CCNA Describe Dynamics 365 Supply Chain Management Questions

A company needs to track the cost of raw materials from the moment they are received until the finished goods are sold. Which costing method should they use to ensure that each unit's cost is individually tracked?

Which THREE capabilities are provided by the Dynamics 365 Supply Chain Management's Copilot AI features?

A company uses Dynamics 365 Supply Chain Management and wants to implement a policy that prevents picking of expired or near-expiry inventory for customer orders. The system should automatically block such inventory from being reserved. Which feature should they use?

A production planner reviews a route operation for a manufacturing order. How long, in hours, is the total processing time for this operation?

A company uses Dynamics 365 Supply Chain Management. They need to ensure that a specific item is always sourced from a preferred vendor, even if another vendor has a lower price. Which configuration should be used?

Which THREE components are part of the Dynamics 365 Supply Chain Management warehouse management system?

A company uses Dynamics 365 Supply Chain Management for warehouse management. They notice that picking routes are inefficient, causing delays. They want to optimize picking paths automatically. Which feature should they implement?

A company uses Dynamics 365 Supply Chain Management and wants to automate the replenishment of items from a central warehouse to regional distribution centers based on real-time sales data. Which concept should they use?

Match each Dynamics 365 Project Operations pricing method to its description.

A production supervisor needs to see which production orders are currently running and their status. Which workspace should they use?

A company uses Dynamics 365 Supply Chain Management and wants to use AI to optimize inventory levels by predicting stockouts and suggesting reorder quantities. Which Copilot feature should they use?

Refer to the exhibit. A transfer order is shipped but not received. Which step should be performed next?

Contoso Ltd. is a global electronics manufacturer using Dynamics 365 Supply Chain Management. They have three production sites: Seattle (primary), Chicago, and Atlanta. Currently, all sites use manual picking processes. Contoso wants to implement warehouse management system (WMS) functionality to improve efficiency. The Seattle site is already using WMS, but the other two sites are not. The project requires minimal disruption to ongoing operations. The IT team is considering three approaches: (1) Enable WMS for all sites simultaneously after a weekend cutover, (2) Enable WMS for Chicago first, then Atlanta after one month, and (3) Enable WMS only for Seattle and keep others manual. The warehouse manager is concerned about training workers on mobile devices. What is the best course of action?

You are the supply chain manager at a manufacturing company using Dynamics 365 Supply Chain Management. The company operates three warehouses: WH01 (finished goods), WH02 (raw materials), and WH03 (work-in-process). You need to configure inventory visibility for real-time demand planning. The company requires that inventory levels from all three warehouses be viewable in a single dashboard, with the ability to allocate stock to sales orders before physical pick. Additionally, you must ensure that the system can handle soft reservations across warehouses without impacting the physical inventory counts. You have the following options: A. Configure the Inventory Visibility Service add-in and set up soft reservations using the Allocation API. B. Use the standard Inventory On-hand report and manually reserve stock per warehouse. C. Implement Warehouse Management System (WMS) and use the wave execution to allocate stock. D. Set up Product Information Management with transfer orders to move stock between warehouses. Which option should you choose?

A company uses Dynamics 365 Supply Chain Management with advanced warehouse management. They want to ensure that workers picking sales orders are directed to the nearest location with available inventory. Which configuration should they use?

A distribution company uses Dynamics 365 Supply Chain Management to manage its supply chain. Recently, the company has been facing issues with late deliveries to customers. The root cause analysis shows that the planning department is not accurately accounting for lead times from suppliers. The company wants to improve the accuracy of purchase order delivery dates. You need to configure the system to automatically calculate purchase order delivery dates based on vendor lead times and calendar exceptions. The company uses the Master Planning module for supply planning. You have the following options: A. Set up vendor lead times in the Vendor master and configure the purchase lead time field in the Product master. Then run Master Planning to generate planned purchase orders with correct delivery dates. B. Manually adjust delivery dates on each purchase order based on phone calls with vendors. C. Use the Procurement and Sourcing module to create blanket purchase agreements that override lead times. D. Configure the Warehouse Management module to use the shipment consolidation functionality to adjust delivery dates. Which option should you choose?

Which TWO features in Dynamics 365 Supply Chain Management help reduce inventory carrying costs?

A manufacturing company uses Dynamics 365 Supply Chain Management. The production planner notices that a planned production order for 1,000 units of finished good FG-100 has a material shortage for component RM-200. The planner wants to automatically create purchase orders for the missing component and reschedule the production order. Which feature should be configured?

Which THREE are valid item model groups used in Dynamics 365 Supply Chain Management?

A medical device manufacturer uses Dynamics 365 Supply Chain Management. They are subject to strict regulatory requirements requiring complete traceability of each device to its raw material lots. The company uses process manufacturing with batch orders. Each finished device has a unique serial number that must be linked to the lot numbers of all raw materials used. The company also needs to maintain a genealogy of components. You need to configure the system to capture this traceability. You have the following options: A. Enable serial tracking for the finished device and lot tracking for raw materials. Use the batch order to record the consumption of raw material lots against the serial number. B. Use the Product master to assign a serial number to the finished good and manually enter lot numbers in a free text field. C. Use the Warehouse Management module to create location labels that include serial and lot information. D. Use the Quality management module to create quality orders for each batch and associate them with serial numbers. Which option should you choose?

