question 11

A company uses Dynamics 365 Supply Chain Management and wants to use AI to optimize inventory levels by predicting stockouts and suggesting reorder quantities. Which Copilot feature should they use?

Accepted Answer

Copilot in Dynamics 365 Supply Chain Management. Copilot in Dynamics 365 Supply Chain Management includes AI-powered inventory forecasting that uses machine learning to predict stockouts and suggest reorder quantities. Option A is wrong because Copilot in Dynamics 365 Customer Service is designed for customer support scenarios, not inventory management. Option B is wrong because Copilot in Dynamics 365 Finance focuses on financial data and processes. Option C is wrong because Copilot in Dynamics 365 Sales is for sales-related activities.

Answer

Copilot in Dynamics 365 Customer Service

Answer

Copilot in Dynamics 365 Finance

Answer

Copilot in Dynamics 365 Sales

Question 12

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 13

Which TWO of the following are capabilities of Dynamics 365 Supply Chain Management?

Accepted Answer

Transportation management. Options B and C are correct: Transportation management and Demand forecasting are core capabilities of Dynamics 365 Supply Chain Management. Option A is incorrect because Customer relationship management is handled by Dynamics 365 Sales. Option D is incorrect because Project accounting is a feature of Dynamics 365 Project Operations. Option E is incorrect because Human resources management belongs to Dynamics 365 Human Resources.

Answer

Customer relationship management

Answer

Project accounting

Answer

Human resources management

Question 14

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

Accepted Answer

Shipping. Options A, C, and D are correct: Receiving, Picking, and Shipping are core warehouse processes. Option B is incorrect because Budgeting is a financial process, not a warehouse management process. Option E is incorrect because Invoicing is part of Accounts receivable, which is also a financial process.

Answer

Budgeting

Answer

Invoicing

Question 15

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

Accepted Answer

Batch orders for process manufacturing. Batch orders for process manufacturing are a type of production order in Dynamics 365 Supply Chain Management, specifically designed for process industries where products are created in batches (e.g., chemicals, food, pharmaceuticals). They support co-products, by-products, and formula-based production, distinct from discrete manufacturing.

Answer

Lean manufacturing orders

Answer

Project orders

Answer

Service orders