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Question 101:
A company uses Dynamics 365 Supply Chain Management for advanced warehousing and wants to improve picking efficiency for small online orders. These orders typically involve 1–3 items and rapid fulfillment expectations. The warehouse manager wants workers to pick multiple small orders at the same time using a structured picking approach that minimizes travel and consolidates tasks into efficient batches. The system must support grouping multiple orders into a single picking path while keeping each order segregated for packing. What should you configure?
A) Cluster picking
B) Batch picking
C) Zone picking
D) Replenishment waves
Answer:
A
Explanation:
Cluster picking is the correct configuration because it allows a worker to pick multiple small orders at once while keeping them separated into individual containers. Option A is ideal for environments where a high volume of small orders must be fulfilled quickly. In such operations, picking one order at a time would create excessive travel and slow fulfillment. Cluster picking solves this by letting the worker move through the warehouse once while picking items for multiple orders.
Cluster picking works by grouping several sales orders or work orders into a single cluster. Each order in the cluster is assigned its own tote, bin, or container mounted on a cart. As the warehouse worker scans locations and picks items, the mobile device prompts them to place the item into the correct tote, maintaining order integrity while optimizing the pick path. This ensures accuracy while significantly reducing travel time.
Option B, batch picking, allows grouping of multiple order lines but often results in the merging of similar items, requiring sortation later. This can create additional steps for small e-commerce orders where segmentation must be preserved from the start. For operations requiring strict order separation during picking, batch picking is less efficient than cluster picking.
Option C, zone picking, divides picking responsibilities by warehouse zones, which is useful for large or complex orders but less effective for small multi-item e-commerce orders that pass through many zones. Zone picking may increase overall handling time because picked items must be merged before packing.
Option D, replenishment waves, are used to refill pick locations rather than picking customer orders. They do not create combined picking tasks and are entirely unrelated to order consolidation processes.
Cluster picking provides strong operational benefits. It reduces travel time, increases picking speed, improves picker utilization, and shortens fulfillment cycles. It also integrates naturally with other warehouse processes such as packing, staging, and shipping. Once the worker completes the pick route, each tote is already pre-sorted by order, allowing a seamless transition to packing.
Cluster picking is particularly effective in e-commerce and retail distribution centers where order sizes are small and order volume is high. It allows workers to handle multiple fulfillment tasks simultaneously, contributing significantly to overall throughput.
The system automatically optimizes pick paths based on location directives and pick sorting rules. This ensures that workers follow the most efficient route through the warehouse, further improving productivity.
Thus, cluster picking is the correct solution because it consolidates small orders into a single pick route while preserving order integrity and maximizing operational efficiency.
Question 102:
A distribution company using Dynamics 365 Supply Chain Management needs to improve inventory reservation accuracy. They frequently have issues where the system reserves inventory in bulk storage locations instead of forward pick locations, causing inefficiencies and extra travel during picking. They want the system to always check forward pick locations first and only reserve bulk locations if forward picks are empty. What should you configure?
A) Reservation hierarchy prioritizing location types
B) Location profile restrictions
C) Wave step code ordering
D) Work template sequencing
Answer:
A
Explanation:
A reservation hierarchy prioritizing location types is the correct configuration because it dictates how the system determines which location dimensions to evaluate and in what order. Option A ensures that forward pick locations are always evaluated before bulk storage, allowing the system to reserve inventory in the optimal order. This prevents inefficient picking and ensures workers pull items from the correct area.
Reservation hierarchies are at the core of advanced warehouse reservation logic in Dynamics 365. They define the order in which the system evaluates dimensions such as site, warehouse, location type, batch, license plate, and more. By placing forward pick locations earlier in the hierarchy, the system attempts to reserve product there first. Only if inventory is insufficient will the system evaluate bulk or reserve locations.
Option B, location profile restrictions, help define how locations are used but do not control reservation priority. They specify allowable item types or storage attributes but cannot enforce pick-first rules.
Option C, wave step code ordering, controls the sequence of wave processing tasks but does not dictate where inventory is reserved.
Option D, work template sequencing, controls how warehouse work is created but not how inventory is reserved.
