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

Question 1

A retail company uses Dynamics 365 Supply Chain Management to manage inventory across multiple warehouses. They want to ensure that when a sales order is created for a product, the system automatically reserves inventory from the nearest warehouse. Which feature should be used?

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

Accepted Answer

Available-to-promise (ATP). Available-to-promise (ATP) is the correct feature because it calculates the quantity of a product that can be promised to a customer based on current inventory, planned production, and expected receipts, and it can be configured to consider warehouse proximity. In Dynamics 365 Supply Chain Management, ATP uses delivery date control and order promising to automatically reserve inventory from the nearest warehouse when a sales order is created. This ensures accurate order promising and efficient fulfillment.

Answer

Sales and marketing

Answer

Warehouse management

Answer

Procurement and sourcing

Question 2

A manufacturing company uses Dynamics 365 Supply Chain Management for process manufacturing. They produce a liquid chemical that requires a specific mixing time. Which feature should be used to enforce that the production step takes at least 30 minutes before the next step can begin?

Accepted Answer

Route operation with a 'Process time' set to 30 minutes. In Dynamics 365 Supply Chain Management, a route operation defines the sequence of production steps and includes a 'Process time' field that specifies the minimum time required for that operation. Setting the process time to 30 minutes enforces that the operation takes at least that long before the next step can begin, which is exactly what the mixing step requires.

Answer

Product configuration model

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Production orders with a bill of materials (BOM)

Answer

Quality order with a test time

Question 3

A company uses Dynamics 365 Supply Chain Management for discrete manufacturing. They need to reduce waste by ensuring that raw materials are only issued to production orders when the production order is released to the floor. Which TWO actions should they take?

Accepted Answer

Set the production order status to 'Released' before issuing materials. Option B is correct because in Dynamics 365 Supply Chain Management, raw material consumption cannot be posted against a production order until its status is 'Released'; setting the status to 'Released' is the prerequisite that authorizes material issue and floor execution. Option D is correct because the 'Release to warehouse' process generates the picking work (warehouse work) that drives controlled, demand-based issuance of raw materials from inventory to production, which is exactly how you prevent premature or excess material consumption. Option A is incorrect because 'Estimated' is a pre-release planning status that only allows cost estimation and does not permit material issue. Option C is incorrect because a quality order manages inspection and testing of items; it does not gate material issuance to production orders. Option E is incorrect because 'Ended' is a final closing status that stops further transactions, the opposite of what is needed to issue materials.

Answer

Set the production order status to 'Estimated'

Answer

Create a quality order for raw materials

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Mark the production order as 'Ended'

Question 4

A company uses Dynamics 365 Supply Chain Management with warehouse management. They want to improve picking accuracy by requiring workers to scan each item's barcode and the location barcode during picking. Which TWO configurations are necessary?

Accepted Answer

Set the 'License plate required' option on the location directive. Option D is correct because setting the 'Scan by' field on the mobile device menu item to 'Item' forces the worker to scan the item barcode during picking, which is exactly the item-level scan the company wants for accuracy. Option C is correct because enabling 'License plate required' on the location directive makes the system prompt for a location (or license plate) scan, ensuring the worker confirms the pick location via barcode. Together these two settings deliver both the item scan and the location scan required by the scenario. Option A is incorrect because a work template line per item controls work generation, not barcode scanning behavior. Option B is incorrect because a product filter only limits which items are included in work; it does not enforce scanning. Option E is incorrect because 'Scan by' is a single field on the menu item, and setting it to 'Location' would not also enforce the item scan; the correct value for the item scan is 'Item' as in option D.

Answer

Create a work template with a line for each item

Answer

Configure a product filter to restrict items

Answer

Enable 'Scan by' on the mobile device menu item to 'Location'

Question 5

A company uses Dynamics 365 Supply Chain Management and wants to use Copilot to assist with supply chain planning. Which THREE capabilities are provided by Copilot in Supply Chain Management?

Accepted Answer

Explain master planning results in natural language. Copilot in Dynamics 365 Supply Chain Management is designed to augment planning and procurement decisions with natural-language insights and AI-driven recommendations rather than to execute transactions autonomously. Option A is correct because Copilot can explain master planning results in natural language, helping planners understand why specific planned orders, delays, or coverage changes were generated by the planning engine. Option C is correct because Copilot surfaces predictive insights about potential supplier delays, using historical and contextual data to warn planners of at-risk inbound supply. Option E is correct because Copilot can suggest alternative suppliers based on historical performance, giving planners ranked recommendations when a primary source is unreliable. Options B and D are not correct: Copilot does not automatically generate purchase orders or automatically adjust inventory levels using AI; those are transactional actions that remain under planner control or are handled by other planning and replenishment features, not by Copilot itself.

Answer

Generate purchase orders automatically

Answer

Automatically adjust inventory levels using AI

Question 6

A company uses Dynamics 365 Supply Chain Management for process manufacturing. They need to enforce that a specific formula version is used for a product based on its shelf life. Which TWO configurations are required?

