Courseiva

CCNA Describe Dynamics 365 Supply Chain Management Questions

75 of 324 questions · Page 2/5 · Describe Dynamics 365 Supply Chain Management · Answers revealed

Practice these questionsDomain overviewAll questions
76
MCQmedium

A company uses Dynamics 365 Supply Chain Management to manage multi-site operations. They need to transfer inventory between two warehouses in different legal entities. What is the correct approach?

A.Use an inventory adjustment journal to reduce stock in one warehouse and increase in the other.
B.Create a transfer order between the two warehouses.
C.Create a purchase order from the receiving warehouse to the sending warehouse.
D.Use intercompany order processing to create a purchase order and sales order.
AnswerD

Correct. Intercompany order processing creates both a purchase order and a sales order to properly handle the transfer between legal entities.

Why this answer

Intercompany order processing is the correct approach for transferring inventory between warehouses in different legal entities. It creates a purchase order in the receiving company and a sales order in the sending company, properly recording the transaction across legal entities. Option A is incorrect because inventory adjustment journals do not track intercompany transfers and are meant for internal adjustments.

Option B is incorrect because transfer orders are only valid within a single legal entity. Option C is incorrect because a purchase order alone does not create the corresponding sales order needed for intercompany accounting.

Exam trap

Candidates often mistake transfer orders as the default for any inventory transfer, but transfer orders are limited to the same legal entity. Intercompany order processing is required when separate legal entities are involved.

Practice this question →
77
MCQmedium

A manufacturing company is implementing Dynamics 365 Supply Chain Management. They want to ensure that raw material inventory is automatically replenished when stock falls below a predefined level. Which feature should they configure?

A.Quality management
B.ABC classification
C.Reorder point planning
D.Vendor collaboration
AnswerC

Reorder point planning triggers replenishment when stock falls below a defined level.

Why this answer

Reorder point planning in Dynamics 365 Supply Chain Management automatically triggers replenishment when inventory drops below a predefined reorder point. Option A (Quality management) is incorrect because it is used for inspections and quality control, not for inventory replenishment. Option B (ABC classification) is incorrect because it is used to categorize items based on value and importance, not to trigger replenishment.

Option D (Vendor collaboration) is incorrect because it facilitates communication with vendors but does not automatically replenish inventory.

Practice this question →
78
MCQmedium

A furniture manufacturer uses Dynamics 365 Supply Chain Management. They need to ensure that raw materials are replenished automatically when inventory falls below a certain level. Which feature should be configured?

A.Reorder point
B.Vendor collaboration
C.Safety stock
D.Master planning
AnswerA

Reorder point triggers replenishment when inventory falls to a defined level.

Why this answer

The reorder point feature in Dynamics 365 Supply Chain Management triggers automatic replenishment when inventory levels drop to a predefined threshold. This ensures raw materials are reordered without manual intervention, directly addressing the requirement for automatic replenishment when inventory falls below a certain level.

Exam trap

The trap here is that candidates often confuse safety stock with the reorder point, but safety stock is a component of the reorder point calculation and does not itself trigger automatic replenishment.

How to eliminate wrong answers

Option B is wrong because vendor collaboration is a portal for sharing purchase orders and forecasts with suppliers, not an automatic replenishment trigger based on inventory levels. Option C is wrong because safety stock is a buffer quantity to protect against stockouts, but it does not automatically generate replenishment orders; it only defines a minimum level. Option D is wrong because master planning is a broader process that calculates net requirements and generates planned orders, but it is not a specific feature for triggering replenishment at a fixed inventory level; it runs on a schedule rather than reacting in real time to inventory drops.

Practice this question →
79
MCQhard

A distribution company uses Dynamics 365 Supply Chain Management. They notice that warehouse workers are scanning incorrect items during picking, leading to shipment errors. Which feature should they implement to reduce errors?

A.Cycle counting
B.RFID scanning
C.License plate tracking
D.Wave processing
AnswerC

License plate tracking ensures workers scan the correct license plate, reducing picking errors.

Why this answer

License plate tracking (LPT) enables warehouse workers to scan a unique barcode on each pallet or container, which is linked to the exact inventory items and quantities in the system. By requiring a license plate scan during picking, the system validates that the correct item is being picked, preventing incorrect item selection and reducing shipment errors.

Exam trap

The trap here is that candidates may confuse RFID scanning (a hardware technology) with license plate tracking (a software feature that uses barcodes or RFID tags for validation), or assume wave processing (a grouping method) directly prevents picking errors, when in fact only license plate tracking provides the required item-level validation during the pick operation.

How to eliminate wrong answers

Option A is wrong because cycle counting is a periodic inventory audit method used to verify stock accuracy, not a real-time picking validation tool. Option B is wrong because RFID scanning is a technology for automatic identification and data capture, but it does not inherently enforce item-level validation during picking unless combined with license plate tracking; the question specifically asks for a feature to reduce picking errors, and RFID alone does not provide the contextual validation that LPT does. Option D is wrong because wave processing is a method of grouping orders into waves for efficient picking and shipping, but it does not include item validation at the pick level.

Practice this question →
80
MCQmedium

A manufacturing company uses Dynamics 365 Supply Chain Management. The production manager notices that raw material inventory levels frequently drop below the reorder point, causing production delays. Which feature should be configured to automatically suggest purchase orders based on demand and current inventory levels?

A.Landed cost
B.Warehouse management
C.Inventory Visibility
D.Master planning
AnswerD

Master planning calculates material requirements based on demand and inventory and generates planned purchase orders.

Why this answer

Master planning in Dynamics 365 Supply Chain Management calculates material and capacity requirements based on demand and automatically generates planned purchase orders to maintain optimal inventory levels. Option A (Landed cost) is used to manage costs associated with importing goods, not for automatic replenishment. Option B (Warehouse management) focuses on warehouse operations like receiving, picking, and shipping, not on planning purchase orders.

Option C (Inventory Visibility) provides real-time inventory visibility but does not automatically suggest purchase orders.

Practice this question →
81
MCQmedium

A company uses Dynamics 365 Supply Chain Management to manage its supply chain. They notice that purchase order prices are not being updated correctly when vendors change prices in the vendor portal. What should they configure to automatically update purchase order prices based on vendor price changes?

A.Vendor rebate
B.Purchase price update
C.Purchase order approval workflow
D.Trade agreement journal
AnswerB

Purchase price update automatically updates PO prices when vendor prices change.

Why this answer

'Purchase price update' (part of Procurement and Sourcing) automatically updates purchase order prices when vendor prices change. Option A is wrong because 'Vendor rebate' is for discounts, not price updates. Option C is wrong because 'Purchase order approval workflow' is for authorization, not price synchronization.

Option D is wrong because 'Trade agreement journal' records price agreements but does not automatically update existing purchase orders.

Practice this question →
82
MCQhard

You are a system administrator for a food and beverage company using Dynamics 365 Supply Chain Management. The company produces perishable goods with expiration dates. They currently track inventory by batch, but they need to enforce a first-expiry-first-out (FEFO) picking strategy in their warehouse. When a sales order is picked, the system should automatically suggest the batch with the earliest expiration date. Additionally, if a batch has expired, the system should prevent it from being picked and should quarantine it. What configuration steps should you perform to meet these requirements?

A.Use batch disposition codes and set the reservation hierarchy to batch-above-location.
B.Set up product flavors to categorize batches by expiration date.
C.Create quality orders to inspect batches before picking.
D.Use batch disposition codes and set the reservation hierarchy to location-above-batch.
AnswerA

Batch disposition codes can block expired batches; reservation hierarchy batch-above-location enables FEFO picking.

Why this answer

Batch disposition codes are used to control inventory availability by blocking expired batches, and setting the reservation hierarchy to batch-above-location ensures that the system reserves batches with the earliest expiration date first (FEFO). Option D is incorrect because location-above-batch prioritizes location over batch, which does not enforce FEFO.

Exam trap

Candidates often confuse the reservation hierarchy direction. Batch-above-location is required for FEFO, not location-above-batch.

Practice this question →
83
MCQhard

A company uses Dynamics 365 Supply Chain Management and wants to implement a process where suppliers can monitor inventory levels and automatically replenish stock. Which feature should they enable?

A.Consignment inventory
B.Purchase requisition
C.Blanket purchase orders
D.Vendor-managed inventory (VMI)
AnswerD

Vendor-managed inventory (VMI) allows the supplier to monitor inventory levels and automatically replenish stock, meeting the requirement.

Why this answer

Vendor-managed inventory (VMI) allows suppliers to monitor inventory levels and automatically replenish stock, which matches the requirement. Option A (Consignment inventory) is incorrect because it is about ownership, not supplier-managed replenishment. Option B (Purchase requisition) is an internal request, not supplier-facing.

