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MB-920 Practice Question: Describe the core capabilities of the finance and operations apps

A company uses Dynamics 365 Supply Chain Management to manage inventory across multiple warehouses. They want to implement a strategy where fast-moving items are stored closer to the shipping dock to reduce travel time. Currently, all items are stored randomly. You need to configure the system to automatically assign storage locations based on item movement frequency. The company uses advanced warehouse management. What should you do?

⚠ Common exam trap

Watch out — candidates often confuse location directives (which control putaway and storage) with wave processing (which controls picking and shipment release), leading them to select Option B incorrectly.

Answer choices

Why each option matters

Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.

Correct answer & explanation

Configure location directives to direct putaway to locations near the shipping dock for items with high movement frequency.

Location directives in Dynamics 365 Supply Chain Management automatically guide putaway processes by evaluating criteria such as item movement frequency. By configuring a location directive with a query that identifies fast-moving items and directing them to locations near the shipping dock, the system ensures efficient, rule-based storage without manual intervention. This directly addresses the requirement to reduce travel time using advanced warehouse management capabilities.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • Configure location directives to direct putaway to locations near the shipping dock for items with high movement frequency.

    Why this is correct

    Location directives automate putaway based on criteria.

  • Set up wave processing to prioritize fast-moving items during picking.

    Why it's wrong here

    Wave processing is for outbound picking, not inbound putaway.

  • Define inventory statuses and enable 'Auto-report as finished' to trigger movement.

    Why it's wrong here

    Auto-report as finished is for production, not putaway.

  • Create a new inventory status for fast-moving items and manually move them to desired locations.

    Why it's wrong here

    Manual movement is not automatic.

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Written by Johnson Ajibi, MSc IT Security

Senior Network & Security Engineer · founder of Courseiva

This MB-920 practice question is part of Courseiva's free Microsoft certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the MB-920 exam.