In cases where forward pick locations are empty, the reservation hierarchy ensures that bulk locations are selected automatically. This supports seamless replenishment because wave replenishment can then move items from bulk to pick locations before picking begins.
Thus, reservation hierarchy prioritization is the correct solution because it controls allocation order, improves picking efficiency, and ensures optimal use of forward pick areas.
Question 103:
A company using Dynamics 365 Supply Chain Management needs to optimize material handling for items stored on pallets. Every time a pallet is moved, the system must track the pallet as a whole unit using a unique identifier. Workers must scan a single code to move the entire pallet instead of scanning individual items. What should you configure?
A) License plate tracking
B) Batch-enabled tracking
C) Serial number control
D) Unit conversions
Answer:
A
Explanation:
License plate tracking is the correct configuration because it allows the system to assign a unique identifier (license plate) to each pallet, container, or handling unit. Option A enables workers to move entire pallets using a single scan, dramatically improving warehouse efficiency while maintaining accurate inventory tracking.
Option B, batch-enabled tracking, tracks inventory based on batch attributes such as production date or expiration date. It does not support pallet-level movement or consolidated scanning.
Option C, serial number control, tracks individual units but is inefficient for pallet operations because scanning each serial number would be time-consuming.
Option D, unit conversions, help translate between units of measure but do not track inventory movement.
License plate tracking integrates closely with mobile device workflows. When workers move pallets, they scan the license plate and the system updates location records. This improves accuracy because it reduces the chance of movement errors and ensures real-time visibility.
License plates also support containerization. During picking or packing, workers can consolidate multiple items into a new license plate (e.g., a shipping pallet). This maintains complete traceability from receipt through shipment.
This method also supports advanced warehouse processes such as inventory transfers, replenishment, picking, cycle counting, and quality inspection. License plates ensure that entire pallets can be counted as single units, dramatically improving counting efficiency.
Thus, license plate tracking is the correct solution because it streamlines pallet movement, improves accuracy, minimizes scanning effort, and integrates with all advanced warehouse activities.
Question 104:
A manufacturer using Dynamics 365 Supply Chain Management wants to improve production scheduling accuracy. They need the system to schedule operations in the correct sequence while respecting machine availability, labor capacity, and dependencies between operations. The scheduling engine must automatically adjust the plan when upstream or downstream operations change. What should you configure?
A) Operation scheduling with backward and forward scheduling
B) Material shortage reports
C) Resource capacity profiles
D) Indirect labor codes
Answer:
A
Explanation:
Operation scheduling with backward and forward scheduling is the correct configuration because it ensures that production operations are sequenced correctly while respecting resource constraints. Option A supports sequencing operations based on routings and schedules them in the proper order, taking into account machine time, labor availability, and production dependencies.
Option B, material shortage reports, help identify missing materials but do not schedule operations.
Option C, resource capacity profiles, define capacity but cannot schedule operations.
Option D, indirect labor codes, track non-production time and do not influence production schedules.
Operation scheduling integrates with routings, work centers, and resource groups. It accounts for setup times, run times, queue times, and transfer times. It also considers resource calendars, ensuring that operations are scheduled only during work hours and shifts.
The scheduling engine handles dependencies between operations. If an upstream operation is delayed, the system adjusts downstream operations automatically to maintain sequencing integrity. This ensures that production plans reflect real-world constraints and minimizes the risk of unrealistic schedules.
Operation scheduling also supports capacity leveling, helping planners resolve bottlenecks. If a work center becomes overloaded, the system can suggest alternate resources or schedule shifts.
Thus, operation scheduling with backward and forward scheduling is the correct solution.
Question 105:
A company using Dynamics 365 Supply Chain Management needs to optimize outbound picking for multi-line sales orders. They want the system to group items by warehouse location so that workers pick items in a logical path, minimizing travel and improving efficiency. What should you configure?
A) Pick location sorting in location directives
B) Cluster picking policies
C) Wave templates
D) Unit sequence groups
Answer:
A
Explanation:
Pick location sorting in location directives is the correct configuration because it ensures that picking work is generated in the most efficient physical sequence. Option A sorts pick lines based on warehouse layout attributes such as aisle, rack, level, or bin. This minimizes travel time and ensures that workers follow a logical picking route.