Option C (Blanket purchase orders) are long-term agreements but do not enable automatic replenishment by the supplier.

Practice this question →
84
MCQmedium

A company uses Dynamics 365 Supply Chain Management and wants to track the environmental impact of their products, such as carbon footprint, across the supply chain. Which capability should they use?

A.Demand planning
B.Sustainability
C.Product feedback
D.Asset management
AnswerB

The Sustainability module enables tracking of environmental metrics like carbon footprint.

Why this answer

The Sustainability module in Dynamics 365 Supply Chain Management provides carbon footprint tracking and sustainability analytics. Option A (Demand planning) is for supply chain planning, not sustainability. Option C (Product feedback) is for gathering product insights, not environmental impact.

Option D (Asset management) is for maintenance and lifecycle of assets, not sustainability tracking.

Practice this question →
85
MCQhard

A company uses Dynamics 365 Supply Chain Management with lot-controlled items. The quality team needs to block a specific lot from being used in production or sales until testing is complete. Which action should they take?

A.Create a non-conformance for the lot
B.Apply an inventory blocking to the lot
C.Move the lot to a quarantine zone
D.Create a quality order for the lot
AnswerB

Inventory blocking prevents the lot from being used in any transaction.

Why this answer

Inventory blocking allows you to block a lot for all transactions. Option A is wrong because non-conformance is for after a defect is found, not for blocking a lot during testing. Option C is wrong because quarantine zones are physical, not system-based.

Option D is wrong because quality orders are for testing, but they do not automatically block stock unless configured.

Practice this question →
86
Multi-Selecteasy

Which TWO inventory costing methods are available in Dynamics 365 Supply Chain Management?

Select 2 answers
A.LIFO
B.FIFO
C.Standard cost
D.Fixed cost
E.Weighted average
AnswersB, C

FIFO is a supported inventory costing method.

Why this answer

FIFO (First In, First Out) and Standard cost are both valid inventory costing methods in Dynamics 365 Supply Chain Management. FIFO assumes that the first items received are the first ones sold. Standard cost uses predetermined costs for items.

Weighted average is also a valid method, but the question limits to two choices.

Practice this question →
87
Multi-Selecteasy

A distribution company uses Dynamics 365 Supply Chain Management. Which TWO methods can be used to reduce the time taken to receive inbound shipments?

Select 2 answers
A.Use advanced shipping notice (ASN)
B.Use cross-docking
C.Use put-away clusters
D.Require quality orders for all receipts
E.Use mobile device receiving
AnswersA, E

ASN allows pre-registering shipments, reducing data entry time.

Why this answer

Advanced shipping notices (ASNs) allow the warehouse to receive shipment details before the physical arrival, enabling pre-receiving processing, staging, and labor planning. This reduces the time spent on data entry and verification during actual receipt, as the system can automatically match the ASN to the purchase order and initiate put-away workflows.

Exam trap

The trap here is that candidates confuse cross-docking (a post-receipt strategy) with a receiving-time reduction method, or they mistakenly think quality orders (which add inspection delays) could speed up receiving.

Practice this question →
88
MCQmedium

A company uses Dynamics 365 Supply Chain Management to manage its inventory across multiple warehouses. They want to transfer items between warehouses using a transfer order. Which process should they use to physically move the inventory?

A.Perform an inventory counting journal
B.Ship the transfer order from the source warehouse and receive it at the destination warehouse
C.Create an inventory adjustment journal
D.Post a production consumption journal
AnswerB

This physically moves inventory between warehouses.

Why this answer

To physically move inventory between warehouses in Dynamics 365 Supply Chain Management, the correct process is to ship the transfer order from the source warehouse and then receive it at the destination warehouse. This two-step process updates inventory quantities in both locations and creates the necessary inventory transactions to reflect the movement. Simply creating a transfer order without shipping and receiving does not change physical stock levels.

Exam trap

The trap here is that candidates may confuse a transfer order with an inventory adjustment journal, thinking that a simple quantity change can simulate a transfer, but only the ship-and-receive process correctly updates both warehouse balances and maintains audit trail integrity.

How to eliminate wrong answers

Option A is wrong because an inventory counting journal is used to reconcile physical counts with system quantities, not to move inventory between warehouses. Option C is wrong because an inventory adjustment journal changes the quantity or value of on-hand inventory without recording a transfer between locations; it would incorrectly adjust stock at one warehouse without reflecting the movement. Option D is wrong because a production consumption journal is used to record raw materials consumed during manufacturing, not to transfer finished goods or items between warehouses.

Practice this question →
89
MCQeasy

A retail company uses Dynamics 365 Supply Chain Management to manage inventory across multiple warehouses. They want to ensure that when a sales order is created for a product, the system automatically reserves inventory from the nearest warehouse. Which feature should be used?

A.Sales and marketing
B.Warehouse management
C.Available-to-promise (ATP)
D.Procurement and sourcing
AnswerC

Available-to-promise (ATP) calculates inventory availability across warehouses and can reserve from the nearest location, making it the correct feature.

Why this answer

Available-to-promise (ATP) is the correct feature because it calculates the quantity available to promise based on supply and demand across multiple warehouses, allowing the system to reserve inventory from the nearest warehouse. Option A (Sales and marketing) handles sales processes but not automated reservation. Option B (Warehouse management) manages warehouse operations but does not determine nearest warehouse reservation.

Option D (Procurement and sourcing) deals with purchasing, not sales order reservation.

Practice this question →
90
MCQmedium

A manufacturing company uses Dynamics 365 Supply Chain Management. The production planner notices that work orders are not being automatically generated when raw material inventory falls below the reorder point. Which configuration should the administrator verify?

A.Product configuration model
B.Production control parameters
C.Quality management configuration
D.Master planning setup
AnswerD

Correct: Master planning setup defines item coverage, reorder points, and planning methods that automatically generate planned work orders when inventory falls below the reorder point.

Why this answer

Master planning generates planned orders (including work orders) based on inventory levels and reorder points. Option A is incorrect because product configuration models are used for configurable products, not for automatic replenishment. Option B is incorrect because production control parameters manage how work orders are executed, not their automatic creation.

Option C is incorrect because quality management configuration handles inspections and nonconformance, not inventory replenishment.

Exam trap

Candidates often confuse production control parameters (execution) with master planning (generation). Remember: Master planning creates planned orders; production control executes them.

Practice this question →
91
MCQhard

Refer to the exhibit. A company has configured the product F0001 with the storage dimension group 'SiteWarehouse' and tracking dimension group 'BatchSerial'. What does this configuration allow?

A.Both batch and serial number tracking
B.Only batch number tracking
C.Only serial number tracking
D.Only warehouse and site tracking
AnswerA

'BatchSerial' enables both batch and serial tracking dimensions.

Why this answer

The tracking dimension group 'BatchSerial' enables both batch and serial number tracking. Option B is wrong because 'BatchSerial' includes both, not just batch. Option C is wrong because it enables both, not just serial.

Option D is wrong because the storage dimension group 'SiteWarehouse' only manages storage dimensions (site and warehouse), not tracking.

Practice this question →
92
Multi-Selectmedium

A company uses Dynamics 365 Supply Chain Management. Which TWO features are used to manage the quality of incoming materials?

Select 2 answers
A.Item sampling
B.Nonconformance management
C.Quarantine zones
D.Batch attributes
E.Quality orders
AnswersA, E

Item sampling defines the quantity of items to inspect from a shipment.

Why this answer

Item sampling is correct because it defines the quantity of items to be inspected from a shipment or production batch, enabling statistical quality control without testing every unit. Quality orders are correct because they are the primary mechanism in Dynamics 365 Supply Chain Management to document and execute inspection tasks, capturing test results against predefined quality specifications.

Exam trap

The trap here is that candidates confuse 'nonconformance management' (a corrective action tool) with 'quality orders' (a preventive inspection tool), or assume 'quarantine zones' are a quality management feature rather than an inventory location status.

Practice this question →
93
MCQhard

A company uses Dynamics 365 Supply Chain Management with the Process Manufacturing module. They produce a batch of paint and need to adjust the recipe based on the actual concentration of a raw material. What should they use?

A.Catch weight functionality.
B.Co-product and by-product planning.
C.Potency management.
D.Batch order for the paint.
AnswerC

Potency management adjusts formula quantities based on actual raw material strength.

Why this answer

Potency management (Option C) is correct because it allows adjusting the recipe based on the actual concentration of a raw material in process manufacturing. Option A is incorrect because catch weight functionality is for handling weight variance in items, not for adjusting recipes based on potency. Option B is incorrect because co-product and by-product planning is for managing multiple outputs from a single process.

