Describe the core capabilities of the finance and operations apps →hardMultiple SelectObjective-mapped
Core Capabilities of Dynamics 365 Supply Chain Management
Which THREE capabilities are part of the core capabilities of Dynamics 365 Supply Chain Management?
Quick Answer
Inventory management is correct because it sits among the core, foundational capabilities of Dynamics 365 Supply Chain Management -- the functions that handle the physical and financial tracking of goods as they move through a company's operations, rather than being an optional or industry-specific add-on. Core capabilities in Supply Chain Management are the building blocks every implementation relies on regardless of industry, and inventory management belongs in that group because tracking stock levels, valuations, and movements is fundamental to running supply chain operations at all. It is useful to see how this fits alongside other core capabilities like warehouse management, which handles the operational side of moving goods -- receiving, putaway, picking, packing, and shipping -- often with barcode scanning and RFID support. Together, capabilities like these represent different layers of the same core supply chain process: tracking what you have, and physically managing how it moves. When a question asks which capabilities are core to Dynamics 365 Supply Chain Management, favor the functions that form the backbone of supply chain operations -- inventory, warehousing, and similar foundational processes -- over specialized or bolt-on features that only certain organizations would use, since core capabilities are defined by being broadly applicable rather than niche.
⚠ Common exam trap
It's easy for candidates to confuse sales order management as a supply chain capability, but it is primarily a sales and commerce function, while payroll processing is mistakenly associated with finance and operations apps despite being a separate HR module.
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
✓
Warehouse management
Warehouse management (A) is a core capability of Dynamics 365 Supply Chain Management, providing advanced functionality for managing warehouse operations including receiving, putaway, picking, packing, and shipping. It integrates with barcode scanning and RFID to optimize inventory accuracy and labor efficiency.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Warehouse management
Why this is correct
Warehouse management is a core capability.
- ✓
Transportation management
Why this is correct
Transportation management is a core capability.
- ✗
Payroll processing
Why it's wrong here
Payroll processing is in Dynamics 365 Human Resources.
- ✗
Sales order management
Why it's wrong here
Sales order management is typically in Dynamics 365 Sales.
- ✓
Inventory management
Why this is correct
Inventory management is a core capability.
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Same concept, more angles
4 more ways this is tested on MB-920
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 are core capabilities of Dynamics 365 Supply Chain Management?
medium- A.Budgeting
- ✓ B.Warehouse management
- ✓ C.Production control
- D.Sales order processing
- ✓ E.Transportation management
Why B: 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.
Variation 2. Which TWO capabilities are core to Dynamics 365 Supply Chain Management?
medium- A.Project cost management
- ✓ B.Warehouse management
- C.Omnichannel order management
- D.Financial reporting
- ✓ E.Transportation management
Why B: Warehouse management (B) is a core capability of Dynamics 365 Supply Chain Management, providing advanced inbound and outbound warehouse operations, wave processing, and location directives. Transportation management (E) is also core, offering freight rating, routing, and shipment consolidation to optimize logistics. Together, they directly support the end-to-end supply chain processes within the application.
Variation 3. Which TWO of the following are capabilities of Dynamics 365 Supply Chain Management?
medium- A.Project cost management
- ✓ B.Warehouse management
- ✓ C.Production control
- D.Budget control
- E.Omni-channel commerce
Why B: Warehouse management (B) is a core capability of Dynamics 365 Supply Chain Management, enabling advanced inbound and outbound processes, wave management, and mobile device-driven warehouse operations. Production control (C) is also a core capability, providing functionality for production orders, batch orders, and lean manufacturing, including BOM management and routing.
Variation 4. Which TWO capabilities are part of Dynamics 365 Supply Chain Management?
medium- A.Fixed asset management
- ✓ B.Transportation management
- C.Project management
- D.Human resources
- ✓ E.Warehouse management
Why B: Transportation management (Option B) is a core capability of Dynamics 365 Supply Chain Management, providing advanced features for inbound and outbound transportation planning, freight rating, routing, and shipment consolidation. It integrates with warehouse management to optimize logistics and reduce shipping costs.
JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This MB-920 practice question is part of Courseiva's free Microsoft certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the MB-920 exam.