MB-920 Describe Dynamics 365 Supply Chain Management Practice Question
Contoso, Ltd. is a manufacturer of custom machinery. They use Dynamics 365 Supply Chain Management with production orders and subcontracting. A production order for a custom drilling machine requires a specialized heat treatment process that is performed by an external vendor. The heat treatment is set up as a route operation with a resource of type 'Vendor' and a subcontracting purchase agreement. The production order has been released and started, but the vendor reports that they have not received the purchase order for the heat treatment service. The production planner checks the purchase order and finds that it has not been created yet. The planner confirms that the purchase agreement is active and covers the required service. What is the most likely reason that the purchase order was not automatically generated?
⚠ Common exam trap
Many candidates assume a released production order automatically generates all subcontracting purchase orders, but the system requires the route operation to be scheduled first to trigger the purchase order creation.
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 operation for heat treatment has not been scheduled on the production route.
In Dynamics 365 Supply Chain Management, a subcontracting purchase order is automatically generated only after the corresponding route operation has been scheduled on the production route. Without scheduling, the system does not know when the service is needed and therefore does not trigger the purchase order creation, even if the purchase agreement is active and the production order has been released.
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 purchase agreement has expired or is not approved.
Why it's wrong here
The planner confirmed the purchase agreement is active and covers the service.
- ✓
The operation for heat treatment has not been scheduled on the production route.
Why this is correct
The system generates the purchase order only after the operation is scheduled; unscheduled operations do not trigger purchase order creation.
- ✗
The production order status is 'Estimated' and needs to be released first.
Why it's wrong here
The order is already released and started, so status is beyond 'Estimated'.
- ✗
The vendor resource is not set up correctly in the system.
Why it's wrong here
The resource type 'Vendor' is appropriate for subcontracting; this is not the issue.
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