Option D is incorrect because a batch order is the production order itself and does not provide recipe adjustment based on raw material potency.

Practice this question →
94
MCQmedium

A warehouse configuration shows a location directive for putaway of purchase orders. When a purchase order is received, the system tries to put items into a location with the BULK profile. However, some large items are being placed in PICK locations. What could be the cause?

A.The location directive does not have weight or volume constraints.
B.The location profile for BULK is not correctly assigned to locations.
C.The location directive is for sales orders, not purchase orders.
D.A separate directive for PICK locations overrides the BULK directive.
AnswerA

Correct. Without weight or volume constraints on the location directive, the system may place large items into PICK locations if they fit, even though the directive specifies BULK.

Why this answer

The location directive for putaway of purchase orders specifies the BULK profile, but without weight or volume constraints, the system does not prevent large items from being placed in PICK locations if they fit. The directive only guides the system to prefer BULK locations, but if no BULK location is available or the item doesn't meet constraints, it may fall back to other locations like PICK. Options B, C, and D are incorrect: Option B is wrong because the BULK profile assignment doesn't directly cause the issue; Option C is wrong because the directive is for purchase orders; Option D is wrong because there is no separate override directive for PICK locations.

Practice this question →
95
Multi-Selecthard

Which THREE are key capabilities of Dynamics 365 Supply Chain Management's warehouse management module?

Select 3 answers
A.Cycle counting
B.Product lifecycle management
C.Service agreements
D.Cluster picking
E.License plate tracking
AnswersA, D, E

Cycle counting is a warehouse management capability for inventory accuracy.

Why this answer

Cycle counting is a core capability of the Dynamics 365 Supply Chain Management warehouse management module, allowing for ongoing inventory accuracy checks without full physical inventory shutdowns. It supports scheduled and ad-hoc counts based on item criteria, locations, or zones, and integrates with warehouse operations to minimize disruption.

Exam trap

The trap here is that candidates may confuse product lifecycle management or service agreements as warehouse capabilities because they are part of the broader Dynamics 365 Supply Chain Management suite, but they are not features of the warehouse management module specifically.

Practice this question →
96
Multi-Selecthard

Which THREE components are part of the advanced warehouse management setup in Dynamics 365 Supply Chain Management?

Select 3 answers
A.Location directives
B.Location profiles
C.BOM versions
D.Work templates
E.Costing methods
AnswersA, B, D

Location directives guide where to put/pick inventory.

Why this answer

Options A, B, and D are correct. Location directives determine pick/put locations, location profiles define location characteristics, and work templates define work types and processes. Option C (BOM versions) is incorrect because BOM versions are used for product structure and manufacturing, not warehouse management.

Option E (Costing methods) is incorrect because costing methods are for inventory valuation and accounting.

Practice this question →
97
MCQmedium

A company uses Dynamics 365 Supply Chain Management and wants to use AI to predict potential supply chain disruptions, such as supplier delays, and suggest alternative actions. Which Copilot feature should they use?

A.Copilot in Supply Chain Management
B.Copilot for sales orders
C.Inventory optimization
D.Production scheduling
AnswerA

Copilot in SCM uses AI to predict disruptions and suggest actions.

Why this answer

Copilot in Supply Chain Management is specifically designed to leverage AI to predict potential supply chain disruptions, such as supplier delays, and suggest alternative actions. Option B (Copilot for sales orders) focuses on order management and does not provide disruption prediction. Option C (Inventory optimization) is aimed at optimizing inventory levels, not at predicting disruptions.

Option D (Production scheduling) deals with scheduling production runs, not supply chain risk prediction.

Practice this question →
98
MCQeasy

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

A.Master planning
B.Inventory management
C.Sales order processing
D.Procurement and sourcing
AnswerA

Master planning calculates demand and generates planned purchase orders to fulfill it.

Why this answer

Master planning calculates demand from sales orders and generates planned purchase orders to fulfill that demand. Option B is wrong because Inventory management tracks stock levels but does not automatically create purchase orders. Option C is wrong because Sales order processing handles sales orders, not purchase orders.

Option D is wrong because Procurement and sourcing processes purchase orders, but the automation of creation is done by master planning.

Practice this question →
99
MCQeasy

A distribution company uses Dynamics 365 Supply Chain Management. They want to improve picking efficiency in the warehouse by grouping multiple orders into a single pick run. Which warehouse process should they configure?

A.Wave processing
B.Batch balancing
C.Inbound shipment management
D.Load planning
AnswerA

Wave processing groups multiple outbound orders into a single wave for efficient picking.

Why this answer

Wave processing in Dynamics 365 Supply Chain Management is the correct warehouse process for grouping multiple orders into a single pick run. It allows you to create waves that consolidate multiple sales orders or transfer orders based on criteria such as warehouse, shipping method, or inventory availability, and then release them together for efficient picking.

Exam trap

The trap here is that candidates often confuse wave processing with load planning, but load planning focuses on transportation consolidation after picking, whereas wave processing is specifically for creating efficient pick runs within the warehouse.

How to eliminate wrong answers

Option B (Batch balancing) is wrong because it is used to balance production batch orders by splitting or merging batches based on attributes like potency or size, not for grouping orders for warehouse picking. Option C (Inbound shipment management) is wrong because it handles the receipt of goods from vendors or returns, focusing on inbound logistics rather than outbound order picking. Option D (Load planning) is wrong because it is designed for planning and consolidating shipments into loads for transportation, not for creating pick runs within a warehouse.

Practice this question →
100
MCQeasy

A company uses Dynamics 365 Supply Chain Management to manage its warehouse operations. They want to implement a strategy where workers are guided through tasks using scanning devices. Which feature should they configure?

A.Inventory management
B.Warehouse management
C.RF scanning
D.Warehouse mobile app
AnswerD

Correct. The Warehouse mobile app guides workers through tasks using scanning devices, enabling efficient warehouse operations.

Why this answer

The Warehouse mobile app provides guided task execution via scanning devices. Option A is incorrect because Inventory management is a broader module, not the specific feature for guided scanning. Option B is incorrect because Warehouse management is the overarching module, not the feature itself.

Option C is incorrect because RF scanning is a device type or capability within the app, but the feature that implements guided scanning is the Warehouse mobile app.

Practice this question →
101
Multi-Selectmedium

Which THREE are components of the Dynamics 365 Supply Chain Management demand-driven planning?

Select 3 answers
A.Product variants
B.Demand-driven reorder logic
C.Buffer levels
D.Cost accounting
E.Decoupling points
AnswersB, C, E

Demand-driven reorder logic is a component of demand-driven planning.

Why this answer

Options B, C, and E are correct. Demand-driven planning includes buffer levels (C), decoupling points (E), and demand-driven reorder logic (B). Option A is incorrect because product variants are a product configuration concept, not a component of demand-driven planning.

Option D is incorrect because cost accounting is a separate financial function, not part of demand-driven planning.

Practice this question →
102
MCQhard

A company uses Dynamics 365 Supply Chain Management with the Asset Management module. They need to create a maintenance plan that generates work orders based on meter readings (e.g., after every 100 operating hours). Which schedule type should they use?

A.Counter
B.Meter
C.Interval
D.Time
AnswerB

Meter-based schedules trigger work orders based on asset counter values.

Why this answer

'Meter' because this schedule type is specifically designed to trigger work orders based on counter readings such as operating hours. Option A (Counter) is incorrect because 'Counter' is not a schedule type in Asset Management; the correct term is 'Meter'. Option C (Interval) is incorrect because 'Interval' is a schedule type based on fixed elapsed time (e.g., every 7 days), not on meter readings.

Option D (Time) is incorrect because 'Time' is a schedule type that uses fixed time intervals, not meter readings.

Practice this question →
103
MCQhard

A company uses Dynamics 365 Supply Chain Management with advanced warehouse management. They notice that workers can confirm pick work even when the picked quantity is less than the expected quantity. They want to enforce that picking must be completed in full before confirmation. What should they configure?

A.Enable the 'Short picking' policy in the work template.
B.Set the 'Maximum pick quantity' to 100% on the location directive.
C.Configure the work confirmation policy to require full quantity.
D.Set the 'Confirm all lines' option to Yes on the mobile device menu item for picking.
AnswerD

This requires workers to complete all pick lines before confirmation, preventing short picks.

Why this answer

The 'Confirm all lines' option on the mobile device menu item forces full picking. 'Pick line' allows partial picks. 'Work confirmation policy' can block, but the specific setting is on the menu item.