Option B, cluster picking policies, help group orders but do not control pick sequence.
Option C, wave templates, organize wave processing but do not optimize pick routing.
Option D, unit sequence groups, control unit conversions but not picking paths.
Location directive pick sorting integrates with work templates and wave processing. When a wave generates work, the system evaluates sorting rules and orders pick tasks accordingly. This ensures consistency across picking operations.
Pick sorting supports many warehouse strategies including batch picking, cluster picking, and zone picking. Regardless of method, sorting ensures that workers move efficiently from one location to the next.
Thus, pick location sorting is the correct solution.
Question 106:
A company using Dynamics 365 Supply Chain Management wants to improve inbound put-away for mixed pallets. Some incoming pallets contain multiple item types, and workers must break down the pallet and distribute items into their appropriate storage locations. The system must generate separate put-away work for each item based on location directives, and workers must scan items individually during the process. What should you configure?
A) Mixed license plate receiving with put-away
B) Bulk location replenishment
C) Work consolidation policies
D) Cross-docking templates
Answer:
A
Explanation:
Mixed license plate receiving with put-away is the correct configuration because it allows workers to receive a pallet that contains multiple item types, break it down, and distribute the items to their proper storage locations. Option A ensures that the system creates separate put-away work for each distinct item on the pallet according to defined location directives, making the receiving process structured, accurate, and compliant with warehouse rules.
Option B, bulk location replenishment, deals with maintaining inventory levels in bulk storage but is unrelated to receiving mixed pallets.
Option C, work consolidation policies, consolidate existing work but do not generate multi-item put-away tasks.
Option D, cross-docking templates, send received items directly to shipping or consumption but do not break mixed pallets into separate put-away instructions.
Mixed license plate receiving improves accuracy by requiring workers to scan each item or sub-license plate, reducing the risk of missing lines or misplacing goods. Because inbound inventory may contain multiple batches, serial numbers, or units of measure, scanning ensures that all quantity details are captured correctly.
This process also integrates well with quality management. If any item on the pallet requires quarantine or inspection, the system can automatically generate quarantine work for that specific item while allowing other items to proceed to regular storage. This prevents bottlenecks and ensures compliance with quality requirements.
Thus, mixed license plate receiving with put-away is the correct configuration because it fully supports pallets with multiple items, enforces storage rules, improves scanning accuracy, and integrates with quality and warehouse processes to ensure proper handling of inbound goods.
Question 107:
A manufacturing company needs to control production material consumption more precisely. They do not want materials to be consumed at the start of a production order. Instead, materials should be consumed automatically during specific operations, based on the routing sequence. The system must match consumption to actual operational flow. What should you configure?
A) Route-based consumption
B) BOM-based consumption
C) Manual consumption journals
D) Backflushing at order start
Answer:
A
Explanation:
Route-based consumption is the correct configuration because it ties material usage directly to routing operations. Option A ensures that materials are automatically consumed at specific points during production, reflecting the actual manufacturing process flow. This prevents premature consumption, improves costing accuracy, and aligns material usage with operational progress.
Most production environments do not consume all materials at the beginning of the production order. Some components are used at different stages of the production process. Without route-based consumption, the system may consume materials too early or at incorrect production stages. This creates a mismatch between physical consumption and system records, causing inaccuracies in inventory, costing, and production reporting.
Route-based consumption allows the system to consume components automatically when a worker completes a specific operation using the job card device or production floor execution. This ensures that the system records consumption only after the operation that physically consumes the material has been completed.
Option B, BOM-based consumption, consumes materials based solely on the bill of materials, without linking to routing stages. This may work for simple production processes but does not support multi-stage consumption.
Option C, manual consumption journals, allow users to record usage manually but are time-consuming and prone to human error.
Option D, backflushing at order start, consumes all materials at the beginning, which contradicts the requirement for staged consumption.
This approach supports lean and just-in-time practices by ensuring that materials are consumed only when necessary. It also improves master planning accuracy because the system no longer assumes that all materials are consumed at the start. The consumption aligns more closely with actual manufacturing lead times, preventing premature depletion of materials.
