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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.

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20 questionsDomain: Describe Dynamics 365 Supply Chain Management
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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

Question 1mediummultiple choice
Review the full routing breakdown →

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

Exhibit

Refer to the exhibit.

{
  "routeId": "ROUTE-MFG-001",
  "operationNumber": "10",
  "operationDescription": "Cutting",
  "resourceId": "SAW-01",
  "resourceGroupId": "METAL_SHOP",
  "runTimeHours": 0.5,
  "setupTimeHours": 0.25
}
Question 2easymultiple choice
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A company uses Dynamics 365 Supply Chain Management. They want to automate the creation of purchase orders when inventory for a specific item drops below a predefined level. Which parameter should be set on the item?

Question 3easymultiple choice
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A company uses Dynamics 365 Supply Chain Management to manage its warehouse operations. The warehouse manager wants to ensure that items are stored in specific locations based on their storage dimensions, such as 'HighVolume' and 'LowTurnover'. Which feature should be configured to automatically guide putaway operations?

Question 4hardmultiple choice
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Refer to the exhibit. A warehouse uses location directives for sales picking with FEFO strategy. Workers are unable to pick from bulk locations even though there is stock. What is the most likely cause?

Exhibit

{
  "Warehouse": "WH01",
  "LocationDirective": {
    "WorkOrderType": "Sales",
    "Sequence": 1,
    "Strategy": "FEFO",
    "Location": [
      {"LocationProfile": "BULK", "MinQty": 0, "MaxQty": 10000},
      {"LocationProfile": "PICK", "MinQty": 0, "MaxQty": 500}
    ]
  }
}
Question 5easymultiple choice
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Refer to the exhibit. A master plan has generated a planned purchase order for 100 units of item A0001 with status 'Approved'. What does the 'Approved' status indicate?

Exhibit

{
  "MasterPlan": {
    "PlanName": "PlanA",
    "CoverageGroup": "Default",
    "PlannedOrder": [
      {"ItemNumber": "A0001", "OrderType": "PurchaseOrder", "Quantity": 100, "Status": "Approved"}
    ]
  }
}
Question 6easymultiple choice
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A company wants to track inventory in multiple warehouses using serial numbers. In Dynamics 365 Supply Chain Management, what must be configured on the item to enable mandatory serial number tracking?

Question 7easymultiple choice
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A company creates a product with the configuration shown. They produce 10 units of this item. How many units of raw material RM-001 are required?

Exhibit

Refer to the exhibit.

```json
{
  "ProductInformationManagement": {
    "ProductType": "Item",
    "StorageDimensionGroup": "SiteWH",
    "TrackingDimensionGroup": "Serial",
    "InventoryModelGroup": "FIFO",
    "BOMVersion": {
      "BOMID": "BOM-001",
      "Quantity": 1,
      "Components": [
        {"ItemNumber": "RM-001", "Quantity": 2},
        {"ItemNumber": "RM-002", "Quantity": 1}
      ]
    }
  }
}
```
Question 8easymultiple choice
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A company uses Dynamics 365 Supply Chain Management. They need to track inventory by batch number and expiration date. How should they configure the product?

Question 9mediummultiple choice
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A manufacturing company uses Dynamics 365 Supply Chain Management. The production scheduler notices that a critical raw material is frequently out of stock, causing delays. The procurement team manually places purchase orders only when stock reaches zero. Which feature should be configured to automatically trigger purchase orders based on demand forecasts and current inventory levels?

Question 10mediummultiple choice
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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 11hardmultiple choice
Review the full routing breakdown →

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?

Question 12easymultiple choice
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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?

Question 13mediummultiple choice
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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?

Question 14hardmulti select
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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?

Question 15hardmulti select
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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?

Question 16hardmultiple choice
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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 17hardmultiple choice
Review the full routing breakdown →

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?

Question 18mediummulti select
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A manufacturing company uses Dynamics 365 Supply Chain Management. They want to improve inventory accuracy and reduce stockouts. Which TWO actions should they take?

Question 19hardmultiple choice
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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?

Question 20mediumdrag order
Read the full Describe Dynamics 365 Supply Chain Management explanation →

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
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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?
Use the topic links above to move to related areas, or go back to the MB-920 question bank to see all topics.
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.