Practice this question →
104
Multi-Selectmedium

A company uses Dynamics 365 Supply Chain Management for discrete manufacturing. They need to reduce waste by ensuring that raw materials are only issued to production orders when the production order is released to the floor. Which TWO actions should they take?

Select 2 answers
A.Set the production order status to 'Estimated'
B.Set the production order status to 'Released' before issuing materials
C.Create a quality order for raw materials
D.Use the 'Release to warehouse' process to generate picking work
E.Mark the production order as 'Ended'
AnswersB, D

Releasing the production order makes it available for material picking.

Why this answer

Setting the production order status to 'Released' triggers the material picking process, ensuring raw materials are issued only after the order is released to the floor. Option D is correct because the 'Release to warehouse' process generates picking work, which controls the physical issuance of materials. Option A is incorrect because 'Estimated' status does not initiate material issuing; it is a preliminary step.

Option C is incorrect because quality orders are for quality inspections, not material control. Option E is incorrect because 'Ended' status indicates completion, not material issuance.

Practice this question →
105
Multi-Selecthard

Which THREE modules are part of Dynamics 365 Supply Chain Management?

Select 3 answers
A.Master planning
B.Project management
C.Human resources
D.Transportation management
E.Warehouse management
AnswersA, D, E

Master planning is a core module for supply planning.

Why this answer

The three modules that are part of Dynamics 365 Supply Chain Management are Master planning (A), Transportation management (D), and Warehouse management (E). Option B (Project management) is part of Dynamics 365 Project Operations, not Supply Chain Management. Option C (Human resources) is part of Dynamics 365 Human Resources.

Practice this question →
106
MCQmedium

A company uses Dynamics 365 Supply Chain Management and wants to use AI to predict potential stockouts and suggest replenishment orders. Which feature should they enable?

A.Asset Management
B.Product Insights
C.Commerce module
D.Inventory Visibility Add-in with AI-powered demand forecasting
AnswerD

This add-in predicts stockouts and suggests replenishment.

Why this answer

The Inventory Visibility Add-in with AI capabilities provides demand forecasting and stockout predictions. The Product Insights feature is for product performance. The Asset Management module is for maintenance.

The Commerce module is for retail.

Practice this question →
107
MCQeasy

A company uses Dynamics 365 Supply Chain Management. They need to track a batch of raw material from receipt to finished goods shipment for quality compliance. Which supply chain process should they use?

A.Transfer orders
B.Consignment inventory
C.Inventory counting
D.Batch tracking
AnswerD

Batch tracking allows tracing raw materials through production to finished goods.

Why this answer

Batch tracking in Dynamics 365 Supply Chain Management enables the assignment of unique batch numbers to raw materials and finished goods, allowing the system to trace the material from receipt through production to shipment. This process is essential for quality compliance, as it supports recall management, expiry date monitoring, and detailed genealogy reports that track the entire lifecycle of a batch.

Exam trap

The trap here is that candidates confuse batch tracking with inventory counting or transfer orders, assuming any inventory movement process inherently provides traceability, but only batch tracking with the correct dimension group setup enables the full genealogy required for quality compliance.

How to eliminate wrong answers

Option A is wrong because transfer orders are used to move inventory between warehouses or locations, not to trace a batch through production and shipment. Option B is wrong because consignment inventory is a vendor-managed replenishment model where stock is owned by the supplier until consumed, and it does not provide batch-level traceability for quality compliance. Option C is wrong because inventory counting is a periodic or cycle counting process to verify stock levels and reconcile discrepancies, not a mechanism for tracking batch history or genealogy.

Practice this question →
108
MCQhard

Refer to the exhibit. A purchase order is confirmed but the lines are still open. What does this indicate?

A.The purchase order is approved but not yet received
B.The purchase order is pending approval
C.The purchase order is fully invoiced
D.The purchase order is fully received
AnswerA

Confirmed indicates approval; open lines indicate no receipt.

Why this answer

Confirmed means the purchase order is approved. Open lines indicate that no receipt has been posted yet, so the order is approved but not yet received. Therefore, option A is correct.

Option B is incorrect because the order is already confirmed (approved). Option C is incorrect because open lines mean the order is not yet invoiced. Option D is incorrect because open lines mean the order is not fully received.

Practice this question →
109
MCQeasy

A distribution company uses Dynamics 365 Supply Chain Management. They want to optimize warehouse picking routes to reduce travel time. Which module should they configure?

A.Transportation management
B.Warehouse management
C.Inventory management
D.Procurement and sourcing
AnswerB

Warehouse management includes wave processing and pick route optimization.

Why this answer

Warehouse management includes wave processing and route optimization for picking. Option A is wrong because transportation management is for inbound/outbound freight. Option C is wrong because inventory management handles stock levels, not picking routes.

Option D is wrong because procurement and sourcing is for purchasing.

Practice this question →
110
MCQeasy

A company uses Master Planning. The exhibit shows a plan configuration. What is the effect of setting UseForecast to 'Yes'?

A.It uses historical demand only
B.It ignores supply forecasts
C.It includes demand forecast in planned orders
D.It only affects safety stock calculations
AnswerC

UseForecast incorporates demand forecast into the plan.

Why this answer

UseForecast includes demand forecast in the plan. Option A is wrong because forecast is used for demand, not supply. Option B is wrong because forecast can be time-phased.

Option D is wrong because forecast is used in planning, not just safety stock.

Practice this question →
111
MCQhard

A distribution company uses Dynamics 365 Supply Chain Management to manage its warehouse operations. The warehouse manager reports that during peak hours, order picking is slow because pickers frequently travel long distances to retrieve items. The warehouse layout is fixed. Which feature should the company use to optimize picking routes without changing the physical layout?

A.Enable replenishment to ensure pick locations are fully stocked.
B.Use location directives to direct putaway to random locations.
C.Configure wave processing with location-based wave filters.
D.Implement cluster picking to group orders by customer.
AnswerC

Wave processing can group orders by location proximity, reducing travel time for pickers.

Why this answer

Wave processing with location-based wave filters allows the system to group work into waves based on criteria such as location, enabling the creation of efficient picking routes that minimize travel distance. This feature optimizes the sequence of picks within a wave without requiring any physical changes to the warehouse layout, directly addressing the manager's need to reduce travel time during peak hours.

Exam trap

The trap here is that candidates often confuse replenishment or cluster picking with route optimization, not realizing that wave processing with location-based filters directly controls the sequence and grouping of picks to minimize travel distance without altering the layout.

How to eliminate wrong answers

Option A is wrong because replenishment ensures pick locations are stocked but does not optimize the picking route or reduce travel distance; it addresses stock availability, not travel efficiency. Option B is wrong because directing putaway to random locations would increase travel distances by scattering inventory, making picking less efficient, not more. Option D is wrong because cluster picking groups orders by customer, which may consolidate shipments but does not inherently optimize the travel path within the warehouse; it focuses on order grouping rather than route optimization.

Practice this question →
112
Multi-Selecthard

Which THREE of the following are capabilities of the Dynamics 365 Supply Chain Management Copilot (AI) features?

Select 3 answers
A.Analyze supplier performance and recommend alternatives
B.Set up financial dimensions for cost centers
C.Optimize production schedules for efficiency
D.Automatically manage warehouse robot fleet
E.Generate demand forecasts using AI
AnswersA, C, E

Copilot provides supplier insights.

Why this answer

Copilot can analyze supplier performance (A), optimize production schedules (C), and generate demand forecasts (E). It does not directly manage warehouse robots (D) or set up financial dimensions (B). Correct: A, C, E.

Practice this question →
113
MCQeasy

A company uses Dynamics 365 Supply Chain Management. They need to track the cost of raw materials and finished goods accurately for financial reporting. Which module should they use?

A.Production control
B.Inventory management
C.Warehouse management
D.Cost management
AnswerD

Cost management handles cost tracking and valuation.

Why this answer

The Cost management module in Dynamics 365 Supply Chain Management is specifically designed to handle cost accounting, inventory valuation, and financial reporting for raw materials and finished goods. It provides features like standard cost, actual cost, and costing sheets to ensure accurate cost tracking and compliance with financial reporting standards.

Exam trap

The trap here is that candidates often confuse Inventory management with cost tracking, but Inventory management only tracks quantities and locations, not the financial valuation and cost analysis required for reporting.

How to eliminate wrong answers

Option A is wrong because Production control focuses on managing manufacturing orders, scheduling, and shop floor execution, not on cost tracking or financial reporting. Option B is wrong because Inventory management handles stock levels, movements, and replenishment, but does not provide the detailed cost accounting and valuation capabilities needed for financial reporting. Option C is wrong because Warehouse management is concerned with warehouse operations like receiving, picking, and shipping, and lacks the cost analysis and reporting features required for accurate cost tracking.