Thus, route-based consumption is the correct configuration because it supports staged consumption, improves costing accuracy, and reflects true production behavior.
Question 108:
A company using Dynamics 365 Supply Chain Management needs to manage containerized inbound shipments. They want to track inbound containers, record expected arrival dates, track items inside each container, and monitor shipping progress. The system must support ASN integration and allow warehouse workers to receive goods directly from containers. What should you configure?
A) Containerization in inbound shipments
B) Load planning workbench
C) Transfer order consolidation
D) Vendor consignment inventory
Answer:
A
Explanation:
Containerization in inbound shipments is the correct configuration because it allows organizations to track inbound containers, including all items inside, expected arrival dates, shipment status, and receiving processes. Option A provides structured container management that supports advanced shipping notices, international logistics, and purchase-order-based receiving.
Option B, load planning workbench, is used for outbound shipments, not inbound containers.
Option C, transfer order consolidation, applies to internal warehouse movements, not supplier shipments.
Option D, vendor consignment inventory, handles supplier-owned stock but does not support container tracking.
Containerization also integrates with advanced shipping notices (ASNs). When suppliers send ASN information, the system updates expected contents and quantities for each container. This reduces receiving discrepancies and speeds up inbound processing because workers know exactly what to expect.
Additionally, warehouse workers can receive goods directly from containers. The system can split the container contents into multiple put-away tasks based on location directives, ensuring proper storage. This process improves receiving efficiency by eliminating the need for manual segregation or checking.
Thus, containerization in inbound shipments is the correct solution because it provides complete visibility into container movements, integrates with ASNs, supports receiving operations, and enhances supply chain planning accuracy.
Question 109:
A distribution center needs to ensure that fragile items are picked and moved using special handling instructions. Workers must be alerted via mobile device prompts whenever handling fragile inventory. The system should enforce specific pick steps, movement methods, and placement rules. What should you configure?
A) Work instructions tied to item groups
B) Location profile constraints
C) Batch disposition codes
D) Inventory statuses
Answer:
A
Explanation:
Work instructions tied to item groups are the correct configuration because they enable the system to display special handling requirements during warehouse work execution. Option A ensures that fragile items trigger specific prompts, safety instructions, and process rules on the mobile device, guiding workers through proper handling procedures.
Fragile items such as glass, electronics, or delicate components require special care. Without system-enforced instructions, workers may accidentally mishandle items, leading to product damage, safety concerns, and financial loss. Work instructions help ensure consistent handling practices by providing clear, actionable prompts during picking, movement, and put-away.
Option B, location profile constraints, control what items can be placed in certain locations but do not provide handling instructions.
Option C, batch disposition codes, track quality status but do not create operational prompts.
Option D, inventory statuses, identify whether inventory is available or blocked but do not enforce handling rules.
Work instructions can include details such as using two hands, scanning additional identifiers, placing items on padded carts, or avoiding mixing fragile items with heavy items. The instructions appear automatically when the worker scans a fragile item during picking or movement tasks.
Thus, work instructions tied to item groups are the correct solution because they enforce consistent, safe handling of fragile inventory through automated mobile device prompts.
Question 110:
A manufacturing company needs to track production scrap in detail. Operators must record scrap quantities, reasons, and responsible operations. The scrap must be posted to financial accounts and considered in production costing. What should you configure?
A) Scrap registration in production floor execution
B) Manual adjustment journals
C) Indirect activity codes
D) Material picking lists
Answer:
A
Explanation:
Scrap registration in production floor execution is the correct configuration because it allows workers to record scrap quantities accurately during production. Option A provides structured scrap entry fields where workers can specify scrap quantity, scrap reason codes, and the operation where scrap occurred. This integrates with costing and ensures that scrap is posted to financial accounts properly.
Scrap is a normal part of most manufacturing processes, but it must be tracked accurately to understand true production performance. Without detailed scrap reporting, managers cannot identify where waste occurs or take corrective action. Scrap registration ensures that scrap data is captured at the right moment, using intuitive mobile or touchscreen interfaces on the shop floor.
