A caulking manufacturer is implementing Dynamics 365 Supply Chain Management. When caulking is produced, it is sold by tubes, 1-gallon cans, 5-gallon buckets, 55-gallon drums, or 330-gallon totes with potential to add other sizes.
The manufacturer wants to ensure that when new units are added, only one conversion is set up that does not require conversions between each unit of measure.
You need to configure the unit of measure to meet the requirement.
What should you use?
A. Unit class
B. Conversion formula
C. Formula layout
D. Base unit
Show Answer
Correct Answer: D
Explanation: In Dynamics 365 Supply Chain Management, using a base unit within a unit class allows all other units to be converted only to that base unit. This hub-and-spoke approach means that when a new unit size is added, you define a single conversion to the base unit, and the system can automatically convert between all units in the class. This meets the requirement to avoid setting up conversions between every unit of measure.
Question 203
HOTSPOT
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A company is implementing Dynamics 365 Supply Chain Management. The company uses subcontracted services on its bills of material (BOMs).
You must set up and release a subcontractor item so that it can be included on the BOM and subcontractor charges are included in the BOM calculation. Because the subcontractor is a step included in a BOM but not a tangible item, inventory for the item must not be tracked in the warehouse.
You need to set up the subcontractor item and release the item to the company.
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: Service product type
Select stocked product
Explanation: Subcontracting in Dynamics 365 Supply Chain Management requires a service-type item so it can represent non-tangible work on a BOM. Even though it is a service, it must be marked as stocked so that BOM and production cost calculations generate inventory and financial transactions. No physical stock is maintained despite the stocked flag.
Question 204
HOTSPOT
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A distribution company that uses Dynamics 365 Supply Chain Management values inventory through standard cost. The company does not manufacture any products.
Some items require incremental updates to the standard cost. The original costs must be retained for reporting purposes.
You need to update the standard costs of the items.
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: Two version
None
Standard
Explanation: Use two costing versions to keep original standard costs for reporting while preparing incremental updates. In a non‑manufacturing environment, the fallback principle is set to None because cost rollups and BOM fallback are not required. The company values inventory using standard cost, so the cost type must be Standard.
Question 205
A company uses planning optimization in Dynamics 365 Supply Chain Management.
A new item is set up for production with a bill of materials (BOM) and is included in planning optimization.
You need to identify the planning output for the item.
What are two parts of the output? Each answer represents a partial solution.
NOTE: Each correct selection is worth one point.
A. warning
B. production order
C. purchase order
D. action message
Show Answer
Correct Answer: B, D
Explanation: For an item set up for production with a BOM and included in Planning Optimization, the engine generates planned production orders to cover demand. In addition, it produces action messages that provide planning recommendations (such as expedite, delay, or change quantities). Purchase orders are not generated for a make item, and warnings are not a standard planning output.
Question 206
A company uses Dynamics 365 Supply Chain Management.
A large item fits only one item per pallet. A purchase order for the item must be a minimum of 24. Additional line quantities for the item must be in multiples of 24.
An incorrect setup for the item allows entry of multiples of 50. This setup error causes purchase order entry overrides.
You must configure the system to enforce a match of default quantities during setup.
What should you do?
A. Select the Strict option.
B. Select the Standard option.
C. Configure Warehouse management options.
Show Answer
Correct Answer: A
Explanation: In Dynamics 365 Supply Chain Management, enforcing that entered order quantities exactly comply with the Minimum and Multiple quantities requires enabling Strict validation in Default order settings. The Strict option prevents users from entering quantities that do not match the configured multiples (for example, rejecting 50 when the multiple is 24), whereas Standard allows overrides with warnings. Therefore, selecting Strict enforces the correct default quantities and resolves the issue.
Question 207
A company is implementing Dynamics 365 Supply Chain Management in one legal entity that contains Site1 and Site2.
ItemA is a configured item, with configurations ConfigA and ConfigB. The business decides to stop buying ItemA ConfigB into Site2 but will still buy it at Site1.
You must configure ItemA to ensure the buying rules are implemented.
What should you configure?