Practice this question →
114
MCQmedium

A manufacturing company is experiencing stockouts of a critical raw material despite maintaining high inventory levels. The procurement team places purchase orders based on historical usage, but demand has become erratic. Which action should the supply chain manager take to improve material availability without increasing inventory costs?

A.Increase safety stock percentages for all raw materials by 20%.
B.Set up a reorder point with dynamic safety stock calculation in Demand Planning.
C.Switch from purchase orders to blanket purchase agreements with the supplier.
D.Negotiate with the supplier to reduce lead time by 50%.
AnswerB

This allows the system to calculate safety stock based on demand variability and automatically trigger purchase orders when stock reaches the reorder point.

Why this answer

Dynamics 365 Supply Chain Management's Demand Planning module can calculate dynamic safety stock based on forecasted demand variability and service level targets. This allows the system to automatically adjust reorder points in response to erratic demand patterns, improving material availability without simply increasing inventory levels across the board.

Exam trap

The trap here is that candidates often assume increasing safety stock (Option A) is the only way to prevent stockouts, but the question specifically asks to improve availability without increasing inventory costs, which requires a dynamic, demand-driven approach rather than a static percentage increase.

How to eliminate wrong answers

Option A is wrong because increasing safety stock percentages for all raw materials by a fixed 20% would raise inventory costs across the board without targeting the specific erratic-demand material, and it does not use the dynamic calculation capabilities of Demand Planning. Option C is wrong because switching to blanket purchase agreements does not address the root cause of erratic demand; it only streamlines procurement processes and may lock the company into fixed quantities or pricing without improving demand-driven replenishment. Option D is wrong because negotiating a 50% lead time reduction may be unrealistic or costly, and even with shorter lead times, the reorder point still needs to be dynamically adjusted to handle demand variability—otherwise stockouts can still occur.

Practice this question →
115
MCQeasy

A distribution company uses Dynamics 365 Supply Chain Management and needs to set up a consignment inventory process where the supplier owns the inventory until it is consumed. Which inventory model should be used?

A.Purchase order
B.Return order
C.Non-stocked product
D.Consignment inventory
AnswerD

Consignment inventory allows supplier-owned stock at the customer site until consumption.

Why this answer

Consignment inventory is specifically designed for inventory owned by the supplier until use. Option A is for standard purchase orders. Option B is for customer returns.

Option C is for products that are not stocked.

Practice this question →
116
Multi-Selectmedium

Which TWO modules are part of Dynamics 365 Supply Chain Management?

Select 2 answers
A.Sales and marketing
B.Customer service
C.Expenses management
D.Procurement and sourcing
E.Inventory management
AnswersD, E

Procurement and sourcing is a core Supply Chain Management module.

Why this answer

Procurement and sourcing (Option D) and Inventory management (Option E) are core modules within Dynamics 365 Supply Chain Management. Procurement and sourcing handles the end-to-end purchasing process, from vendor selection to purchase order management, while Inventory management provides real-time visibility and control over stock levels, warehouse operations, and inventory valuation. These modules directly support the supply chain lifecycle, distinguishing them from customer-facing or expense-focused modules.

Exam trap

The trap here is that candidates confuse the Sales and marketing module (Option A) with the Sales and procurement features in Supply Chain Management, not realizing that Sales and marketing is a separate Dynamics 365 app, while Customer service (Option B) and Expenses management (Option C) are modules from other Dynamics 365 applications (Customer Service and Finance, respectively).

Practice this question →
117
MCQeasy

Refer to the exhibit. A warehouse manager wants to store high-volume items in location A-01-01. They notice the location type is 'Bulk'. What is the primary purpose of a Bulk location type?

A.To quarantine defective items
B.To stage outbound shipments
C.To store items for order picking
D.To store large quantities of items
AnswerD

Bulk is for high-volume storage.

Why this answer

Bulk location types are designed for storing large quantities of items, typically on pallets, and are used for high-volume storage. Option A is incorrect because quarantine locations are used for defective items. Option B is incorrect because staging locations are for temporary storage before outbound shipment.

Option C is incorrect because picking locations are for items that are picked for orders, not for bulk storage.

Practice this question →
118
MCQeasy

A company uses Dynamics 365 Supply Chain Management. They want to use the vendor collaboration feature to share purchase order information with suppliers. What is a prerequisite?

A.The vendor must be set up as a user with the 'Vendor' role in Microsoft Entra ID.
B.The vendor must have a procurement category assigned.
C.The vendor must be added to the procurement catalog.
D.A purchase agreement must be active for the vendor.
AnswerA

Vendor users need to be configured as external users with the Vendor role.

Why this answer

Vendor collaboration requires vendor users to be set up with the 'Vendor' security role (external) in Microsoft Entra ID to access the external vendor portal. Option B is incorrect because procurement categories are not a prerequisite; they are used for internal procurement management. Option C is incorrect because adding a vendor to the procurement catalog is not required; the catalog is for internal use.

Option D is incorrect because an active purchase agreement is not required for vendor collaboration; purchase agreements are separate contract documents.

Practice this question →
119
MCQmedium

A company uses Dynamics 365 Supply Chain Management and wants to provide real-time visibility of inventory levels across multiple warehouses to external partners. Which feature should they use?

A.Master planning
B.Inventory journals
C.Inventory Visibility add-in
D.Warehouse mobile app
AnswerC

Inventory Visibility provides real-time inventory data to external systems.

Why this answer

(Inventory Visibility add-in) is correct because it provides real-time, multi-warehouse inventory visibility to external partners via APIs. Option A (Master planning) is wrong because it is used for supply and demand planning, not real-time inventory sharing. Option B (Inventory journals) is wrong because they are used for internal inventory adjustments and transactions, not for external visibility.

Option D (Warehouse mobile app) is wrong because it is designed for warehouse workers to perform tasks, not for sharing inventory data with external partners.

Practice this question →
120
MCQmedium

A manufacturer uses Dynamics 365 Supply Chain Management and wants to implement a quality control process where incoming raw materials are inspected before being accepted into inventory. Which feature should they use to enforce that inspection?

A.Quality orders
B.Quarantine zones
C.Inventory journals
D.Nonconformance management
AnswerA

Quality orders can be automatically generated on receipt and require inspection before inventory is updated.

Why this answer

Quality orders in Dynamics 365 Supply Chain Management are the correct feature because they allow you to define inspection requirements for incoming raw materials, automatically blocking receipt or putaway until the inspection is completed and the order is approved. This enforces a mandatory quality check before inventory is accepted, directly meeting the requirement.

Exam trap

The trap here is that candidates often confuse 'quarantine zones' (a physical holding area) with the process of enforcing inspection, but quarantine zones are a consequence of failed inspection, not the mechanism to enforce it before acceptance.

How to eliminate wrong answers

Option B is wrong because quarantine zones are physical or logical storage areas used to isolate materials that have already failed inspection or are awaiting disposition, not a feature to enforce inspection before acceptance. Option C is wrong because inventory journals are used to manually adjust inventory quantities or move stock, not to enforce a quality control process or block receipt. Option D is wrong because nonconformance management is used to document and handle materials that have already been identified as noncompliant after inspection, not to enforce the initial inspection step.

Practice this question →
121
MCQmedium

A manufacturer uses Dynamics 365 Supply Chain Management. They produce items using a bill of materials (BOM) and want to automatically consume raw materials when production is reported as finished. Which production parameter should be set?

A.Auto report as finished
B.Auto BOM consumption
C.Auto start production order
D.Auto generate picking work
AnswerB

This parameter automatically consumes raw materials upon reporting as finished.

Why this answer

The 'Auto BOM consumption' parameter determines whether materials are automatically consumed when a production order is reported as finished. Option A is wrong because 'Auto report as finished' controls automatic reporting, not material consumption. Option C is wrong because 'Auto start production order' controls starting, not consumption.

Option D is wrong because 'Auto generate picking work' creates pick work, not consumption.

Practice this question →
122
MCQeasy

Refer to the exhibit. A warehouse location is configured with LocationProfileId 'BULK' and MaxPalletWeight 1000. What is the primary purpose of this configuration?

A.To specify the warehouse zone
B.To define the picking route sequence
C.To define physical constraints like weight capacity
D.To restrict the types of items stored
AnswerC

Location profiles set physical constraints such as max weight.

Why this answer

The location profile defines the physical characteristics and constraints of a warehouse location, such as maximum weight capacity (MaxPalletWeight). Option A is wrong because location profiles do not specify warehouse zones; zones are defined separately. Option B is wrong because location profiles are not used for defining picking route sequences; those are determined by wave templates and work templates.

