MB-920 Describe Dynamics 365 Supply Chain Management Practice Question
A company uses Dynamics 365 Supply Chain Management with process manufacturing. They need to manage byproducts and co-products in a production order. Which functionality should they use?
⚠ Common exam trap
Many candidates confuse the Bill of Materials (BOM) used in discrete manufacturing with the Formula used in process manufacturing, not realizing that only formulas support co-products and by-products.
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
✓
Formula with co-products and by-products
In process manufacturing, co-products and by-products are managed using a formula, not a bill of materials (BOM). The formula defines the production recipe, including the main output, co-products (intended secondary outputs), and by-products (unavoidable secondary outputs). This allows the system to automatically credit or cost these outputs during production order processing.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Bill of materials (BOM)
Why it's wrong here
BOM is for discrete manufacturing, not formula-based co-products.
- ✗
Location directives
Why it's wrong here
Location directives guide putaway, not production output.
- ✗
Transfer orders
Why it's wrong here
Transfer orders move inventory, not manage co-products.
- ✓
Formula with co-products and by-products
Why this is correct
Formulas in process manufacturing handle multiple outputs.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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