Option B, manual adjustment journals, adjust inventory but do not link scrap to production operations or costing.
Option C, indirect activity codes, track non-production activities and do not record scrap quantities.
Option D, material picking lists, manage consumption but do not track scrap.
Thus, scrap registration in production floor execution is the correct solution because it enables accurate, detailed scrap tracking, improves costing accuracy, and supports continuous improvement.
Question 111:
A company using Dynamics 365 Supply Chain Management needs to manage production materials that must be staged at the production line shortly before they are consumed. They want the system to automatically create picking work for staging when a production order reaches a designated status. Material staging must follow specific routes and rules to ensure that items are delivered to the correct production input location. What should you configure?
A) Wave release to production
B) Kanban replenishment
C) Production BOM journals
D) Raw material picking lists
Answer:
A
Explanation:
Wave release to production is the correct configuration because it enables the automated creation of raw material staging work when a production order reaches a specific status, such as estimated or released. Option A ensures that materials are picked from warehouse locations based on location directives and delivered to production input locations according to work templates. This approach provides structured, rule-driven staging that supports lean, discrete, and mixed-mode manufacturing operations.
Option B, Kanban replenishment, is suitable for lean environments but requires a Kanban framework, which the question does not indicate. It also focuses on pull-based flows, not staging driven by production order status.
Option C, production BOM journals, update consumption but do not create material movement work or support warehouse staging.
Option D, raw material picking lists, provide documentation but do not automate warehouse work or staging movements.
Wave release to production leverages advanced warehousing functions such as location directives, work templates, and mobile device workflows. Location directives define where materials should be picked from and where they should be placed. Work templates define the steps workers must follow, ensuring consistency and compliance with operational standards.
Wave release to production also supports multi-stage production. For example, components for operation 10 may be staged early, while components for operation 20 are staged later. This allows fine-grained control of material flow and reduces floor clutter by preventing all materials from arriving at once.
Wave production staging also integrates with license plate tracking, ensuring pallets and containers are moved accurately. Workers scan items and locations at every step, improving accuracy and traceability.
Thus, wave release to production is the correct choice because it automates staging, enforces warehouse rules, enhances production coordination, supports multi-stage operations, and provides a scalable and controlled method for delivering materials to production input locations.
Question 112:
A distribution company wants to optimize replenishment for fast-moving items in forward pick locations. They must ensure that pick locations remain fully stocked during peak order periods. Replenishment should occur automatically when inventory drops below a defined threshold, and the system must generate movement work that transfers stock from bulk locations to forward pick areas. What should you configure?
A) Demand-based replenishment
B) Min-max replenishment
C) Load planning workbench
D) Inventory blocking
Answer:
B
Explanation:
Min-max replenishment is the correct configuration because it allows the system to automatically replenish forward pick locations when inventory levels fall below the configured minimum threshold. Option B ensures that the system monitors pick-face locations and triggers movement work from bulk storage whenever inventory falls short of required levels. This maintains optimal picking efficiency, prevents stockouts, and supports high-volume order fulfillment.
Option A, demand-based replenishment, is more suitable for irregular or unpredictable consumption patterns and often relies on sales orders or production demand rather than location thresholds.
Option C, the load planning workbench, is used for outbound transportation and has no impact on warehouse replenishment.
Option D, inventory blocking, prevents inventory from being used but does not generate replenishment or work creation.
Min-max replenishment integrates tightly with wave processing. For example, when a wave is released for picking, the system checks whether the forward pick location contains enough stock to fulfill the pick work. If not, the system generates wave replenishment tasks before picking begins. This ensures that the picking process is uninterrupted and efficient.
Replenishment work follows the same warehouse rules as picking. Location directives determine where stock should come from and where it should be placed. Work templates define the steps that workers must complete, ensuring accuracy and compliance.
Thus, min-max replenishment is the correct choice because it automates stock monitoring, ensures consistent availability of fast-moving items, generates movement work, and supports high-performance picking operations.
Question 113:
A company wants to use Dynamics 365 Supply Chain Management to manage co-products and by-products generated during production. They need the system to automatically record output quantities for each co-product when a primary product is reported as finished. What should you configure?