Option D is wrong because while location profiles can influence item restrictions indirectly (e.g., through storage constraints), their primary purpose is to define physical attributes like weight and dimensions, not to directly restrict item types.

Practice this question →
123
MCQmedium

A manufacturer needs to define the sequence of operations and work centers for producing a finished good. Which supply chain entity should they configure?

A.Route
B.Resource
C.Production order
D.Bill of materials
AnswerA

A route defines the sequence of operations and work centers.

Why this answer

In Dynamics 365 Supply Chain Management, a Route defines the sequence of operations and the specific work centers (or resources) required to produce a finished good. It links each operation step to a resource or resource group, establishing the production flow and timing. Configuring a Route is the correct entity for specifying the order of operations and work centers, as it directly models the manufacturing process.

Exam trap

The trap here is that candidates often confuse the Bill of materials (which lists components) with the Route (which lists operations), leading them to select the Bill of materials when the question asks about the sequence of operations and work centers.

How to eliminate wrong answers

Option B (Resource) is wrong because a Resource represents a machine, tool, or worker that performs an operation, but it does not define the sequence or order of operations. Option C (Production order) is wrong because a Production order is an actual order to manufacture a specific quantity of an item, which references a Route but does not itself define the sequence of operations. Option D (Bill of materials) is wrong because a Bill of materials lists the components and raw materials needed for production, not the operations or work centers.

Practice this question →
124
MCQeasy

A company uses Dynamics 365 Supply Chain Management to manage its warehouse operations. They want to implement a strategy where workers are directed to pick items from specific locations based on the shortest travel distance. Which warehouse management feature should they use?

A.Mobile device menu items
B.Location directives
C.Work templates
D.Wave execution
AnswerD

Wave execution processes multiple orders together to optimize picking routes, including shortest travel distance.

Why this answer

Wave execution optimizes the picking process by grouping multiple orders and directing workers to pick items from locations that minimize travel distance, often using shortest-path algorithms. Option A is incorrect because Mobile device menu items define what tasks workers see on their devices but do not inherently optimize travel distance. Option B is incorrect because Location directives determine the specific locations from which items should be picked, but they do not optimize travel distance across orders.

Option C is incorrect because Work templates define the structure and steps of work, not the optimization of travel distance.

Practice this question →
125
MCQmedium

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?

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.
AnswerA

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.

Why this answer

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.

Practice this question →
126
MCQhard

You are the supply chain manager for a global pharmaceutical company that manufactures and distributes temperature-sensitive vaccines. The company uses Dynamics 365 Supply Chain Management with warehouse management and production control. The vaccines must be stored at 2-8°C throughout the supply chain. You need to design a process that ensures: (1) inbound vaccine shipments are inspected and temperature-logged before acceptance, (2) vaccines are immediately moved to a cold storage location upon receipt, (3) picking for outbound orders always prioritizes vaccines with the nearest expiration date (FEFO), and (4) any temperature excursion during storage automatically triggers a quarantine and quality order. Which set of configurations should you implement?

A.Configure a quality association for inbound inspections, location directives for cold storage, set reservation hierarchy to FEFO, and use temperature monitoring with threshold alerts linked to quality orders.
B.Set up inbound inspection via a quality order, use a work template for put-away, enable FEFO reservation, and rely on periodic manual temperature checks.
C.Set up a mobile device menu for receipt, use a wave template for put-away, enable FIFO reservation, and use quality orders manually.
D.Use a quality order for inbound, create a location directive for cold storage, set reservation hierarchy to FIFO, and enable batch attributes.
AnswerA

This covers all requirements: inspection, cold storage, FEFO, and temperature excursion quarantine.

Why this answer

Quality associations automate inbound inspection upon receipt; location directives with temperature zone settings ensure immediate putaway to cold storage; reservation hierarchy enforces FEFO for outbound picking; and temperature monitoring with threshold alerts automatically triggers quality orders for quarantine. Option B is incorrect because periodic manual temperature checks do not provide automatic quarantine triggers, and quality orders alone lack automated association for inbound inspection. Option C uses FIFO instead of FEFO and relies on manual quality orders, missing automation.

Option D uses FIFO and does not include temperature monitoring for automatic quarantine triggers.

Practice this question →
127
MCQmedium

A manufacturing company uses Dynamics 365 Supply Chain Management. They notice that the planned production orders are not considering the latest demand changes. What should you check first?

A.Warehouse location directives
B.Inventory on-hand report
C.Quality order settings
D.Master planning execution
AnswerD

Master planning execution recalculates requirements and updates planned production orders to reflect latest demand changes.

Why this answer

Master planning must be run to recalculate planned production orders based on the latest demand changes. Option D is correct. Option A (Warehouse location directives) controls where items are stored/picked, not planning.

Option B (Inventory on-hand report) shows current stock but does not update planned orders. Option C (Quality order settings) manages quality inspections, not planning.

Practice this question →
128
Multi-Selectmedium

Which THREE processes are supported by the Production control module in Dynamics 365 Supply Chain Management?

Select 3 answers
A.Process manufacturing
B.Discrete manufacturing
C.Project manufacturing
D.Lean manufacturing
E.Service management
AnswersA, B, D

Process manufacturing is supported in Production control.

Why this answer

Options A, B, and D are correct. Discrete manufacturing, process manufacturing, and lean manufacturing are all supported production types. Option C is wrong because Project manufacturing is handled by Dynamics 365 Project Operations.

Option E is wrong because Service management is part of Dynamics 365 Customer Service or Project Operations.

Practice this question →
129
MCQhard

A company uses Dynamics 365 Supply Chain Management with dual-write to Dynamics 365 Sales. They are experiencing issues where changes to product pricing in Supply Chain Management are not reflecting in Sales. What should they troubleshoot first?

A.Check the currency exchange rates in both systems
B.Review the Power Platform admin center for data integration errors
C.Verify that the dual-write table mappings include the pricing entity
D.Ensure that the pricing engine is set to real-time updates
AnswerC

Dual-write relies on table mappings; if the pricing mapping is missing or inactive, changes won't sync.

Why this answer

Dual-write relies on table mappings to synchronize data between Dynamics 365 applications. If the mapping for the pricing entity is not included or is inactive, changes to pricing in Supply Chain Management will not be reflected in Sales. Option A is incorrect because currency exchange rates are unrelated to the synchronization of pricing data; they affect currency conversion, not data sync.

Option B is incorrect because while the Power Platform admin center can show data integration errors, the first step is to verify that the necessary table mappings exist. Option D is incorrect because the pricing engine's real-time setting is not related to dual-write synchronization; the issue is about the mapping configuration.

Practice this question →
130
Multi-Selecteasy

Which TWO planning methods are available in Dynamics 365 Supply Chain Management's master planning?

Select 2 answers
A.Capacity requirements planning (CRP)
B.Enterprise resource planning (ERP)
C.Production planning
D.Material requirements planning (MRP)
E.Distribution requirements planning (DRP)
AnswersD, E

MRP calculates material needs for production.

Why this answer

Options D and E are correct because master planning in Dynamics 365 Supply Chain Management supports both material requirements planning (MRP) and distribution requirements planning (DRP). Option A is incorrect because capacity requirements planning (CRP) is a related but separate process from master planning. Option B is incorrect because enterprise resource planning (ERP) is the system category, not a planning method.

Option C is incorrect because production planning is a broader term that encompasses various planning methods, but it is not a specific planning method available in master planning.

Practice this question →
131
Multi-Selecthard

Which THREE of the following are capabilities of the Warehouse management module in Dynamics 365 Supply Chain Management?

Select 3 answers
A.License plate tracking
B.Route planning for inbound and outbound shipments
C.Inbound and outbound operation management
D.Demand forecasting using machine learning
E.Wave processing for picking and packing
AnswersA, C, E

License plates are used in warehouse management for tracking.

Why this answer

Options A, C, and E are correct. Warehouse management includes license plate tracking, inbound and outbound operation management, and wave processing for picking and packing. Option B is wrong because route planning is part of Transportation management.

Option D is wrong because demand forecasting is part of Master planning or separate features.

Exam trap

Candidates often confuse the boundaries between Warehouse management and Transportation management. Route planning is a Transportation management function, not a warehouse capability.

Practice this question →
132
MCQhard

A company uses Dynamics 365 Supply Chain Management with advanced warehouse management. They experience slow performance when running the 'Release to warehouse' batch job for sales orders. The warehouse manager suspects that the location directives are inefficient. Which approach should they take to improve performance?

A.Disable location directives
B.Analyze and optimize location directive queries and indexes
C.Increase the number of batch servers
D.Reduce the number of wave steps
AnswerB

Analyzing and optimizing location directive queries and indexes can directly address performance bottlenecks by improving query efficiency and reducing execution time.

