This MB-920 practice question tests your understanding of describe the core capabilities of the finance and operations apps. 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 core capabilities of Dynamics 365 Supply Chain Management?
Budgeting
Why wrong: Budgeting is part of Finance.
Warehouse management
Warehouse management is a core capability.
Production control
Production control is a core capability for manufacturing.
Sales order processing
Why wrong: Sales order processing is part of Commerce or Sales.
Transportation management
Transportation management is a core capability.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Warehouse management
Warehouse management (B) is a core capability of Dynamics 365 Supply Chain Management, providing advanced inbound and outbound processes, wave execution, and location directives to optimize inventory movement and storage. It integrates with barcode scanning and mobile device workflows to enable real-time warehouse operations.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
Budgeting
Why it's wrong here
Budgeting is part of Finance.
Warehouse management
Why this is correct
Warehouse management is a core capability.
Related concept
Read the scenario before looking for a memorised answer.
Production control
Why this is correct
Production control is a core capability for manufacturing.
Related concept
Read the scenario before looking for a memorised answer.
Sales order processing
Why it's wrong here
Sales order processing is part of Commerce or Sales.
Transportation management
Why this is correct
Transportation management is a core capability.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
The trap here is that candidates confuse general business processes (like budgeting or sales order processing) with the specific, named core capabilities of Dynamics 365 Supply Chain Management, which are explicitly listed in the product documentation as warehouse, production, and transportation management.
Detailed technical explanation
Under the hood, Warehouse management uses location profiles, zone groups, and work templates to dynamically generate picking and replenishment work. A real-world scenario involves using wave processing to automatically create loads and shipments for outbound orders, which then triggers transportation management for carrier selection and freight rating.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
A media company stores terabytes of video archives that are accessed once a year for audit purposes. Moving these objects to a cold storage tier (Azure Archive, S3 Glacier, or Google Nearline) costs a fraction of hot storage. Questions like this test whether you understand storage tiers, access frequency tradeoffs, and retrieval latency requirements.
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FAQ
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..
The correct answer is: Warehouse management — Warehouse management (B) is a core capability of Dynamics 365 Supply Chain Management, providing advanced inbound and outbound processes, wave execution, and location directives to optimize inventory movement and storage. It integrates with barcode scanning and mobile device workflows to enable real-time warehouse operations.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 24, 2026
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