DRAG DROP
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A company uses Dynamics 365 Supply Chain Management to sell automobile tires.
The company sells different models of tires. Each model is available in different diameter sizes. The combination of a model and its diameter represents an individual stock keeping unit (SKU).
The manufacturer’s suggested retail price (MSRP) and purchase prices can vary between variants. The purchase price for the variants will change over time, but the MSRP will never change once it is configured. All price changes must be documented systematically. The MSRP must be the default selling price for the item if no other pricing is available.
You need to configure the prices for the tires.
Which configurations should you use? To answer, drag the appropriate configurations to the correct requirements. Each configuration may be used once, more than once, or not at all. You may need to drag the split bar between panes or scroll to view content.
NOTE: Each correct selection is worth one point.
Show Answer
Correct Answer: Set the MSRP for the product variants:
Released product master
Set the purchase price for the product variants:
Trade agreements
Explanation: MSRP is a fixed default sales price that should be defined on the released product master so it applies to variants when no other pricing exists. Purchase prices change over time and must be documented, which is handled through trade agreements with effective dates and history.
Question 183
HOTSPOT
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A distribution company uses Dynamics 365 Supply Chain Management.
A customer contacts the company to identify a defect in an ordered part. Additional quantities of the defective item are in stock. The defective items require a task that will trigger an action for the items and a label printed.
You need to configure the system.
Which features should you configure? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.
Show Answer
Correct Answer: Create an actionable task for the defective item:
Nonconformance
Print a label for the defective item:
Nonconformance tag
Explanation: In Dynamics 365 Supply Chain Management, the Nonconformance feature is used to record defective items and create actionable quality tasks such as investigation and disposition. The Nonconformance tag feature is specifically designed to print labels that identify and guide handling of nonconforming (defective) inventory.
Question 184
A company that uses Dynamics 365 Supply Chain Management recently became ISO 9001-certified.
The company must begin documenting nonconformances.
You need to configure the nonconformance functionality.
Which three features must you configure? Each correct answer presents part of the solution.
NOTE: Each correct selection is worth one point.
A. routes
B. operations
C. diagnostic types
D. quality charges
E. quarantine zones
Show Answer
Correct Answer: B, C, E
Explanation: To document and manage nonconformances in Dynamics 365 Supply Chain Management, you must configure core nonconformance components: Operations (used to define corrective/preventive actions taken for a nonconformance), Diagnostic types (used to classify and analyze the cause of nonconformances), and Quarantine zones (used to isolate nonconforming inventory). Quality charges are optional, and routes are unrelated to nonconformance management.
Question 185
DRAG DROP
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A manufacturing company uses Dynamics 365 Supply Chain Management.
You must review the safety stock level for raw materials.
You need to calculate the minimum coverage proposals based on standard deviation.
Which three actions should you perform in sequence? To answer, move the appropriate actions from the list of actions to the answer area and arrange them in the correct order.
Show Answer
Correct Answer: Create safety stock journal lines by excluding the current month’s transactions. Select the Standard deviation option.
Select the Use service level option.
Select the Service level value.
Explanation: To calculate minimum coverage based on standard deviation in Dynamics 365 SCM, you first generate safety stock journal lines using historical demand data (excluding the current, incomplete month) with the standard deviation method. Then you enable the service level calculation and specify the desired service level, which drives the safety stock and minimum coverage calculation.
Question 186
HOTSPOT -
You need to resolve the issue for UserB?
Which options should you use? To answer, select the appropriate options in the area.
NOTE: Each correct selection is worth one point.
Hot Area:
Show Answer
Correct Answer: Configure an RFQ:
Purchase requisition, case type with scoring method
Transfer an RFQ:
Purchase requisition
Explanation: In Dynamics 365, RFQs are configured from purchase requisitions using a case type and a solicitation type with a scoring method. RFQs are then transferred back to the purchase requisition for vendor selection and subsequent purchasing steps.
