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

Question 1

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. Option C is correct because Master planning includes demand forecasting functionality. Option A is wrong because Sales and marketing handles customer relationships, not forecasting. Option B is wrong because Procurement and sourcing focuses on purchasing. Option D is wrong because Production control is for executing production, not forecasting.

Answer

Procurement and sourcing

Answer

Production control

Answer

Sales and marketing

Question 2

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). Option D is correct because cross-docking transfers goods from inbound to outbound with minimal storage, but for replenishment based on demand, they should use demand-driven replenishment (e.g., min/max or reorder point). However, the best match is D: replenishment strategies like reorder point or min-max. Option A is wrong because transfer orders are manual. Option B is wrong because bill of materials is for product structure. Option C is wrong because Kanban is for pull signals in production, not warehouse replenishment.

Answer

Transfer orders

Answer

Bill of materials

Answer

Kanban signals

Question 3

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. Option B is correct because product traceability (serial/batch tracking) enables tracking through the supply chain. Option A is wrong because inventory dimensions like location track storage but not full lifecycle. Option C is wrong because bill of materials defines product structure but not tracking. Option D is wrong because production orders are one part of the process but do not provide end-to-end traceability without serial/batch.

Answer

Inventory dimensions (location, pallet)

Answer

Bill of materials

Answer

Production orders

Question 4

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. Option C is correct because the AI-powered inventory forecasting in Supply Chain Management uses machine learning to predict stockouts and suggest reorder quantities. Option A is wrong because Copilot for finance is for financial data. Option B is wrong because Copilot for sales is for sales processes. Option D is wrong because Copilot for customer service is for support.

Answer

Copilot in Dynamics 365 Customer Service

Answer

Copilot in Dynamics 365 Finance

Answer

Copilot in Dynamics 365 Sales

Question 5

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. Option A is correct because location directives can enforce directed put-away so that items are stored in locations that are optimized for picking (e.g., fast-moving items in easily accessible locations). Option B is wrong because creating more locations increases complexity. Option C is wrong because cycle counting is for inventory accuracy, not picking efficiency. Option D is wrong because replenishment is for moving items to picking locations, but the issue is random storage; directed put-away is more fundamental.

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 6

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

Accepted Answer

Transportation management. Options A and D are correct: Demand forecasting and Transportation management are core capabilities. Option B is incorrect because Customer relationship management is handled by Dynamics 365 Sales. Option C is incorrect because Human resources management is in Dynamics 365 Human Resources. Option E is incorrect because Project accounting is in Dynamics 365 Project Operations.

Answer

Customer relationship management

Answer

Project accounting

Answer

Human resources management

Question 7

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 Invoicing is part of Accounts receivable. Option E is incorrect because Budgeting is part of Finance.

Answer

Budgeting

Answer

Invoicing

Question 8

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

Accepted Answer

Batch orders for process manufacturing. Options A and D are correct: Discrete manufacturing (production orders) and Process manufacturing (batch orders) are both supported. Option B is incorrect because Lean manufacturing uses Kanban, not production orders. Option C is incorrect because Service orders are for service management. Option E is incorrect because Project orders are for project-based work.

Answer

Lean manufacturing orders

Answer

Project orders

Answer

Service orders

Question 9

A company configured the warehouse management parameters as shown in the exhibit. What is the purpose of this configuration?

Accepted Answer

To automatically replenish picking locations when the quantity falls below the minimum of 10 units. Option C is correct because the configuration defines a wave step for replenishment with min/max quantities, meaning automatic replenishment is triggered during wave processing. Option A is wrong because it's not about manual replenishment. Option B is wrong because location directives are used, but the wave step is specifically for replenishment. Option D is wrong because it's not about adjusting min/max during picking; it's about automatic replenishment.

Answer

To adjust the minimum and maximum replenishment quantities during picking

Answer

To disable location directives and use wave-based processing

Answer

To manually trigger replenishment when inventory drops below 10 units

Question 10

A company uses the master plan configuration shown in the exhibit. What is the effect of setting IncludeDemandForecast to true?

