MB-330 Implement Inventory and Asset Management Practice Test 3 — 15 Questions

Question 1

You are configuring inventory dimensions for a new item in Dynamics 365 Supply Chain Management. The item will be stored in multiple warehouses and must be tracked by location within each warehouse. The company also needs to track the item by batch number for quality control. Which inventory dimension group setup should you use?

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

Accepted Answer

Create a storage dimension group with Site, Warehouse, Location, and Batch number active, and a tracking dimension group with Batch number active.. The correct setup uses a storage dimension group with Site, Warehouse, and Location active to support multi-warehouse and bin-level tracking, and a tracking dimension group with Batch number active for quality control. Other options either miss Location or incorrectly place Batch number in storage dimensions.

Answer

Create a storage dimension group with Site and Warehouse active, and a tracking dimension group with Batch number active.

Answer

Create a storage dimension group with Warehouse, Location, and Batch number active, and a tracking dimension group with Batch number active.

Answer

Create a storage dimension group with Site, Warehouse, and Location active, and a tracking dimension group with Batch number and Serial number active.

Question 2

A company uses Dynamics 365 Supply Chain Management with Asset Management. They need to ensure that maintenance work orders can consume inventory items, such as spare parts, directly from the warehouse. The system must automatically create inventory transactions when items are consumed on a work order. Which two configurations are required to enable this? (Choose two.)

Accepted Answer

Set up a project category for the work order type that links to an inventory item.. To enable inventory consumption on Asset Management work orders, you must set up a project category that links to the inventory item and configure the item to be used on projects via a project category group. These steps allow the system to create inventory transactions when items are consumed. The other options are either non-existent or unrelated to the required integration.

Answer

Enable the 'Inventory consumption' parameter in Asset Management parameters.

Answer

Set up a warehouse work policy for inventory consumption on work orders.

Answer

Create a production BOM for the work order that includes the spare parts.

Question 3

You are a functional consultant at a manufacturing company using Dynamics 365 Supply Chain Management. The warehouse team reports that when they create a transfer order to move items from the main warehouse to a production warehouse, the system automatically reserves inventory for the transfer order. However, they want to prevent reservation for these internal movements to allow other orders to use the inventory until the transfer is actually picked. What should you configure to disable automatic reservation for transfer orders?

Accepted Answer

On the Inventory and warehouse management parameters page, set the 'Reservation' field to 'Manual' for transfer orders.. Automatic reservation for transfer orders is controlled at the module level, not on the item or order line. The Inventory and warehouse management parameters page contains a dedicated setting for transfer order reservation. Setting it to Manual prevents the system from automatically reserving inventory when a transfer order is created, allowing inventory to remain available for other purposes until the transfer is picked. This is the correct configuration to meet the business requirement.

Answer

Modify the item's default order settings to set the 'Reservation' field to 'Manual' for transfer orders.

Answer

Set the 'Reservation' field to 'Manual' on the Inventory and warehouse management parameters page.

Answer

Configure the 'Reservation' setting to 'Manual' on the Transfer order line in the Transfer order form.

Question 4

A company uses Dynamics 365 Supply Chain Management. They need to configure inventory so that items are automatically reserved when a sales order is created. The reservation should occur without manual intervention and should apply to all sales orders for a specific item. Which setting should you configure?

Accepted Answer

Set the item's reservation parameter to 'Automatic' in the item model group.. Automatic reservation is configured on the item model group by setting the reservation parameter to 'Automatic'. This ensures that inventory is reserved when sales order lines are created for items in that group. Other options either refer to non-existent settings or do not directly enable automatic reservation.

Answer

Enable the 'Auto-reserve' option in the Accounts receivable parameters.

Answer

Configure the sales order processing policy to reserve inventory on order creation.

Answer

Set up a reservation hierarchy for the item that includes automatic reservation.

Question 5

A warehouse supervisor is setting up inventory counting for a large distribution center with warehouse management processes enabled. The supervisor needs to perform cycle counting on specific locations without stopping operations. Which TWO configurations are required to allow mobile device cycle counting by location? (Choose two.)

Accepted Answer

Set up counting work creation by configuring the cycle count work template and location directives.. Mobile device cycle counting by location requires a Cycle count mobile device menu item so workers can perform counts, and counting work must be generated through a cycle count work template and location directives. A cycle count plan is useful for scheduling but not mandatory for ad hoc location counting, and parameter toggles or status codes do not create or expose counting work.

Answer

Define an inventory status code that is reserved exclusively for counting and assign it to the counted locations.

Answer

Create a cycle count plan that includes the locations to be counted and define the counting frequency.

Answer

Enable the 'Cycle counting' option in the warehouse management parameters for the legal entity.

