MB-920 · topic practice

Describe Dynamics 365 Supply Chain Management practice questions

Practise Microsoft Dynamics 365 Fundamentals ERP MB-920 Describe Dynamics 365 Supply Chain Management practice questions — original exam-style scenarios with answer choices, explanations, and analysis of common mistakes.

Courseiva uses original exam-style practice questions designed for learning and revision. The goal is to understand the concepts, recognise exam patterns, and improve through explanations — not memorise copied exam dumps.

Reviewed byJohnson Ajibi· MSc IT Security
20 questionsDomain: Describe Dynamics 365 Supply Chain Management

What the exam tests

What to know about Describe Dynamics 365 Supply Chain Management

Describe Dynamics 365 Supply Chain Management questions test whether you can apply the concept in context, not just recognise a definition.

How the topic appears in realistic exam-style scenarios.

Which detail in the question changes the correct answer.

How to eliminate plausible but wrong options.

How to connect the question back to the wider exam objective.

Watch out for

Common Describe Dynamics 365 Supply Chain Management exam traps

  • Answering from memory before reading the full scenario.
  • Missing a constraint such as cost, availability, security, scope or command context.
  • Choosing a broad answer when the question asks for the most specific fix.
  • Ignoring why the wrong options are tempting.

Practice set

Describe Dynamics 365 Supply Chain Management questions

20 questions · select your answer, then reveal the explanation

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?

Question 2hardmultiple choice
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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 company uses Dynamics 365 Supply Chain Management to manage production orders. A production planner needs to schedule a rush order for a high-priority customer. The planner wants to see the impact on existing orders before committing. Which feature should the planner use?

A company uses Dynamics 365 Supply Chain Management to manage its supply chain. The procurement manager notices that purchase requisitions are not being converted to purchase orders automatically as expected. The workflow for purchase requisitions is set to auto-approve for amounts under $1,000. Upon investigation, the manager finds that a requisition for $950 is stuck in 'Draft' status. What is the most likely cause?

A company uses Dynamics 365 Supply Chain Management for warehouse operations. The warehouse manager wants to improve inventory accuracy and reduce the time spent on physical inventory counts. Which TWO actions should the manager take?

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

Refer to the exhibit. A batch job for inventory closing failed. The error indicates open inventory transactions for item A-100. What should the supply chain analyst do to resolve the issue and allow inventory closing to complete?

Exhibit

Refer to the exhibit.

```xml
<BatchJob>
  <Name>Inventory Closing</Name>
  <Status>Ended</Status>
  <StartDateTime>2025-02-15T22:00:00Z</StartDateTime>
  <EndDateTime>2025-02-16T04:30:00Z</EndDateTime>
  <RunBy>Admin</RunBy>
  <Recurrence>
    <Days>Every day</Days>
    <Time>22:00:00</Time>
  </Recurrence>
  <Log>
    <Message>Error: Inventory closing could not be completed because there are open inventory transactions for item A-100.</Message>
  </Log>
</BatchJob>
```
Question 8hardmultiple choice
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Contoso, Ltd. is a manufacturer of custom machinery. They use Dynamics 365 Supply Chain Management with production orders and subcontracting. A production order for a custom drilling machine requires a specialized heat treatment process that is performed by an external vendor. The heat treatment is set up as a route operation with a resource of type 'Vendor' and a subcontracting purchase agreement. The production order has been released and started, but the vendor reports that they have not received the purchase order for the heat treatment service. The production planner checks the purchase order and finds that it has not been created yet. The planner confirms that the purchase agreement is active and covers the required service. What is the most likely reason that the purchase order was not automatically generated?

A manufacturing company uses Dynamics 365 Supply Chain Management. They want to improve inventory accuracy and reduce stockouts. Which TWO actions should they take?

Contoso Ltd. is a global manufacturer of industrial pumps. They use Dynamics 365 Supply Chain Management with warehouse management (WMS) enabled. The warehouse in Chicago has been experiencing frequent inventory discrepancies during cycle counting. The discrepancies are mostly for items stored in bulk locations (floor storage) with high movement volume. The warehouse manager suspects that the issue is related to how inventory transactions are processed during outbound picking. When pickers confirm a pick, the system immediately reduces on-hand inventory. However, the physical movement to the staging area often happens later, sometimes after the system confirmation. This timing difference leads to phantom inventory. The manager wants to avoid a full physical inventory and implement a solution that aligns system and physical movements without major process changes. They consider four options:

A. Enable negative inventory adjustments for bulk locations. B. Use the 'Registration' process instead of picking confirmation for outbound orders. C. Implement a staging location and use the 'Stage for packing' functionality to defer inventory reduction until the item is physically staged. D. Disable cycle counting for bulk locations and rely on annual physical counts.

Which option should Contoso implement?

Drag and drop the steps to configure a sales order 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
5Step 5

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
5Step 5

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

Drag a concept onto its matching description — or click a concept then click the description.

Concepts
Matches

List of components needed to produce an item

Sequence of operations in production

Visual signal for just-in-time production

Control inventory movement and storage

Forecast customer demand to optimize inventory

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

Drag a concept onto its matching description — or click a concept then click the description.

Concepts
Matches

Customer pays a predetermined total amount

Customer pays based on actual time and costs

Customer pays cost plus a markup

Customer pays a recurring fixed fee

Invoices triggered by project milestones

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

A 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 company wants to automate the replenishment of raw materials to production lines based on actual consumption. Which capability in Dynamics 365 Supply Chain Management should they use?

A retailer uses Dynamics 365 Supply Chain Management to manage inventory across multiple stores. They need to ensure that store managers can only see inventory for their own store. What configuration should they use?

A manufacturer uses Dynamics 365 Supply Chain Management and wants to implement a vendor-managed inventory (VMI) process where suppliers monitor stock levels and trigger replenishment. Which feature should they enable?

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

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Frequently asked questions

What does the MB-920 exam test about Describe Dynamics 365 Supply Chain Management?
Describe Dynamics 365 Supply Chain Management questions test whether you can apply the concept in context, not just recognise a definition.
How should I use these practice questions?
Select your answer before revealing the explanation. Then read why each option is right or wrong — this active recall approach builds retention far faster than re-reading notes.
Can I practise just Describe Dynamics 365 Supply Chain Management questions in a focused session?
Yes — the session launcher on this page draws every question from the Describe Dynamics 365 Supply Chain Management domain. Use a 10-question session first to gauge your baseline, then move to 20 or 30 once the weak spots are clear.
Where can I practise other MB-920 topics?
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Are these real exam questions or dumps?
These are original practice questions written to test the same concepts the MB-920 exam covers. They are not copied from any real exam or dump site.