Why this answer

Analyzing and optimizing location directive queries and indexes can identify performance bottlenecks such as missing indexes or inefficient query logic, which directly improves the 'Release to warehouse' batch job performance. Option A is incorrect because disabling location directives would break the putaway process entirely. Option C is incorrect because adding more batch servers adds capacity but does not address inefficient location directives.

Option D is incorrect because reducing wave steps may affect warehouse functionality but does not address the root cause of slow location directive processing.

Practice this question →
133
MCQhard

A company that produces perishable goods needs to enforce strict lot control and first-expiry-first-out (FEFO) picking. Which configuration in Dynamics 365 Supply Chain Management is essential?

A.Lot control and FEFO picking criteria
B.Product dimension groups
C.Batch attributes
D.Serial number control
AnswerA

Lot control enables batch tracking and FEFO ensures oldest expiry is picked first.

Why this answer

Enforcing strict lot control and first-expiry-first-out (FEFO) picking criteria in Dynamics 365 Supply Chain Management requires enabling lot control on the product (via tracking dimension groups) and then setting the FEFO picking criteria on the warehouse location directive. This configuration ensures that items with the nearest expiry date are picked first, which is critical for perishable goods to minimize waste and comply with regulatory requirements.

Exam trap

The trap here is that candidates often confuse 'batch attributes' (Option C) with expiry date handling, but batch attributes are an optional filter and do not enforce the FEFO picking sequence; the core requirement is the combination of lot control and FEFO picking criteria in the location directive.

How to eliminate wrong answers

Option B (Product dimension groups) is wrong because product dimension groups define configuration, size, color, and style variants, not lot or expiry tracking; they do not enforce FEFO picking. Option C (Batch attributes) is wrong because batch attributes are used to capture and filter on qualitative or quantitative characteristics of a batch (e.g., potency, taste), but they do not by themselves enforce FEFO picking order; FEFO requires the expiry date to be used as the primary sorting criterion. Option D (Serial number control) is wrong because serial number control tracks individual units for warranty or traceability but does not consider expiry dates or enforce FEFO; it is typically used for high-value or regulated items, not for perishable goods requiring expiry-based picking.

Practice this question →
134
MCQmedium

A company uses Dynamics 365 Supply Chain Management and wants to optimize warehouse operations by grouping similar items together to reduce travel time for pickers. Which configuration should they use?

A.Warehouse zone groups
B.Product filter codes
C.Item coverage group
D.Batch attributes
AnswerA

Correct. Warehouse zone groups enable efficient grouping of similar items into zones, minimizing travel time.

Why this answer

Warehouse zone groups allow items to be grouped together in zones based on characteristics like size, velocity, or storage requirements, which reduces travel time for pickers. Option A is correct. Option B (Product filter codes) is used for filtering products in processes like picking or receiving, not for warehouse layout optimization.

Option C (Item coverage group) is used for planning replenishment and safety stock. Option D (Batch attributes) are used for batch tracking and quality management.

Practice this question →
135
MCQhard

A company uses Dynamics 365 Supply Chain Management. They need to calculate a costed bill of materials (BOM) that includes manufacturing overhead. Which costing method should they use?

A.Moving Average
B.Standard Cost
C.FIFO
D.BOM Calculation with Costing Sheet
AnswerD

BOM calculations with costing sheet can include manufacturing overhead.

Why this answer

D is correct because the BOM Calculation with Costing Sheet is specifically designed to calculate a costed bill of materials that includes manufacturing overhead. In Dynamics 365 Supply Chain Management, the costing sheet allows you to define overhead rates, such as machine or labor overhead, and automatically apply them during BOM calculation, ensuring the total cost reflects both material and overhead components.

Exam trap

The trap here is that candidates confuse inventory costing methods (Moving Average, Standard Cost, FIFO) with the BOM calculation process, assuming any costing method can calculate a costed BOM with overhead, when only the BOM Calculation with Costing Sheet is designed for that purpose.

How to eliminate wrong answers

Option A is wrong because Moving Average is a perpetual inventory costing method that calculates the average cost of items after each receipt, not a tool for calculating a costed BOM with overhead. Option B is wrong because Standard Cost is a costing method used for inventory valuation and variance analysis, not a calculation process that includes manufacturing overhead in a BOM. Option C is wrong because FIFO (First In, First Out) is an inventory valuation method that assumes oldest stock is sold first, and it does not support the inclusion of manufacturing overhead in a BOM calculation.

Practice this question →
136
Multi-Selecthard

Which THREE components are essential for setting up a production process in Dynamics 365 Supply Chain Management?

Select 3 answers
A.Bill of materials (BOM)
B.Route
C.Production order
D.Purchase order
E.Sales order
AnswersA, B, C

BOM defines the components needed for production.

Why this answer

A is correct because the Bill of Materials (BOM) defines the list of components and raw materials required to produce a finished product. In Dynamics 365 Supply Chain Management, the BOM is a foundational data entity that specifies quantities, items, and their relationships, enabling the system to calculate material requirements and costs for production orders.

Exam trap

The trap here is that candidates may confuse transactional documents like purchase orders and sales orders with the master data components (BOM and route) that are essential for defining the production process, leading them to select options that are related to supply chain but not to production setup.

Practice this question →
137
Multi-Selectmedium

Which TWO actions can be performed using the Dynamics 365 Supply Chain Management mobile warehouse app?

Select 2 answers
A.Receive purchase orders
B.Create sales orders
C.Generate advanced shipping notices
D.Perform cycle counting
E.Run master planning
AnswersA, D

Receiving is a common mobile app activity.

Why this answer

The Dynamics 365 Supply Chain Management mobile warehouse app supports receiving purchase orders (option A) and performing cycle counting (option D). Option B (create sales orders) is typically done in the web client, option C (generate advanced shipping notices) is not a mobile app feature, and option E (run master planning) is a back-office function not available in the mobile app.

Practice this question →
138
MCQhard

A company uses Dynamics 365 Supply Chain Management. They need to support a make-to-order scenario where each order has unique engineering specifications. Which configuration should they use?

A.Engineering Change Management
B.Product Configuration
C.Sales Orders
D.Batch Orders
AnswerA

Engineering Change Management handles unique specifications and versions.

Why this answer

Engineering Change Management in Dynamics 365 Supply Chain Management is designed to manage product versions, revisions, and engineering specifications, making it suitable for make-to-order scenarios with unique specifications per order. Option B (Product Configuration) is intended for standard configurable products with predefined options, not for completely unique engineering specs. Option C (Batch Orders) is used in process manufacturing for batch-based production.

Option D (Sales Orders) is a transaction record and does not handle configuration or engineering details.

Practice this question →
139
MCQmedium

A company uses Dynamics 365 Supply Chain Management. They want to improve warehouse efficiency by grouping multiple orders into a single picking wave. Which feature should they use?

A.Wave processing
B.Load planning
C.Cluster picking
D.Cycle counting
AnswerA

Wave processing groups orders and creates efficient picking work.

Why this answer

Wave processing groups orders and creates efficient picking work. Option B is wrong because Load planning is for transportation, not picking. Option C is wrong because Cluster picking is a specific method but wave processing is the broader feature.

Option D is wrong because Cycle counting is for inventory accuracy, not order grouping.

Practice this question →
140
MCQeasy

A company wants to use Dynamics 365 Supply Chain Management to manage product versions and engineering changes. Which module should they use?

A.Inventory management
B.Engineering Change Management
C.Product information management
D.Procurement and sourcing
AnswerB

Engineering Change Management manages product versions and engineering changes.

Why this answer

Engineering Change Management is the correct module because it is specifically designed to manage product versions, engineering changes, and the associated approval workflows in Dynamics 365 Supply Chain Management. It provides controlled revision control, bill of materials (BOM) versioning, and route versioning, enabling companies to track and implement changes from engineering through production.

Exam trap

The trap here is that candidates often confuse Product information management (which handles static product data) with Engineering Change Management (which handles dynamic versioning and change control), leading them to select option C instead of B.

How to eliminate wrong answers

Option A is wrong because Inventory management focuses on stock levels, warehouse operations, and inventory transactions, not on managing product versions or engineering change processes. Option C is wrong because Product information management handles the creation and maintenance of product master data, such as item numbers and attributes, but does not include the version control, change orders, or approval workflows required for engineering changes. Option D is wrong because Procurement and sourcing deals with purchasing processes, vendor management, and sourcing strategies, and has no capability for engineering change management or product versioning.

Practice this question →
141
MCQhard

A product is configured as shown in the exhibit. Which statement about the product is correct?

