Describe the core capabilities of the finance and operations apps →hardMultiple ChoiceObjective-mapped
MB-920 Practice Question: Describe the core capabilities of the finance and operations apps
A manufacturing company uses Dynamics 365 Supply Chain Management. The production manager reports that the system is not automatically reserving raw materials when a production order is released. What is the most likely cause?
⚠ Common exam trap
Watch out — candidates often confuse the reservation hierarchy with BOM approval or default order settings, assuming that material reservation is automatically enabled for all production orders, when in fact it requires explicit configuration in the reservation hierarchy.
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
✓
The reservation hierarchy is not configured for production
The reservation hierarchy in Dynamics 365 Supply Chain Management determines whether raw materials are automatically reserved when a production order is released. If the hierarchy is not configured for production (e.g., set to 'None' or only for sales orders), the system will not perform automatic reservation, leaving materials unreserved. This is a common setup issue that directly controls the reservation behavior at order release.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
The default order settings for the item are incorrect
Why it's wrong here
Default order settings affect replenishment, not reservation for production orders.
- ✗
The bom version is not approved
Why it's wrong here
An unapproved BOM version prevents production but does not affect reservation if order is created.
- ✗
The explosion date on the production order is set to a future date
Why it's wrong here
Explosion date affects BOM calculation timing, not material reservation.
- ✓
The reservation hierarchy is not configured for production
Why this is correct
Reservation hierarchy defines at which stage materials are reserved; if not set, no automatic reservation occurs.
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