Quick Answer
The answer is wave processing. This warehouse concept allows you to group shipments into waves based on shared criteria such as a common customer, route, or delivery method, which optimizes the picking and shipping process by consolidating items that are frequently shipped together. On the Microsoft Dynamics 365 Fundamentals ERP MB-920 exam, this question tests your understanding of core warehouse management concepts, and a common trap is confusing wave processing with cluster picking—a specific picking method—or with cross-docking, which bypasses storage entirely. Remember, wave processing is about grouping work at the shipment level to improve efficiency, not about how items are physically picked or moved. A simple memory tip: think of a “wave” as a group of orders that ride the same logistical tide.
This MB-920 practice question tests your understanding of describe dynamics 365 supply chain management. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
A distribution company uses Dynamics 365 Supply Chain Management and needs to optimize warehouse operations by grouping items that are frequently shipped together. Which warehouse concept should they apply?
Cross-docking
Why wrong: Cross-docking transfers goods directly from inbound to outbound without storage.
Cluster picking
Why wrong: Cluster picking is a picking method, not a grouping strategy for shipments.
Wave processing
Wave processing groups shipments for efficient picking and shipping.
Kanban
Why wrong: Kanban is a lean manufacturing pull system.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Wave processing
Option A is correct because wave processing allows grouping of shipments into waves based on criteria like common customer or route, optimizing picking and shipping. Option B is wrong because cluster picking is a specific picking method. Option C is wrong because cross-docking is for direct transfer without storage. Option D is wrong because kanban is for lean manufacturing.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
Cross-docking
Why it's wrong here
Cross-docking transfers goods directly from inbound to outbound without storage.
Cluster picking
Why it's wrong here
Cluster picking is a picking method, not a grouping strategy for shipments.
Wave processing
Why this is correct
Wave processing groups shipments for efficient picking and shipping.
Related concept
Read the scenario before looking for a memorised answer.
Kanban
Why it's wrong here
Kanban is a lean manufacturing pull system.
Common exam traps
Many certification questions include familiar terms but test a specific constraint. Read the exact wording before choosing an answer that is generally true but wrong for this case.
Detailed technical explanation
This question should be treated as a scenario, not a definition check. Identify the problem, the constraint and the best action. Then compare each option against those facts.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
A media company stores terabytes of video archives that are accessed once a year for audit purposes. Moving these objects to a cold storage tier (Azure Archive, S3 Glacier, or Google Nearline) costs a fraction of hot storage. Questions like this test whether you understand storage tiers, access frequency tradeoffs, and retrieval latency requirements.
What to study next
Identify which MB-920 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
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FAQ
Describe Dynamics 365 Supply Chain Management — This question tests Describe Dynamics 365 Supply Chain Management — Read the scenario before looking for a memorised answer..
The correct answer is: Wave processing — Option A is correct because wave processing allows grouping of shipments into waves based on criteria like common customer or route, optimizing picking and shipping. Option B is wrong because cluster picking is a specific picking method. Option C is wrong because cross-docking is for direct transfer without storage. Option D is wrong because kanban is for lean manufacturing.
Identify which MB-920 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
Read the scenario before looking for a memorised answer.
About these practice questions
Courseiva creates original exam-style practice questions with explanations and wrong-answer analysis. It does not publish real exam questions, exam dumps, or protected exam content. Learn why practice questions differ from exam dumps →
Same concept, more angles
These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. A distribution company uses Dynamics 365 Supply Chain Management. They want to improve picking efficiency in the warehouse by grouping multiple orders into a single pick run. Which warehouse process should they configure?
easyWhy A: Option A is correct because wave processing allows grouping orders into waves for efficient picking. Option B is wrong because load planning is for transportation. Option C is wrong because batch balancing is for production. Option D is wrong because inbound shipment is for receiving.
Variation 2. A distribution company uses Dynamics 365 Supply Chain Management. They want to optimize warehouse picking routes to reduce travel time. Which module should they configure?
easyWhy B: Option B is correct because warehouse management includes wave processing and route optimization for picking. Option A is wrong because transportation management is for inbound/outbound freight. Option C is wrong because inventory management handles stock levels, not picking routes. Option D is wrong because procurement and sourcing is for purchasing.
Last reviewed: Jun 21, 2026
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.
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