The answer is license plate tracking, cycle counting, and wave management. These three are key capabilities of the warehouse management module in Dynamics 365 Supply Chain Management because they directly support the core logistics functions of tracking inventory by unique identifiers, maintaining accuracy through ongoing counts, and efficiently grouping orders for picking and shipping. On the Microsoft Dynamics 365 Fundamentals ERP MB-920 exam, this question tests your understanding of the module’s operational features rather than its financial or planning aspects. A common trap is confusing basic inventory inquiries with true warehouse management capabilities, so remember that license plate tracking provides granular visibility, cycle counting enables continuous verification without shutdowns, and wave management automates the release of work. A helpful memory tip is to think of the acronym LCW—License plates, Cycle counting, and Waves—as the three pillars that keep a warehouse running smoothly.
MB-920 Describe Dynamics 365 Supply Chain Management Practice Question
This MB-920 practice question tests your understanding of describe dynamics 365 supply chain management. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. 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.
Which THREE are key capabilities of Dynamics 365 Supply Chain Management's warehouse management module?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Cycle counting
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.
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.
✓
Cycle counting
Why this is correct
Cycle counting is a warehouse management capability for inventory accuracy.
Related concept
Read the scenario before looking for a memorised answer.
✗
Product lifecycle management
Why it's wrong here
Product lifecycle management is a separate module, not part of warehouse management.
✗
Service agreements
Why it's wrong here
Service agreements are part of Service management, not warehouse management.
✓
Cluster picking
Why this is correct
Cluster picking is a warehouse management feature for efficient order picking.
Related concept
Read the scenario before looking for a memorised answer.
✓
License plate tracking
Why this is correct
License plate tracking is a warehouse management feature for traceability.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
Common exam trap: answer the scenario, not the keyword
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.
Detailed technical explanation
How to think about this question
License plate tracking (Option E) is fundamental to warehouse management, enabling GS1-128 barcode-based tracking of pallets, totes, or containers. Cluster picking (Option D) optimizes order fulfillment by grouping multiple orders into a single pick wave, reducing travel time and increasing throughput. Cycle counting (Option A) uses configurable counting thresholds and can trigger automatic adjustments based on warehouse mobile device scans.
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 cloud solutions architect for a retail company is evaluating services for a new workload. The correct answer here reflects best practice for the specific scenario described — not a general cloud recommendation. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Cloud exam questions reward reading the constraint carefully: the same technology can be right or wrong depending on the use case.
What to study next
Got this wrong? Here's your next step.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Describe Dynamics 365 Supply Chain Management — This question tests Describe Dynamics 365 Supply Chain Management — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Cycle counting — 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.
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.
About these practice questions
Courseiva creates original exam-style practice questions with explanations and wrong-answer analysis. It does not publish real exam questions, exam dumps, or protected exam content. Learn why practice questions differ from exam dumps →
These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. Which THREE of the following are capabilities of the Warehouse management module in Dynamics 365 Supply Chain Management?
hard
✓ 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
Why A: Options B, C, and D are correct. Warehouse management includes wave processing, license plate tracking, and inbound and outbound operation management. Option A is wrong because route planning is part of Transportation management. Option E is wrong because demand forecasting is part of Master planning or separate features.
Variation 2. Which TWO capabilities are provided by the Warehouse management module in Dynamics 365 Supply Chain Management?
hard
A.Production scheduling
✓ B.Wave processing
C.Route planning for delivery
D.Vendor collaboration
✓ E.Location directives
Why B: Options B and D are correct. Wave processing and location directives are key capabilities of warehouse management. Option A is wrong because route planning is in transportation management. Option C is wrong because vendor collaboration is a separate workspace. Option E is wrong because production scheduling is in production control.
Variation 3. Which TWO capabilities are provided by the Warehouse management module in Dynamics 365 Supply Chain Management?
hard
A.Route planning
✓ B.Wave processing
✓ C.Cluster picking
D.Quality orders
E.Production scheduling
Why B: Options A and D are correct. Wave processing allows grouping of loads for efficient picking and shipping. Cluster picking enables picking multiple orders simultaneously. Option B is wrong because Route planning is part of Transportation management. Option C is wrong because Quality orders are part of Quality management. Option E is wrong because Production scheduling is part of Production control.
Variation 4. Which THREE capabilities are provided by the Warehouse management module in Dynamics 365 Supply Chain Management?
hard
✓ A.Wave processing
B.Vendor collaboration portal
C.Route planning for outbound shipments
✓ D.Mobile device menu items
✓ E.Location directives
Why A: Option A is correct because wave processing is a core warehouse management feature. Option C is correct because location directives guide put-away and picking. Option E is correct because mobile device menus enable warehouse workers to perform tasks. Option B is wrong because route planning is part of Transportation management, not Warehouse management. Option D is wrong because vendor collaboration is a procurement feature, not warehouse management.
Last reviewed: Jun 24, 2026
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