A.The product is in development lifecycle state
B.The product is not tracked by batch number
C.The product can be stored in different locations within a warehouse
D.The product uses constraint-based configuration
AnswerD

VariantConfigurationTechnology is 'ConstraintBased', indicating constraint-based configuration.

Why this answer

ConstraintBased variant configuration technology is used for complex products with many variants defined by constraints. Option A is wrong because product lifecycle state is 'Active', not 'In development'. Option B is wrong because the tracking dimension group includes BatchNumber, which implies batch tracking.

Option C is wrong because StorageDimensionGroup 'SiteWarehouse' means only site and warehouse dimensions, not location.

Practice this question →
142
MCQhard

A company uses Dynamics 365 Supply Chain Management and wants to improve demand forecasting by including external data such as weather patterns and economic indicators. Which feature should be used?

A.Sales and marketing forecasting
B.Master planning
C.Demand forecasting with Azure Machine Learning
D.Supply planning
AnswerC

Demand forecasting can integrate external datasets like weather and economic indicators.

Why this answer

Demand forecasting with Azure Machine Learning can ingest external data such as weather patterns and economic indicators to improve demand predictions. Option A is incorrect because Sales and marketing forecasting typically relies on historical sales data, not external factors. Option B is incorrect because Master planning uses internal demand forecasts, not external data.

Option D is incorrect because Supply planning focuses on procurement and inventory management, not forecasting with external data.

Practice this question →
143
Multi-Selectmedium

Which THREE components are part of the production control module in Dynamics 365 Supply Chain Management?

Select 3 answers
A.Bills of materials (BOMs)
B.Purchase orders
C.Routes
D.Sales orders
E.Production orders
AnswersA, C, E

BOMs define the materials needed for production.

Why this answer

Options A, C, and E are correct. Bills of materials (BOMs), routes, and production orders are core components of the production control module. Option B is incorrect because purchase orders belong to the procurement module.

Option D is incorrect because sales orders belong to the sales and marketing module.

Practice this question →
144
MCQmedium

You are reviewing a work template configuration in Dynamics 365 Supply Chain Management. Based on the exhibit, what will this work template do?

A.Create receiving work for purchase order lines.
B.Create put-away work for purchase order receipts.
C.Assign high priority to sales order picking work.
D.Create picking work for sales orders.
AnswerD

The work template is for sales orders and picking.

Why this answer

The work template has a work order type of 'Sales orders' and a work line type of 'Pick', which creates picking work for sales orders. Option D correctly identifies this. Option A is wrong because the work order type is sales orders, not purchase orders.

Option B is wrong because the line class is 'Sales', not 'Receiving'. Option C is wrong because the work priority is 10, which indicates lower priority (higher number), but the question asks what the template does, not the priority level.

Practice this question →
145
MCQhard

Refer to the exhibit. An administrator is reviewing an inventory value report configuration in Dynamics 365 Supply Chain Management. The report shows total quantities and costs for items that are not closed. A user complains that the report does not include items from site 2. What is the most likely cause?

A.The report uses InventTrans instead of InventSum.
B.The report is filtered to site 1 only.
C.The report does not include financial dimensions.
D.The report excludes closed inventory transactions.
AnswerB

The exhibit shows a filter on SiteId = 1, limiting the report to site 1.

Why this answer

The most likely cause is that the report is filtered to site 1 only, as indicated by the exhibit showing a filter on SiteId = 1. This restricts the report to items from site 1, excluding site 2. Option A is incorrect because the report uses InventSum, not InventTrans, but that is not the reason for missing site 2 items.

Option C is incorrect because financial dimensions are not relevant to the site filter. Option D is incorrect because the report includes items that are not closed (Closed = 0), so that does not exclude site 2 items; the site filter is the issue.

Practice this question →
146
MCQmedium

A company uses the master plan configuration shown in the exhibit. What is the effect of setting IncludeDemandForecast to true?

A.The master plan will calculate capacity requirements based on forecast
B.The master plan will only consider forecasted demand and ignore sales orders
C.The master plan will consider both forecasted demand and existing sales orders
D.The master plan will require manual input of forecast data
AnswerC

IncludeDemandForecast adds forecasted demand to the planning calculation.

Why this answer

When IncludeDemandForecast is set to true in the master plan configuration, the master planning engine in Dynamics 365 Supply Chain Management combines forecasted demand with existing sales orders to generate a comprehensive supply plan. This ensures that both confirmed customer orders and predicted future demand are considered, preventing under- or over-stocking.

Exam trap

The trap here is that candidates often assume 'IncludeDemandForecast' replaces sales orders with forecast, when in fact it adds forecast on top of existing sales orders, and the system uses forecast reduction to avoid duplication.

How to eliminate wrong answers

Option A is wrong because setting IncludeDemandForecast to true does not directly calculate capacity requirements; capacity planning is handled separately through resource and operation scheduling settings. Option B is wrong because the master plan does not ignore sales orders when IncludeDemandForecast is true; it includes both forecast and sales orders, not forecast alone. Option D is wrong because the master plan automatically uses forecast data from the demand forecast module without requiring manual input of forecast data at plan run time.

Practice this question →
147
MCQmedium

A company uses Dynamics 365 Supply Chain Management. They want to ensure that when a purchase order is received, the system automatically creates a quality order for inspection. Which configuration is required?

A.Set up a quality association for purchase order product receipt
B.Set inventory status to blocking
C.Configure nonconformance management
D.Define item sampling for the product
AnswerA

A quality association links a quality order creation to a process event like product receipt.

Why this answer

A quality association links a quality order creation to a process event like product receipt. Option B is wrong because setting inventory status to blocking does not trigger quality order creation; it is used for controlling inventory availability. Option C is wrong because nonconformance management handles failed inspections, not triggering them.

Option D is wrong because item sampling defines which items are tested, not the trigger.

Practice this question →
148
MCQhard

A company uses Dynamics 365 Supply Chain Management with lot tracking. They need to ensure that the system enforces the first-expiry-first-out (FEFO) principle during picking. What configuration is required?

A.Set the warehouse parameter 'Use batch expiration dates' to Yes.
B.Configure the reservation hierarchy to reserve by batch and then location.
C.Set the location directive strategy to 'FEFO' for the relevant work order type.
D.Define a batch attribute for expiration date and set it as active for picking.
AnswerC

FEFO strategy in location directives prioritizes expiration dates.

Why this answer

Location directives with a 'FEFO' strategy prioritize picking lots with earliest expiry dates. Option A is wrong because 'Use batch expiration dates' enables expiration date tracking, not FEFO enforcement during picking. Option B is wrong because reservation hierarchies affect reservation order, not picking order.

Option D is wrong because batch attributes are for quality or other custom attributes, not for enforcing FEFO.

Practice this question →
149
Drag & Dropmedium

Drag and drop the steps to configure a new inventory item in Dynamics 365 Supply Chain Management in the correct order.

Drag steps to the numbered slots on the right, or tap a step then tap a slot.

Steps
Order
1Step 1
2Step 2
3Step 3
4Step 4

Why this order

Inventory item setup requires creating a product, selecting type, entering details, and releasing.

Practice this question →
150
MCQeasy

A company uses Dynamics 365 Supply Chain Management to manage inventory. They want to use the Inventory turnover ratio to analyze how quickly inventory is sold. The finance team needs to see this ratio on a dashboard. You need to configure the system to calculate and display the inventory turnover ratio. You have the following options: A. Use the Inventory value report and calculate the ratio manually in Excel. B. Use the Power BI content pack for Dynamics 365 Supply Chain Management, which includes inventory turnover measures. C. Use the Inventory aging report to estimate turnover. D. Use the Warehouse Management module to track movements and calculate turnover. Which option should you choose?

A.Use the Inventory value report and calculate the ratio manually in Excel.
B.Use the Power BI content pack for Dynamics 365 Supply Chain Management, which includes inventory turnover measures.
C.Use the Inventory aging report to estimate turnover.
D.Use the Warehouse Management module to track movements and calculate turnover.
AnswerB

The Power BI content pack includes pre-built inventory turnover measures, making it the correct choice.

Why this answer

The Power BI content pack includes pre-built measures for inventory turnover. Option A is incorrect because it requires manual calculation. Option C is incorrect because the Inventory aging report is for analyzing the age of inventory, not turnover rate.

Option D is incorrect because the Warehouse Management module is focused on warehouse operations, not financial analytics.

Practice this question →
← PreviousPage 2 of 5 · 324 questions totalNext →

Ready to test yourself?

Try a timed practice session using only Describe Dynamics 365 Supply Chain Management questions.

Start 20-question session