Question 187
A company uses the nonconformance functionality in Dynamics 365 Supply Chain Management.
When a manufactured part fails a quality test, a quality clerk creates a nonconformance. You determine that additional items are needed to correct the issue.
You must record the additional items for the nonconformance.
What should you do?
A. Reject the nonconformance and add the items to the quality order.
B. Reject the nonconformance and add a related operation.
C. Approve the nonconformance and add the items to the quality order.
D. Approve the nonconformance and add a related operation.
Show Answer
Correct Answer: D
Explanation: In Dynamics 365 Supply Chain Management, additional items can be recorded for a nonconformance only through related operations. Related operations (such as adding items, charges, or time) are available only after the nonconformance is approved. Therefore, you must approve the nonconformance and then add a related operation to record the additional items.
Question 188
HOTSPOT
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A donut company is implementing Dynamics 365 Supply Chain Management.
The company wants to set up and maintain formula items for donut production. If the formula quantity changes, all ingredients must automatically adjust with no manual edits.
You must configure the formula features.
Which features should you use? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.
Show Answer
Correct Answer: Variable
Scalable
Explanation: Set item component consumption to Variable so ingredient quantities automatically adjust with formula size changes. Enable the Scalable formula feature to ensure all ingredients scale proportionally when the formula quantity is changed.
Question 189
A company is implementing Dynamics 365 Supply Chain Management. The company manages inventory by using a just-in-time approach.
A purchase order arrives for an item. The system must allow sales order shipments of the item to be posted before the purchase order invoice is received.
You must ensure that the item model group configuration allows for shipment of the items.
Which parameter should you enable?
A. Physical negative inventory
B. Registration requirements
C. Include physical value
D. Financial negative inventory
E. Location profile negative inventory
Show Answer
Correct Answer: D
Explanation: The requirement is to post sales order shipments after a purchase order has been received physically but before the purchase invoice is posted. This means physical inventory exists, but there is no corresponding financial inventory yet. Enabling **Financial negative inventory** allows the system to ship items even though the financial inventory value has not been updated by the purchase invoice. Physical negative inventory is not needed because the receipt has already been posted physically.
Question 190
HOTSPOT
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A company is implementing Dynamics 365 Supply Chain Management. Inventory is valued through FIFO costing.
The company is preparing for cutover and go-live activities. The accounting manager wants to ensure that on-hand inventory is brought into Dynamics 365 Supply Chain Management at the correct cost.
ItemA has the following costing tiers:
• Tier 1: 20 each, $5
• Tier 2: 20 each, $10
• Tier 3: 20 each, $15
You need to configure the item and journals to meet the cutover requirement.
What should you configure? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.
Show Answer
Correct Answer: Item model group
Counting by tier
Explanation: FIFO is controlled at the item model group level. For cutover, a counting journal entered by tier allows loading on‑hand quantities with their FIFO cost layers preserved (20 @ $5, 20 @ $10, 20 @ $15) as opening inventory.
Question 191
A warehouse uses mobile devices for locating products.
Products are listed in the Inventory module in incorrect locations. Users must therefore manually locate products to be picked.
You need to ensure that the users’ mobile device updates the locations of the products.
Which two actions should you take to update product locations by using the mobile devices? Each correct answer presents part of the solution.
NOTE: Each correct selection is worth one point.
A. Manually move product to the correct physical location.
B. Log into a desktop computer and update the Inventory module.
C. Manually find the physical location of the product.
D. Scan a shelf barcode and update the inventory.
Show Answer
Correct Answer: A, D
Explanation: To correct inventory locations using mobile devices, users must first ensure the physical reality matches the system and then update the system from the device. Moving the product to the correct physical location ensures accuracy on the warehouse floor. Scanning the shelf barcode with the mobile device updates the product’s location in the inventory system directly from the device. Options B and C do not update locations via the mobile device itself.
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