HOTSPOT
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A company uses Dynamics 365 Supply Chain Management. Inventory is valued through FIFO costing.
The warehouse manager identifies item discrepancies and increases quantities in a counting journal. Finance then discovers that the cost on ItemA posted as zero dollars on the journal transaction.
You need to configure the system to ensure that the cost is populated on the transaction.
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: Default cost price
Inventory closing and adjustment
Explanation: When inventory is increased through a counting journal and no cost can be derived from existing FIFO layers, the system uses the item’s default cost price; if it is not set, the cost posts as zero. To correct an already posted counting journal with an incorrect value, Inventory closing and adjustment must be run to recalculate and adjust inventory values under FIFO costing.
Question 193
HOTSPOT
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A frozen food distribution company is implementing Dynamics 365 Supply Chain Management.
The warehouse manager wants to ensure that after items are picked, a temperature check is performed and verified on the items before shipment to customers. The temperature check must fall within a specific temperature range to pass.
You need to configure the system.
Which components 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 automated temperature check step:
Quality association
Configure temperature range:
Test variables
Explanation: Quality associations automatically trigger quality checks (quality orders) at warehouse processes like picking/shipping. Temperature limits are defined on test variables, which store the acceptable numeric min/max range used during the quality test.
Question 194
A company implements Dynamics 365 Supply Chain Management. The company uses the demand forecasting service to generate a statistical baseline forecast for one allocation key at a time.
The process takes too long to complete.
You need to ensure better performance of the service.
What should you configure?
A. Storage account name
B. Storage account key
C. Custom storage account
D. Request response mode
Show Answer
Correct Answer: D
Explanation: When generating statistical baseline forecasts for a small scope (such as one item or one allocation key at a time), performance can be improved by enabling Request response mode. This mode processes the forecast synchronously instead of using batch-oriented execution, which reduces overhead and improves response time for small forecast jobs. The other options relate to storage configuration and do not directly address forecast performance in this scenario.
Question 195
DRAG DROP
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A company uses Dynamics 365 Supply Chain Management. The company implements master planning.
The company identifies several supply chain issues.
You need to configure safety margins for the company.
Which type of safety margin should you use? To answer, drag the appropriate safety margin types to the correct issues. Each safety margin type 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: A vendor is two days behind in their order creation.
Reorder margin
Inbound docks are consistently two days behind in unloading trucks.
Receipt margin
The purchasing team is one day behind issuing purchase orders to vendors.
Reorder margin
Explanation: Reorder margin buffers delays in placing supply orders (vendor order creation and late PO issuance). Receipt margin buffers delays in handling incoming supply, such as unloading at inbound docks.
Question 196
A manufacturing company uses Dynamics 365 Supply Chain Management.
The procurement manager updates the minimum stock levels by using the safety stock journal. The manager encounters a setup error while calculating the proposal for the minimum inventory level by using the service level option.
You need to identify the cause of the error.
What is the cause of the error?
A. The Multiplication factor value was left blank.
B. Safety stock journal lines were created by including the current month’s transactions.
C. The Use the calculated minimum quantity as the new minimum quantity option was not used.
D. The Lead time margin value was left blank.
E. The Calculate standard deviation option was not used while creating the journal lines.
Show Answer
Correct Answer: E
Explanation: When calculating minimum inventory using the service level option in the safety stock journal, Dynamics 365 requires demand variability data. This is obtained by enabling **Calculate standard deviation** when creating the journal lines. If this option is not set to Yes, the system cannot calculate safety stock based on service level, resulting in a setup error.
Question 197
DRAG DROP -
A distribution company uses Dynamics 365 Supply Chain Management.
Users in the warehouse must have the ability to create and process transfer orders from a mobile device.
You need to complete the setup.
Which areas should you configure? To answer, drag the appropriate areas to the correct prerequisites. Each area 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: Process warehouse app events:
Feature management
Create transfer orders from the warehouse app:
Warehouse management setup
Confirm outbound shipments from batch jobs:
Warehouse management setup
Configure the mobile device menu item:
Feature management
Explanation: Several warehouse app capabilities (event processing and mobile menu framework support) are controlled by Feature management flags. The operational setup for transfer orders and batch shipment confirmation is configured within Warehouse management setup.
Question 198
HOTSPOT
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A distribution company uses Dynamics 365 Supply Chain Management.
A high-volume warehouse for the distribution company automatically releases transfer order lines to the warehouse throughout the day.
Order line quantities are frequently changed after release to the warehouse. However, the load lines are not always updated.
You need to configure automatic updates to the load lines.
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: Configure Warehouse parameters.
Disable automatic work creation.
Explanation: Enable shipment auto-update is set in Warehouse management parameters so shipment/load lines update when order quantities change. In the wave template, disabling automatic work creation allows shipments to be re-updated automatically without locking work, ensuring load lines reflect quantity changes.
Question 199
HOTSPOT
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A company uses Dynamics 365 Supply Chain Management. The company uses a Business Unit financial dimension. The dimension is required on items and posted on transactions.
The company wants to update item costs but exclude the required financial dimension. The change must include a warning to users before the update. The costing method should be calculated based on the expected, calculated cost to produce an item.
You must configure the system to meet the requirements.
Which actions should you perform? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.
Show Answer
Correct Answer: Enable Options of defaulting financial dimensions for inventory standard cost revaluation.
Select None.
Explanation: Enabling this feature allows standard cost updates without inheriting required financial dimensions. Setting the origin of financial dimensions to None excludes the Business Unit dimension while still providing a system warning during standard cost revaluation based on calculated (expected) production costs.
Question 200
A company uses Dynamics 365 Supply Chain Management. The company provides warehouse workers with handheld devices to perform inventory operations.
Periodic inventory audits are required due to the frequent theft of some inventory items from a warehouse. Some inventory has been fully depleted. On-hand inventory quantities of other items are consistently incorrect.
You need to configure the system to automatically create cycle-counting work.
Which two methods can you use? Each correct answer presents a complete solution.
NOTE: Each correct selection is worth one point.
A. threshold parameters
B. work pool
C. cycle count plan
D. work policies
E. inventory journals
Show Answer
Correct Answer: A, C
Explanation: Dynamics 365 Supply Chain Management can automatically generate cycle-counting work in two ways: by configuring cycle counting thresholds (which trigger counts when on-hand quantities fall below defined levels) and by setting up cycle counting plans (which schedule recurring counts by item, location, or frequency). Other options like work pools, work policies, or inventory journals do not create cycle-counting work automatically.
Question 201
A company uses Dynamics 365 Supply Chain Management. The company implements master planning.
The company reports delays in the supply chain that have resulted in late deliveries for products. You must simulate several broad delays across all products in the supply chain when calculating lead times. Daily planning for items must not be impacted.
You need to configure the system.
What should you configure?
A. Planned orders
B. Receipt margins
C. Master plans
D. Coverage groups
E. Released products
Show Answer
Correct Answer: B
Explanation: Receipt margins add a buffer to the expected receipt dates during master planning to simulate supply chain delays (such as supplier or transportation delays) without changing item lead times or affecting daily planning. They can be applied broadly to simulate delays across all products while keeping normal planning behavior intact.
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