Question 6

A company uses the Standard cost inventory model for a manufactured item. A production order is reported as finished with a quantity of 100 units. The standard cost is $50 per unit, but the actual production costs accumulated are $5,300. The production order is then ended. What is the accounting entry for the variance?

Accepted Answer

Debit inventory $5,000; debit production variance $300; credit work in progress $5,300.. In standard costing, when a production order is reported as finished, inventory is debited at standard cost and WIP is credited for actual costs. The difference between actual and standard is posted to a production variance account. Here, inventory increases by $5,000, WIP decreases by $5,300, and a $300 unfavorable variance is recognized, balancing the entry.

Answer

Debit inventory $5,300; credit work in progress $5,300.

Answer

Debit work in progress $5,300; credit inventory $5,000; credit production variance $300.

Answer

Debit inventory $5,000; credit work in progress $5,000.

Question 7

A retail company uses Dynamics 365 Supply Chain Management and wants to ensure that inventory in a specific storage warehouse is not included in master planning supply calculations because the goods there are damaged and awaiting disposal. You need to exclude that warehouse from master planning coverage. Which configuration should you use?

Accepted Answer

Disable the 'Coverage planning' option on the warehouse in the warehouse setup.. Excluding a warehouse from master planning is done through the warehouse's coverage planning setting. Disabling it removes the warehouse's inventory from planning calculations, which is appropriate for a storage area holding damaged goods awaiting disposal. Manual warehouse flags, inventory status blocking, and item coverage overrides address different concerns and do not provide the same warehouse-level exclusion.

Answer

Exclude the warehouse from coverage by configuring the item's coverage settings to ignore that warehouse.

Answer

Assign the damaged inventory an inventory status code with 'Block inventory' enabled.

Answer

Set the warehouse's 'Manual' option to Yes in the warehouse setup.

Question 8

A distribution company uses Dynamics 365 Supply Chain Management. They need to track inventory in multiple warehouses and want to ensure that when items are received into a warehouse, they are automatically associated with the correct inventory status. The company uses inventory statuses to block items that are not yet quality-approved. Which configuration should you set up to ensure that received items are assigned a default inventory status of 'Quarantine' upon registration?

Accepted Answer

Configure the default inventory status on the item's inventory status default setup under Inventory management parameters.. The Inventory management parameters page contains a setting for default inventory status that applies to receipts. When configured, any item received into inventory is automatically assigned that status, ensuring items are quarantined until quality approval. This setting overrides other defaults and provides a consistent way to manage quality holds at the point of receipt. It is the correct configuration to meet the requirement.

Answer

Set the default inventory status on the item's inventory model group.

Answer

Set the default inventory status on the item's default order settings.

Answer

Configure the default inventory status on the warehouse's default location.

Question 9

You are implementing Asset Management in Dynamics 365 Supply Chain Management for a facilities maintenance company. The company wants to track maintenance costs for each asset and ensure that when a work order is completed, the costs are posted to the correct financial dimensions. They also need to be able to view a rollup of all costs associated with an asset over its lifetime. Which configuration is required to enable cost tracking and rollup for assets?

Accepted Answer

Enable the 'Cost control' parameter in Asset Management parameters and set up cost types.. Asset Management includes a cost control feature that, when enabled, allows costs from work orders to be accumulated on the asset. This requires setting the 'Cost control' parameter to 'Yes' in Asset Management parameters and defining cost types. Once configured, each work order line can be associated with a cost type, and upon posting, the costs are recorded against the asset. This provides a lifetime cost rollup and supports financial dimension posting.

Answer

Set up a cost center for each asset and assign it to the asset record.

Answer

Create a project for each asset and link it to the asset record.

Answer

Configure the asset's maintenance plan to include cost lines for each maintenance task.

Question 10

You are a functional consultant at a manufacturing company that uses Dynamics 365 Supply Chain Management. The company has multiple warehouses and wants to streamline the process of moving inventory between them. They require that all transfer orders automatically generate a shipment and receipt, and that the system validates that the items are available before confirming the shipment. Which configuration should you implement to meet these requirements?

Accepted Answer

Enable 'Transfer order shipping' and 'Transfer order receiving' in the Inventory and warehouse management parameters, and set up a transfer order workflow for shipment confirmation.. Transfer orders in Dynamics 365 Supply Chain Management are specifically designed for moving inventory between warehouses within the same legal entity. Enabling transfer order shipping and receiving automates the creation of shipment and receipt documents, while a workflow on shipment confirmation ensures that the system checks item availability before confirming the shipment. This configuration provides the required validation and automation, making it the correct solution for the scenario.

Answer

Configure the 'Transfer order' journal to automatically post transfers, and set the 'Automatic reservation' option to 'Always' in the Inventory and warehouse management parameters.