Accepted Answer

Set up shelf life (best before date) tracking for the product. Option A is correct because shelf life (best before date) tracking must be enabled for the product so that the system can evaluate the product's shelf life and use it as the basis for selecting the appropriate formula version in process manufacturing. Option E is correct because the formula version's 'From date' and 'To date' fields define its validity period, which the system uses together with the shelf life requirement to determine and enforce which specific formula version applies. Options B, C, and D are incorrect: a BOM version is used for discrete manufacturing rather than process manufacturing formulas, catch weight relates to weight-based inventory handling and not formula version selection, and a location directive governs warehouse put-away/picking logic rather than formula version determination.

Answer

Create a BOM version instead of a formula version

Answer

Enable catch weight on the product

Answer

Configure a location directive for the warehouse

Question 7

You are the supply chain manager for a global pharmaceutical company that manufactures and distributes temperature-sensitive vaccines. The company uses Dynamics 365 Supply Chain Management with warehouse management and production control. The vaccines must be stored at 2-8°C throughout the supply chain. You need to design a process that ensures: (1) inbound vaccine shipments are inspected and temperature-logged before acceptance, (2) vaccines are immediately moved to a cold storage location upon receipt, (3) picking for outbound orders always prioritizes vaccines with the nearest expiration date (FEFO), and (4) any temperature excursion during storage automatically triggers a quarantine and quality order. Which set of configurations should you implement?

Accepted Answer

Configure a quality association for inbound inspections, location directives for cold storage, set reservation hierarchy to FEFO, and use temperature monitoring with threshold alerts linked to quality orders.. Quality associations automate inbound inspection upon receipt; location directives with temperature zone settings ensure immediate putaway to cold storage; reservation hierarchy enforces FEFO for outbound picking; and temperature monitoring with threshold alerts automatically triggers quality orders for quarantine. Option B is incorrect because periodic manual temperature checks do not provide automatic quarantine triggers, and quality orders alone lack automated association for inbound inspection. Option C uses FIFO instead of FEFO and relies on manual quality orders, missing automation. Option D uses FIFO and does not include temperature monitoring for automatic quarantine triggers.

Answer

Set up inbound inspection via a quality order, use a work template for put-away, enable FEFO reservation, and rely on periodic manual temperature checks.

Answer

Set up a mobile device menu for receipt, use a wave template for put-away, enable FIFO reservation, and use quality orders manually.

Answer

Use a quality order for inbound, create a location directive for cold storage, set reservation hierarchy to FIFO, and enable batch attributes.

Question 8

You are a solutions architect for a furniture manufacturer that uses Dynamics 365 Supply Chain Management. The company produces custom furniture and uses make-to-order production. They have the following requirements: (1) When a sales order is created, the system must automatically create a production order for the configured product. (2) The production order must use a BOM and route that are specific to the order configuration. (3) The production order must be scheduled based on material availability and capacity. (4) The company wants to use Copilot to assist in creating the production schedule. Which set of configurations should you implement?

Accepted Answer

Create a production order from the sales order, use product configuration models to generate BOM and route, schedule operations using finite capacity, and enable Copilot for scheduling.. Creating a production order from the sales order, using product configuration models to generate BOM and route, scheduling operations using finite capacity, and enabling Copilot for scheduling meets all requirements: automatic production order creation, order-specific BOM and route, scheduling based on material availability and capacity, and Copilot assistance.

Answer

Create a blanket sales order and use a kanban rule to trigger production.

Answer

Create a sales order and directly pick inventory; no production order needed.

Answer

Create a purchase order for the configured product and use a transfer order.

Question 9

Which TWO inventory costing methods are available in Dynamics 365 Supply Chain Management?

Accepted Answer

FIFO. FIFO (First In, First Out) and Standard cost are both valid inventory costing methods in Dynamics 365 Supply Chain Management. FIFO assumes that the first items received are the first ones sold. Standard cost uses predetermined costs for items. Weighted average is also a valid method, but the question limits to two choices.

Answer

LIFO

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Fixed cost

Answer

Weighted average

Question 10

A retail company uses Dynamics 365 Supply Chain Management to manage its distribution network. They have a central warehouse in Chicago and five regional distribution centers (RDCs) across the United States. The company wants to ensure that when a sales order is created for a customer in a specific region, the system automatically suggests fulfillment from the nearest RDC to minimize shipping costs and delivery time. Currently, sales order processing requires manual selection of the warehouse. Which feature should you configure to automate this process?

Accepted Answer

Warehouse assignment. Warehouse assignment in Dynamics 365 Supply Chain Management automates the selection of the best warehouse (e.g., nearest RDC) for a sales order line based on configured rules such as location, inventory availability, and priority. Configuring warehouse assignment rules allows the system to suggest or automatically assign the optimal warehouse during order entry, eliminating manual selection. This directly addresses the requirement to fulfill from the nearest RDC.

