MB-920 Describe Dynamics 365 Supply Chain Management Practice Question
This MB-920 practice question tests your understanding of describe dynamics 365 supply chain management. The scenario asks you to isolate a root cause — eliminate options that address a different problem before choosing. 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.
Contoso Ltd. is a global manufacturer of industrial pumps. They use Dynamics 365 Supply Chain Management with warehouse management (WMS) enabled. The warehouse in Chicago has been experiencing frequent inventory discrepancies during cycle counting. The discrepancies are mostly for items stored in bulk locations (floor storage) with high movement volume. The warehouse manager suspects that the issue is related to how inventory transactions are processed during outbound picking. When pickers confirm a pick, the system immediately reduces on-hand inventory. However, the physical movement to the staging area often happens later, sometimes after the system confirmation. This timing difference leads to phantom inventory. The manager wants to avoid a full physical inventory and implement a solution that aligns system and physical movements without major process changes. They consider four options:
A. Enable negative inventory adjustments for bulk locations.
B. Use the 'Registration' process instead of picking confirmation for outbound orders.
C. Implement a staging location and use the 'Stage for packing' functionality to defer inventory reduction until the item is physically staged.
D. Disable cycle counting for bulk locations and rely on annual physical counts.
Which option should Contoso implement?
Clue words in this question
Noticing these words before you look at the options changes how you read each choice.
Clue: "immediately / without restart"
Why it matters: Time or reboot constraint — the correct answer must take effect right away without requiring a reboot or reload.
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Implement a staging location and use the 'Stage for packing' functionality to defer inventory reduction until the item is physically staged.
Option C is correct because implementing a staging location with the 'Stage for packing' functionality allows the system to defer inventory reduction until the item is physically moved to the staging area. This aligns the system transaction with the physical movement, eliminating the phantom inventory caused by early picking confirmation. It solves the timing discrepancy without requiring major process changes or a full physical inventory.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
✗
Disable cycle counting for bulk locations and rely on annual physical counts.
Why it's wrong here
This removes visibility and does not fix the process issue.
✗
Enable negative inventory adjustments for bulk locations.
Why it's wrong here
Negative adjustments would allow on-hand to go negative without solving the timing issue.
✓
Implement a staging location and use the 'Stage for packing' functionality to defer inventory reduction until the item is physically staged.
Why this is correct
This aligns system deduction with physical movement to staging.
Clue confirmation
The clue word "immediately / without restart" in the question point toward this answer.
Related concept
Read the scenario before looking for a memorised answer.
✗
Use the 'Registration' process instead of picking confirmation for outbound orders.
Why it's wrong here
Registration is for inbound receipts, not outbound picking.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates may confuse 'Registration' (which still reduces inventory at registration time) with a solution that defers reduction, or they may think enabling negative inventory is a valid workaround, when in fact it only masks the timing discrepancy without fixing the process alignment.
Detailed technical explanation
How to think about this question
The 'Stage for packing' functionality in Dynamics 365 Supply Chain Management with WMS creates a staging location that acts as a buffer between picking and packing. When a picker confirms a pick, the inventory is moved to the staging location (not reduced from on-hand), and the reduction occurs only when the item is physically staged or packed. This leverages the WMS location hierarchy and work creation processes to decouple the inventory transaction from the physical movement, ensuring system accuracy. In real-world scenarios, this is critical for high-volume bulk locations where pick confirmation often happens before physical staging due to batch processing or mobile device workflows.
KKey Concepts to Remember
Read the scenario before looking for a memorised answer.
Find the constraint that changes the correct option.
Eliminate answers that are true in general but not in this case.
TExam Day Tips
→Watch for words such as best, first, most likely and least administrative effort.
→Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
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
Got this wrong? Here's your next step.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Describe Dynamics 365 Supply Chain Management — This question tests Describe Dynamics 365 Supply Chain Management — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Implement a staging location and use the 'Stage for packing' functionality to defer inventory reduction until the item is physically staged. — Option C is correct because implementing a staging location with the 'Stage for packing' functionality allows the system to defer inventory reduction until the item is physically moved to the staging area. This aligns the system transaction with the physical movement, eliminating the phantom inventory caused by early picking confirmation. It solves the timing discrepancy without requiring major process changes or a full physical inventory.
What should I do if I get this MB-920 question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Are there clue words in this question I should notice?
Yes — watch for: "immediately / without restart". Time or reboot constraint — the correct answer must take effect right away without requiring a reboot or reload.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Question Discussion
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