Accepted Answer

The master plan will consider both forecasted demand and existing sales orders. Option A is correct because including demand forecast means the plan will consider forecasted demand in addition to actual sales orders. Option B is wrong because it says only forecast, ignoring actual orders. Option C is wrong because capacity requirements are not directly related to demand forecast inclusion. Option D is wrong because manual adjustment is not required; the plan automatically considers forecast.

Answer

The master plan will calculate capacity requirements based on forecast

Answer

The master plan will only consider forecasted demand and ignore sales orders

Answer

The master plan will require manual input of forecast data

Question 11

A product is configured as shown in the exhibit. Which statement about the product is correct?

Accepted Answer

The product uses constraint-based configuration. Option D is correct because ConstraintBased variant configuration technology is used for complex products with many variants defined by constraints. Option A is wrong because product lifecycle state is 'Active', not 'In development'. Option B is wrong because the tracking dimension group includes BatchNumber, which implies batch tracking. Option C is wrong because StorageDimensionGroup 'SiteWarehouse' means only site and warehouse dimensions, not location.

Answer

The product is in development lifecycle state

Answer

The product is not tracked by batch number

Answer

The product can be stored in different locations within a warehouse

Question 12

A manufacturing company uses Dynamics 365 Supply Chain Management. The production manager reports that the system is not automatically reserving raw materials when a production order is released. What should you check first?

Accepted Answer

Confirm that the 'Automatic reservation' field is set to 'On' in the production order defaults.. Option C is correct because the 'Automatic reservation' parameter in the production order defaults controls whether materials are automatically reserved upon release. Option A is wrong because inventory status does not affect automatic reservation. Option B is wrong because batch attributes are unrelated to reservation timing. Option D is wrong because route operations do not control material reservation.

Answer

Check if the raw materials are batch-controlled and batch attributes are configured.

Answer

Verify that the raw materials have an inventory status of 'Available'.

Answer

Ensure that the production route includes all required operation steps.

Question 13

A distribution company uses Dynamics 365 Supply Chain Management. They want to use the Master Planning module to generate supply plans that consider both demand and supply across multiple warehouses. However, the plan is only generating for a single site. What is the most likely cause?

Accepted Answer

The master plan is configured with a site scope that excludes some warehouses.. Option B is correct because the master plan's scope must include all relevant sites and warehouses. Option A is wrong because coverage groups define replenishment rules but do not limit plan scope. Option C is wrong because the intercompany planning setting is for legal entity integration. Option D is wrong because planning optimization is a separate add-in that does not inherently limit scope.

Answer

Planning Optimization is not installed.

Answer

The coverage groups for the warehouses are set to 'Manual' instead of 'Automatic'.

Answer

Intercompany planning is not enabled.

Question 14

A warehouse supervisor uses the Dynamics 365 Warehouse Management mobile app to process a purchase order receipt. When scanning a license plate, the app displays 'License plate is not active'. What is the most likely cause?

Accepted Answer

The license plate's status is set to 'Inactive' in the system.. Option A is correct because an inactive license plate cannot be used for transactions. Option B is wrong because the item is not the issue. Option C is wrong because the license plate status is explicit. Option D is wrong because location status is separate.

Answer

The license plate is already fully received.

Answer

The receiving location is set to 'Inactive'.

Answer

The item on the purchase order is not license plate–controlled.

Question 15

A company uses Dynamics 365 Supply Chain Management with the Quality Management module. They want to automatically generate quality orders for incoming raw materials based on specific criteria like vendor and item. Which feature should they configure?

Accepted Answer

Quality associations.. Option C is correct because quality associations define rules that trigger quality order generation automatically. Option A is wrong because test groups define tests but not triggers. Option B is wrong because quarantine zones are for holding nonconforming items. Option D is wrong because nonconformance reports are for issues found.

Answer

Nonconformance reports.

Answer

Quarantine zones.

Answer

Test groups.