- A
Use the location dimension to record the vendor batch in the warehouse.
Why wrong: Location dimension does not provide traceability for returns.
- B
Enable serial number tracking on the item, and disable batch tracking.
Why wrong: Without batch tracking, vendor batch is not recorded.
- C
Enable both serial number and batch tracking on the item, and set the reservation hierarchy to use batch below serial.
Both dimensions are active, and reservation hierarchy ensures batch is captured with serial.
- D
Enable batch tracking on the item, and use the batch number as the only tracking dimension.
Why wrong: Batch alone cannot track individual units.
Question 904 of 966
Describe the core capabilities of the finance and operations apps →hardMultiple ChoiceObjective-mapped
Serial and Batch Tracking with Reservation Hierarchy
This MB-920 practice question tests your understanding of describe the core capabilities of the finance and operations apps. This is a configuration task: choose the command set that satisfies every stated requirement. Small differences — like 'secret' vs 'password' or 'transport input ssh' vs 'all' — change whether the answer is correct. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
You are the supply chain manager for a company using Dynamics 365 Supply Chain Management. The company produces high-value electronic components and needs to track each unit by serial number from receipt to sale. They also require that when a customer returns a defective unit, the system automatically identifies the original purchase order and vendor batch number for quality investigation. Currently, the system captures serial numbers at receipt and sale, but the link to the vendor batch is not maintained. You need to configure the product and tracking dimensions to ensure the vendor batch is recorded and associated with the serial number on the sales return. The company uses advanced warehouse management processes. What should you do?
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Enable both serial number and batch tracking on the item, and set the reservation hierarchy to use batch below serial.
Option C is correct because enabling both serial number and batch tracking on the item, and setting the reservation hierarchy to use batch below serial, ensures that each serialized unit is linked to its vendor batch at receipt. This hierarchy allows the system to reserve the serial number first, then the batch, so when a defective unit is returned, the system can trace back to the original purchase order and vendor batch number for quality investigation. This configuration is essential for high-value electronics where lot-level traceability is required, and it works seamlessly with advanced warehouse management processes.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Use the location dimension to record the vendor batch in the warehouse.
Why it's wrong here
Location dimension does not provide traceability for returns.
- ✗
Enable serial number tracking on the item, and disable batch tracking.
Why it's wrong here
Without batch tracking, vendor batch is not recorded.
- ✓
Enable both serial number and batch tracking on the item, and set the reservation hierarchy to use batch below serial.
Why this is correct
Both dimensions are active, and reservation hierarchy ensures batch is captured with serial.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Enable batch tracking on the item, and use the batch number as the only tracking dimension.
Why it's wrong here
Batch alone cannot track individual units.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often assume serial number tracking alone is sufficient for traceability, but without batch tracking and the correct reservation hierarchy, the system cannot automatically link a returned serial number to its vendor batch for quality investigation.
Detailed technical explanation
How to think about this question
In Dynamics 365 Supply Chain Management, the reservation hierarchy determines the order in which dimensions are reserved during warehouse processes. Setting batch below serial means the system reserves the serial number first, then the batch, ensuring each serialized unit is tied to a specific batch. This hierarchy is critical for reverse traceability: when a serialized unit is returned, the system can automatically retrieve the associated batch number, which links to the original purchase order and vendor batch for quality investigations. Under the hood, this configuration updates the InventDim table to store both serial and batch dimensions, enabling the system to enforce lot-level tracking even in advanced warehouse scenarios.
KKey Concepts to Remember
- Read the scenario before looking for a memorised answer.
- Find the constraint that changes the correct option.
- Eliminate answers that are true in general but not in this case.
TExam Day Tips
- Watch for words such as best, first, most likely and least administrative effort.
- Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A company's IT admin needs to give a contractor read-only access to production logs without sharing account credentials. Using role-based access control (RBAC) and temporary scoped permissions — not a permanent shared password — is the correct pattern. Questions like this test whether you can apply least-privilege access across cloud identity services.
What to study next
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FAQ
Questions learners often ask
What does this MB-920 question test?
Describe the core capabilities of the finance and operations apps — This question tests Describe the core capabilities of the finance and operations apps — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Enable both serial number and batch tracking on the item, and set the reservation hierarchy to use batch below serial. — Option C is correct because enabling both serial number and batch tracking on the item, and setting the reservation hierarchy to use batch below serial, ensures that each serialized unit is linked to its vendor batch at receipt. This hierarchy allows the system to reserve the serial number first, then the batch, so when a defective unit is returned, the system can trace back to the original purchase order and vendor batch number for quality investigation. This configuration is essential for high-value electronics where lot-level traceability is required, and it works seamlessly with advanced warehouse management processes.
What should I do if I get this MB-920 question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Last reviewed: Jul 4, 2026
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