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: Variable component consumption allows ingredient quantities to scale with the formula quantity. Enabling the Scalable formula feature automatically adjusts all scalable ingredient quantities when the formula size changes.
Question 193
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: Enable Financial negative inventory. The receipt has been physically updated by the purchase order arrival/receipt, but the purchase invoice has not yet been posted. Allowing shipment before financial update requires the system to permit financially negative inventory. Physical negative inventory applies when physical stock itself would go below zero before receipt.
Question 194
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: Configure item for FIFO: Item model group
Configure journal for import: Movement by date per tier
Explanation: FIFO is defined on the Item model group. To load opening inventory with the correct FIFO cost layers, use a Movement journal and enter each tier separately by date, quantity, and cost.
Question 195
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: C, D
Explanation: To update incorrect inventory locations using a mobile device, the user must first physically locate the misplaced product, then scan the correct shelf/location barcode and update the inventory record from the mobile device. Updating on a desktop does not use the mobile workflow, and moving the product does not update the recorded location if the item was simply found in the wrong place.
Question 196
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.
Explanation: Inventory increases from a counting journal use the item's default cost price when no inventory cost can be derived. To correct the financial value of a posted transaction under FIFO, use Inventory closing and adjustment to recalculate/adjust inventory costs.
Question 197
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 groups
Explanation: A quality association automatically creates a quality order at the required warehouse process event (such as after picking). The acceptable temperature limits are configured as part of the quality testing setup used by the test group in the available answer choices.
Question 198
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: For scenarios where the demand forecasting service generates a statistical baseline forecast for a single item or one allocation key at a time, enabling Request response mode (Use request response mode) improves performance by using synchronous request/response processing instead of the batch pattern. Storage account settings are for Azure storage connectivity and do not address this performance scenario.
Question 199
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: Vendor is two days behind in their order creation. → Receipt
Inbound docks are consistently two days behind unloading trucks. → Receipt
Purchasing team is one day behind issuing purchase orders. → Reorder
Explanation: Reorder margin adds buffer before placing supply orders. Receipt margin adds buffer for incoming supply handling and receipt delays. Issue margin is for outbound shipment handling, so it does not apply here.
Question 200
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: The service level calculation depends on demand variability, which requires a calculated standard deviation. If the journal lines were created without enabling the Calculate standard deviation option, the system cannot calculate a proposal using the Use service level option, resulting in a setup error.
Question 201
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 → Feature management
Confirm outbound shipments from batch jobs → Feature management
Configure the mobile device menu item → Warehouse management setup
Explanation: The first three capabilities are introduced as feature-managed functionality that must be enabled. After enabling the features, the mobile device menu item is configured under Warehouse management setup.
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