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 capabilities are part of the core capabilities of Dynamics 365 Supply Chain Management?
Warehouse management
Warehouse management is a core capability.
Transportation management
Transportation management is a core capability.
Payroll processing
Why wrong: Payroll processing is in Dynamics 365 Human Resources.
Sales order management
Why wrong: Sales order management is typically in Dynamics 365 Sales.
Inventory management
Inventory 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 (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.
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.
Warehouse management
Why this is correct
Warehouse management is a core capability.
Related concept
Read the scenario before looking for a memorised answer.
Transportation management
Why this is correct
Transportation management is a core capability.
Related concept
Read the scenario before looking for a memorised answer.
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.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
The trap here is that candidates often 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.
Detailed technical explanation
Dynamics 365 Supply Chain Management uses a unified data model with the finance and operations platform, enabling real-time visibility across warehouse, transportation, and inventory. Transportation management (B) leverages rate engines and route planning algorithms to optimize freight costs and delivery schedules, while inventory management (E) supports multi-site, multi-warehouse inventory valuation and replenishment strategies like min/max and demand-driven planning.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
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
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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 (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.
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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