A company uses Dynamics 365 Supply Chain Management with warehouse management. Workers are spending too much time traveling between picking locations. Which strategy should be implemented to reduce travel time?

A manufacturer uses Dynamics 365 Supply Chain Management. They want to implement a production flow that supports lean manufacturing. Which THREE features should they consider?

A manufacturing company uses Dynamics 365 Supply Chain Management. They need to ensure that raw materials are automatically ordered when inventory falls below a predefined level. Which feature should they configure?

A retail company uses Dynamics 365 Supply Chain Management to manage inventory across multiple stores. They want to ensure that stock levels at stores are automatically replenished from the central warehouse when inventory drops below a defined threshold. Which planning method should they configure?

Which TWO capabilities are provided by the Warehouse management module in Dynamics 365 Supply Chain Management?

A manufacturing company uses Dynamics 365 Supply Chain Management. They want to ensure that raw materials are available for production without overstocking. Which feature should they use to calculate material requirements based on production schedules?

A company is evaluating Dynamics 365 Supply Chain Management for its complex manufacturing process that involves both discrete and process manufacturing. Which capability should they use to handle the co-products and by-products generated during production?

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 should you check first?

A company uses Dynamics 365 Supply Chain Management and wants to ensure that raw materials are available for production without overstocking. They use a planning method that considers both demand and supply. Which planning method is most appropriate?

Which TWO features are part of Dynamics 365 Supply Chain Management's warehouse management capabilities?

A company uses Dynamics 365 Supply Chain Management with advanced warehouse management. They need to ensure that when a purchase order is received, the system automatically creates work to put away the items in a specific location based on the product's storage dimension group. Which configuration is required?

A company uses Dynamics 365 Supply Chain Management to plan production. They need to ensure that materials are available to meet production schedules without overstocking. Which module would they use to balance supply and demand?

A company uses Dynamics 365 Supply Chain Management to manage its warehouse operations. The warehouse manager wants to ensure that items are stored in specific locations based on their storage dimensions, such as 'HighVolume' and 'LowTurnover'. Which feature should be configured to automatically guide putaway operations?

A manufacturer wants to implement a pull-based production system where work cells signal upstream processes when they need more parts. Which Dynamics 365 Supply Chain Management feature should they use?

A company uses Dynamics 365 Supply Chain Management to manage inventory. They want to automatically reduce the quantity of a component when a finished product is reported as finished. Which feature should they use?

A warehouse manager configures a location profile as shown. A mobile device user attempts to put away a pallet of item A into location BULK-001. The system rejects the putaway. What is the most likely reason?

A manufacturing company is implementing Dynamics 365 Supply Chain Management. They need to track raw material consumption and finished goods output in real time. Which module should they configure to achieve this?

A company uses Dynamics 365 Supply Chain Management to manage inventory across multiple warehouses. They want to ensure that high-value items are stored in the most secure locations. What feature should they use to define storage restrictions based on item value?

Refer to the exhibit. A company manufactures a finished good (FGI-100) and produces a co-product (CP-01) during production. The cost accountant notices that the cost of FGI-100 does not reflect the offset from the co-product. What should they configure?

Refer to the exhibit. A company uses demand forecasting with ARIMA method and a historical horizon of 12 months. What is the primary advantage of using ARIMA for forecasting?

A company uses Dynamics 365 Supply Chain Management and wants to implement a quality check process for incoming raw materials. The quality inspector must receive a notification when a purchase order receipt is registered, and the system must block the inventory until the inspection is passed. Which module should be configured?

A company uses Dynamics 365 Supply Chain Management and needs to ensure that all inbound shipments from a specific vendor are inspected before being put away. Which feature should be configured?

Which THREE are features of Dynamics 365 Supply Chain Management for quality control?

A company uses Dynamics 365 Supply Chain Management to manage vendor collaboration. They want vendors to view and respond to purchase orders directly in the system. Which portal or workspace should they enable?

A company wants to enable its warehouse workers to use handheld scanners to confirm picking activities. What must be configured in Dynamics 365 Supply Chain Management?

A company uses Dynamics 365 Supply Chain Management. They want to use AI to forecast demand and suggest replenishment. Which feature should they enable?

A company uses Dynamics 365 Supply Chain Management and wants to automate the creation of purchase orders based on demand from sales orders. Which feature should they use?

You are the supply chain consultant for a global electronics manufacturer that uses Dynamics 365 Supply Chain Management. The company procures components from multiple vendors and assembles finished goods in three factories: Berlin, Shanghai, and Monterrey. The current process requires planners to manually review demand and supply for each site and create purchase orders. The company wants to automate the generation of purchase requisitions based on forecasted demand and current inventory levels. Additionally, they need to ensure that the system respects vendor lead times and minimum order quantities. You propose using master planning to generate planned purchase orders. However, the procurement manager is concerned that planned orders might be created too frequently for low-demand items, causing an excessive number of small purchases. What should you configure to consolidate planned purchase orders for the same vendor within a defined time window?