A. Variant group
B. Select product variants to release
C. Variant suggestions
D. Default order setting rules
Show Answer
Correct Answer: D
Explanation: Default order setting rules allow you to control whether an item or specific variant can be purchased, sold, or transferred per site and warehouse. In this scenario, ItemA ConfigB must be stopped for purchasing at Site2 while remaining available at Site1, which is exactly handled by setting the purchase order type to 'Stopped' for Site2 in the default order settings.
Question 208
A company is using advanced warehouse functionality in Dynamics 365 Supply Chain Management.
A batch-tracked item in high-demand caused delays on sales orders. The vendor delivery is expected today.
Sales orders must be held until the items are checked for quality.
You need to set up batch attributes to allow for warehouse processing but hold sales orders.
What should you configure?
A. Unavailable status, block reservation, picking and shipping
B. Unavailable status, block shipping
C. Available status, block shipping
D. Unavailable status, block picking and shipping
E. Available status, block reservation, picking and shipping
Show Answer
Correct Answer: D
Explanation: To allow normal warehouse processing (receiving and put-away) while ensuring sales orders are held until quality checks are completed, the batch must use an **Unavailable** disposition. With an Unavailable status you can selectively block operations. Blocking **picking and shipping** prevents sales fulfillment, while still allowing reservations if needed and not interfering with inbound warehouse work. Therefore, **Unavailable status with picking and shipping blocked** is the correct configuration.
Question 209
A retail distributor is implementing Dynamics 365 Supply Chain Management.
Wholesale customers receive 10 percent off list price for the current calendar year. CustomerA is a wholesaler that agreed to a pilot program for a new product, with terms to receive a discounted set price for 100 each of the product for the next six months. The distributor will charge penalties to Customer if the 100 each are not sold within the period.
You must configure pricing for Customer.
Which three configurations should you set up? Each correct answer presents part of the solution.
NOTE: Each correct selection is worth one point.
A. Create a sales agreement with the price and discount is fixed parameter set to yes.
B. Create a trade agreement for wholesalers.
C. Set the find next parameter on trade agreements.
D. Create a sales agreement with the max enforced parameter set to yes.
E. Set the effective date on the trade agreement to begin after the sales agreement.
Show Answer
Correct Answer: A, B, D
Explanation: Wholesale customers need a general 10% discount, which is best handled through a trade agreement for the wholesaler customer group (B). The special pilot terms for CustomerA require a sales agreement with a fixed price/discount so that the agreed set price is always applied (A). Because the customer must sell exactly 100 units within the period and penalties apply if they exceed or misuse the agreement, the maximum quantity must be enforced on the sales agreement, which requires setting Max enforced to Yes (D).
Question 210
A company uses Dynamics 365 Supply Chain Management master planning. The company plans to run master planning throughout the day. Planning Optimization is not configured.
The company administrator reports that they are not able to configure any master planning features or enable master planning in Dynamics 365.
You need to implement Planning Optimization.
What should you do first?
A. Place the environment into maintenance mode.
B. Deallocate the current environment.
C. Enable the Planning Optimization configuration key.
D. Set the value of the Use Planning Optimization field to yes.
E. Activate the Planning Optimization license.
Show Answer
Correct Answer: A
Explanation: Before Planning Optimization can be enabled or configured, the environment must be placed into maintenance mode. This is required to activate the Planning Optimization configuration key and perform the initial setup steps. Without maintenance mode, master planning features related to Planning Optimization cannot be configured.
Question 211
HOTSPOT
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A company uses Dynamics 365 Supply Chain Management for inventory management in a single warehouse.
The warehouse is experiencing vendor supply issues with several specific groups of products. The demand and supply for products needs to be viewed for the warehouse using a master planning model for different periods of time.
You need to view the information in a single location.
Which configuration should you use for each requirement?
To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.
Show Answer
Correct Answer: Item allocation key
Period template
Explanation: Item allocation keys are used to group items into product families so supply and demand can be viewed together in one place (such as the Supply schedule). Period templates define the time buckets (daily, weekly, monthly, etc.) used to view inventory, supply, and demand across different periods.
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