Answer

Transportation management

Answer

Inventory allocation

Answer

Demand forecasting

Question 11

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

Accepted Answer

Procurement and sourcing. The correct answers are A, B, and E. Procurement and sourcing, Master planning, and Sales and marketing are core modules of Dynamics 365 Supply Chain Management. Option C (Project management and accounting) is part of Dynamics 365 Project Operations, not Supply Chain Management. Option D (Human resources) is part of Dynamics 365 Human Resources.

Answer

Project management and accounting

Answer

Human resources

Question 12

You are a system administrator for a food and beverage company using Dynamics 365 Supply Chain Management. The company produces perishable goods with expiration dates. They currently track inventory by batch, but they need to enforce a first-expiry-first-out (FEFO) picking strategy in their warehouse. When a sales order is picked, the system should automatically suggest the batch with the earliest expiration date. Additionally, if a batch has expired, the system should prevent it from being picked and should quarantine it. What configuration steps should you perform to meet these requirements?

Accepted Answer

Use batch disposition codes and set the reservation hierarchy to batch-above-location.. To enforce FEFO picking and prevent expired batches from being picked, you need to configure batch disposition codes to block and quarantine expired batches, and set the reservation hierarchy to batch-above-location so that the system reserves the earliest expiring batch first. This combination ensures that the picking process automatically suggests the batch with the earliest expiration date and blocks expired ones.

Answer

Set up product flavors to categorize batches by expiration date.

Answer

Create quality orders to inspect batches before picking.

Answer

Use batch disposition codes and set the reservation hierarchy to location-above-batch.

Question 13

Which TWO capabilities are provided by the Warehouse management module in Dynamics 365 Supply Chain Management?

Accepted Answer

Wave processing. Wave processing (B) is a core Warehouse management capability in Dynamics 365 Supply Chain Management, allowing you to group outbound work into waves and release it to the warehouse for picking, replenishment, and load building. Cluster picking (C) is also a native Warehouse management feature that lets a worker pick items for multiple orders simultaneously into a single cluster, improving picking efficiency. Route planning (A) belongs to Transportation management, not Warehouse management. Quality orders (D) are part of Quality management. Production scheduling (E) is handled by Master planning and Production control, not the Warehouse management module.

Answer

Route planning

Answer

Quality orders

Answer

Production scheduling

Question 14

A distribution company uses Dynamics 365 Supply Chain Management to manage inventory across multiple warehouses. They want to ensure that when inventory levels for a critical item fall below the reorder point, a purchase requisition is automatically generated. Currently, the buyer must monitor stock levels manually and create purchase orders. The company has set up item coverage groups and reorder points in the system. What is the next step to automate the generation of purchase requisitions?

Accepted Answer

Run master planning to generate planned orders.. To automate the generation of purchase requisitions when inventory falls below the reorder point, the next step is to run master planning. Master planning evaluates item coverage settings, including reorder points, and generates planned orders such as purchase requisitions. These planned orders can then be firmed into actual purchase orders or requisitions.

Answer

Define reorder point for the item.

Answer

Set up vendor accounts for the items.

Answer

Configure purchase order approval workflow.

Question 15

A global manufacturer uses Dynamics 365 Supply Chain Management. They produce high-value machinery and need to track the exact materials used in each finished good for service and warranty purposes. The company uses discrete manufacturing with production orders. Currently, the system estimates material consumption based on the bill of materials (BOM), but actual consumption may vary due to scrap or rework. The company wants to capture actual material consumption in real time on the shop floor using handheld scanners. You need to configure the system to allow shop floor workers to report material consumption against a production order. You have the following options: A. Use the Production floor execution interface and enable the 'Report as finished' and 'Report as consumed' options on the production order. B. Use the Warehouse Management mobile app to perform a raw material picking and consumption process via a mobile device menu item. C. Use the BOM version to force exact consumption and ignore variances. D. Use the Inventory adjustments journal to manually reduce raw material inventory after production. Which option should you choose?

Accepted Answer

Use the Warehouse Management mobile app to perform a raw material picking and consumption process via a mobile device menu item.. The Warehouse Management mobile app is the correct tool because it is purpose-built for shop-floor and warehouse execution, allowing workers with handheld scanners to perform raw material picking and consumption against a production order in real time. Mobile device menu items can be configured to execute the 'Raw material picking' work creation and consumption process, which posts actual consumption to the production order as inventory transactions. This captures true material usage including scrap and rework variances, which is exactly what the manufacturer needs for service and warranty traceability.

Answer

Use the Production floor execution interface and enable the 'Report as finished' and 'Report as consumed' options on the production order.

Answer

Use the Inventory adjustments journal to manually reduce raw material inventory after production.

Answer

Use the BOM version to force exact consumption and ignore variances.