MB-920 Describe Dynamics 365 Supply Chain Management Practice Question
A food processing company uses Dynamics 365 Supply Chain Management. They need to track raw materials by lot number for quality control and recall management. The company purchases ingredients from multiple vendors, and each lot must be traceable from the vendor to the final product. The company also needs to ensure that when a product is produced, the system automatically consumes the raw materials based on the batch order. You need to configure the system to support lot tracking and automatic consumption. You have the following options: A. Enable lot tracking in the Product master for each raw material. Use the Batch order process with automatic consumption set to 'At start' or 'At completion'. B. Use the Warehouse Management module to configure location directives for lot-controlled items. C. Enable serial tracking for all raw materials and manually enter serial numbers during production. D. Use the Inventory Management module to create inventory adjustments for lot consumption. Which option should you choose?
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
✓
Enable lot tracking in the Product master for each raw material. Use the Batch order process with automatic consumption set to 'At start' or 'At completion'.
Enabling lot tracking in the Product master for each raw material and using the batch order process with automatic consumption set to 'At start' or 'At completion' ensures full lot traceability from vendor to final product and automates raw material consumption during production. Option D is incorrect because inventory adjustments are not designed for production consumption; they are used for manual stock corrections, not for automatically consuming raw materials during production.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Enable lot tracking in the Product master for each raw material. Use the Batch order process with automatic consumption set to 'At start' or 'At completion'.
Why this is correct
Correct. Enabling lot tracking in the Product master and using batch orders with automatic consumption (set to 'At start' or 'At completion') provides full traceability and automated consumption.
- ✗
Use the Warehouse Management module to configure location directives for lot-controlled items.
Why it's wrong here
Incorrect because Warehouse Management location directives are used for warehouse operations like picking and putaway, not for lot traceability and automatic consumption in production.
- ✗
Enable serial tracking for all raw materials and manually enter serial numbers during production.
Why it's wrong here
Incorrect because serial tracking tracks individual items, not lots, and manually entering serial numbers is inefficient and error-prone for batch production.
- ✗
Use the Inventory Management module to create inventory adjustments for lot consumption.
Why it's wrong here
Incorrect. Inventory adjustments are used for manual stock corrections, not for automatically consuming raw materials during production. They do not support lot traceability in the production process.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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