Answer

Enable 'Intercompany' trade and set up intercompany purchase orders and sales orders for each warehouse pair, with automatic posting of packing slips and invoices.

Answer

Set up a 'Movement' journal with a workflow that requires approval before posting, and configure warehouse locations to require 'License plate tracking'.

Question 11

A manufacturing company uses Dynamics 365 Supply Chain Management. They need to ensure that specific inventory items are automatically issued to production orders when the production order is started. Which configuration should they use?

Accepted Answer

On the production parameters, set 'Automatic BOM consumption' to 'Start'.. Configuring the 'Automatic BOM consumption' method to 'Start' in Production control parameters ensures that BOM components are automatically consumed when a production order is started. This setting applies globally to new production orders, reducing manual intervention and ensuring timely material issue.

Answer

On the item model group, select the 'Automatic issue' checkbox for production.

Answer

Configure the production order's 'Automatic BOM consumption' method to 'Start'.

Answer

Set the item's default order type to 'Production' and enable automatic BOM consumption.

Question 12

A company uses Dynamics 365 Supply Chain Management and has a warehouse that employs license plate tracking. They need to ensure that when items are received, they are directed to the correct location based on the item's dimensions and the location's capacity. Which feature should they use?

Accepted Answer

Location directives configured with 'Capacity' and 'Item dimensions' as criteria, and warehouse management parameters with 'Capacity check' enabled.. To automatically direct received items to the correct location based on item dimensions and location capacity, you must use location directives with criteria for capacity and item dimensions. Additionally, enabling the capacity check in warehouse management parameters ensures that the system validates the location's capacity before directing the item. This combination provides the required functionality for intelligent putaway.

Answer

Warehouse management parameters with 'Capacity check' enabled and 'Item dimensions' used in location setup.

Answer

Location directives with a query that filters by item dimensions and location capacity.

Answer

Wave templates with 'Replenishment' enabled and 'Containerization' used to group items by size.

Question 13

You are a functional consultant for a company that uses Dynamics 365 Supply Chain Management. The warehouse manager wants to track inventory by license plate at the warehouse level rather than just by location. You need to configure the system so that license plates are automatically generated when items are received into the warehouse. Which configuration should you enable?

Accepted Answer

Configure a mobile device menu item for receiving with the 'License plate' creation step and assign it to the worker's menu.. License plates are generated automatically when a mobile device menu item includes a 'License plate' creation step. This step instructs the system to create a new license plate during the receiving process, linking it to the items and location. Enabling the warehouse management parameter alone does not trigger automatic creation; the mobile device workflow is required.

Answer

Set up a number sequence for license plates and assign it to the 'License plate' reference in the warehouse management parameters.

Answer

Enable the 'License plate' option in the Warehouse management parameters and set the 'License plate number' group to 'Automatic'.

Answer

Enable the 'Auto-generate license plates' option in the Inventory management parameters and specify a format.

Question 14

A warehouse manager needs to configure inventory blocking so that specific items cannot be issued to production while they are awaiting quality inspection. You must set up blocking that prevents reservation and picking of those items. Which two configuration elements are required? (Choose two.)

Accepted Answer

Post an inventory blocking transaction for the item and quantity from the inventory blocking form.. Inventory blocking is enforced by posting a blocking transaction from the inventory blocking form, and that transaction requires a blocking cause code. Together, the cause code and the posted blocking transaction prevent the affected quantity from being reserved or picked until the block is removed.

Answer

Set the item's storage dimension group to include the Inventory status dimension.

Answer

Configure the item's tracking dimension group to include the Batch dimension.

Answer

Enable the 'Blocked' parameter in the warehouse's location profile for the receiving location.

Question 15

You are implementing Inventory and Warehouse Management for a company that uses Dynamics 365 Supply Chain Management. The company wants to use the 'Inventory blocking' feature to prevent certain items from being reserved or consumed. You need to configure inventory blocking to meet the following requirements: (1) Blocked inventory must be excluded from master planning, and (2) Blocked inventory must be prevented from being picked for sales orders. Which TWO actions must you perform? (Choose two.)

Accepted Answer

Set up an inventory status that has the 'Inventory blocking' flag set to 'Yes' and assign it to the items.. To block inventory and exclude it from planning and picking, you can either assign an inventory status with the 'Inventory blocking' flag set to 'Yes' to the items, or create an inventory blocking transaction directly. Both methods prevent reservation and picking and exclude the inventory from master planning. The inventory blocking cause alone does not block; it must be used with a blocking action.

Answer

Configure the item's 'Inventory blocking' parameter to 'Yes' in the product master.

Answer

Enable the 'Block inventory' option in the Warehouse management parameters.

Answer

Create an inventory blocking cause and assign it to the items to be blocked.