A company uses Dynamics 365 Supply Chain Management to manage warehouse operations. They want to ensure that workers are guided step-by-step during the picking process using mobile devices. Which feature should they implement?

A manufacturing company uses Dynamics 365 Supply Chain Management. They want to use AI to forecast demand for raw materials based on historical sales and external factors like weather. Which feature should they enable?

A company uses Dynamics 365 Supply Chain Management. They have multiple vendors supplying the same raw material. The procurement manager wants to automatically allocate purchase orders to the vendor with the best combination of price, lead time, and quality rating. Which feature should they use?

Refer to the exhibit. The production order status is 'Started' and BOM consumption is set to 'Manual'. What must happen before the order can be reported as finished?

A company wants to use Dynamics 365 Supply Chain Management to optimize their transportation costs and delivery schedules. Which module should they primarily use?

Which TWO of the following are valid warehouse management processes in Dynamics 365 Supply Chain Management?

A company uses Dynamics 365 Supply Chain Management. They want to use the product configurator to allow salespeople to configure a product's options (e.g., color, size) based on rules. What should they create?

A company wants to use AI to predict potential stockouts and suggest replenishment actions. Which Dynamics 365 Supply Chain Management capability should they leverage?

A company using Dynamics 365 Supply Chain Management notices that inventory accuracy is low due to manual data entry errors. Which feature can help automate data capture and improve accuracy?

Which TWO of the following are required to use the Planning Optimization add-in in Dynamics 365 Supply Chain Management?

You are a Dynamics 365 Supply Chain Management functional consultant for a food and beverage company. The company receives raw materials from multiple suppliers and needs to enforce quality inspections on all inbound shipments of dairy products. If a dairy shipment fails inspection, the entire lot must be quarantined and cannot be used in production. Additionally, the company wants to automatically generate purchase orders when the inventory level of a key ingredient falls below a reorder point. The inventory planner will review and approve the suggested orders before they are sent to suppliers. You need to configure the system to: (1) enforce quality inspections on inbound dairy products; (2) automatically quarantine failed lots; (3) generate purchase order suggestions based on reorder points. What should you do?

Which TWO are benefits of using warehouse management in Dynamics 365 Supply Chain Management?

A logistics company wants to use Dynamics 365 Supply Chain Management to track transportation costs and optimize routing. Which module should they implement?

A company uses Dynamics 365 Supply Chain Management and wants to track production costs in real time. Which feature should they use?

A food and beverage company uses Dynamics 365 Supply Chain Management. They need to manage batch attributes such as shelf-life and allergen information for raw materials. Which feature should they configure?

Match each Dynamics 365 Supply Chain Management concept to its description.

A company uses Dynamics 365 Supply Chain Management for process manufacturing. They need to enforce that a specific formula version is used for a product based on its shelf life. Which THREE configurations are required?

A company uses Dynamics 365 Supply Chain Management and notices that inventory costs are increasing due to high carrying costs for slow-moving items. They want to automate the classification of items based on usage value. Which feature should they use?

A manufacturing company uses Dynamics 365 Supply Chain Management. The production manager wants to reduce setup time on a bottleneck machine. Which THREE actions should the manager take?

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?

A company needs to calculate the cost of manufactured products including direct materials, labor, and overhead. Which costing methodology in Dynamics 365 Supply Chain Management should they use?

A warehouse receives a shipment and needs to put items away based on their velocity (fast-movers near shipping). Which warehouse strategy should they configure?

A company uses Dynamics 365 Supply Chain Management with demand-driven material requirements planning (DDMRP). They notice that the system is not generating replenishment orders for certain items even though the stock is below the reorder point. What could be the issue?

You are a supply chain consultant for a mid-sized manufacturing company that uses Dynamics 365 Supply Chain Management. The company produces electronic components and has two warehouses: one for raw materials (Warehouse A) and one for finished goods (Warehouse B). They have been experiencing frequent delays in production because raw materials are not available when needed, even though the materials are in stock at Warehouse A. The production scheduler reports that the system does not automatically reserve materials for production orders. Additionally, the warehouse manager wants to implement a policy where high-value raw materials are stored in a secure, locked area within Warehouse A, and only authorized workers can pick them. You need to configure the system to: (1) automatically reserve raw materials for production orders when they are firm planned; (2) restrict picking of high-value materials to specific workers. What should you do?

A batch job for master planning is configured as shown. The job runs daily at 2 AM. The planner notices that planned orders are not being firmed automatically. What is the likely reason?

A manufacturing company uses Dynamics 365 Supply Chain Management. They want to optimize inventory levels by using a replenishment strategy that maintains a constant stock level based on forecast demand. Which replenishment method should they use?

A company uses Dynamics 365 Supply Chain Management and wants to automate the replenishment of items based on historical demand and predefined minimum stock levels. Which feature should they configure?