A) Co-product and by-product formulas
B) Transfer journals
C) Production order status updates
D) Output picking lists
Answer:
A
Explanation:
Co-product and by-product formulas are the correct configuration because they define how multiple products are produced simultaneously during a manufacturing process. Option A ensures that when the primary product is reported as finished, the system automatically generates the required quantities of co-products and by-products based on predefined formulas. This is essential in industries such as food processing, chemical production, metal refining, and oil manufacturing, where manufacturing output naturally includes multiple related items.
Option B, transfer journals, move inventory between locations but do not support co-product generation.
Option C, production order status updates, track workflow progress but do not generate item outputs.
Option D, output picking lists, relate to consumption rather than production output.
Co-product and by-product formulas are defined within the production BOM. They specify standard quantities and costing methods for each product generated during the production process. When the primary product is reported as finished, co-product quantities are automatically posted to inventory, including appropriate cost absorption.
The system also supports variable co-product quantities. For example, if co-product yield depends on batch quality or material moisture level, operators can adjust the quantities during reporting. The system then updates costing accordingly.
Co-products integrate seamlessly with master planning. The system understands that producing one unit of the main product will produce proportional quantities of co-products, ensuring accurate forecasting and replenishment.
Thus, co-product and by-product formulas are the correct configuration because they automate output posting, improve costing accuracy, and ensure synchronized reporting for multi-output production processes.
Question 114:
A company using Dynamics 365 Supply Chain Management wants to implement automated picking for outbound shipments using waves. They need to ensure that only specific orders meeting predefined criteria are included in a wave. Criteria may include shipping method, order priority, customer group, or delivery date. What should you configure?
A) Wave templates with wave filters
B) Shipment confirmation rules
C) Load building strategies
D) Route planning parameters
Answer:
A
Explanation:
Wave templates with wave filters are the correct configuration because they enable the system to automatically select only those orders that meet specific criteria when generating picking waves. Option A allows companies to predefine filtering logic based on fields such as customer group, shipment type, carrier code, priority, or requested ship date. This ensures that waves contain only relevant orders and supports efficient, streamlined picking operations.
Wave templates define the processing logic used to generate work. They specify steps such as releasing orders, allocating inventory, creating work, printing labels, and generating replenishment tasks. Wave filters enhance this by determining which orders qualify for each wave.
Option B, shipment confirmation rules, apply after picking and do not influence wave creation.
Option C, load building strategies, organize shipments into loads but do not determine which orders enter a wave.
Option D, route planning parameters, optimize transportation routing but do not control picking waves.
Wave filters enable sophisticated picking strategies. For example, a warehouse may define separate waves for express shipments, refrigerated items, or orders requiring special handling. Filters make this possible by using attributes to dynamically identify eligible orders.
Thus, wave templates with wave filters are the correct solution because they support targeted order selection, reduce manual wave management, and enhance overall warehouse efficiency.
Question 115:
A company needs to control warehouse item storage using rules based on temperature. Some items must be stored in refrigerated areas, while others cannot be stored near temperature-sensitive goods. Workers must be prevented from placing items in inappropriate locations. What should you configure?
A) Location profile restrictions
B) Work template filters
C) Quality management sampling
D) Cycle count plans
Answer:
A
Explanation:
Location profile restrictions are the correct configuration because they define which items may be stored in specific locations, based on rules such as temperature, hazard type, size, or storage conditions. Option A ensures that items requiring refrigeration are stored only in temperature-controlled locations and prevents workers from placing incompatible items together.
Warehouse storage constraints are critical for maintaining product quality, regulatory compliance, and safety. Temperature-sensitive items such as pharmaceuticals, frozen foods, or chemicals must be stored in specific environments. Location profiles define the storage attributes of each location, such as whether it is refrigerated, frozen, ambient, or restricted.
Option B, work template filters, determine when and how work is generated but do not enforce item storage rules.
Option C, quality sampling, ensures product testing but does not prevent incorrect storage.
Option D, cycle count plans, govern inventory counting frequency, not storage restrictions.
Location profile restrictions work by linking items or item groups to compatible location types. When warehouse workers attempt to put away an item, the system checks location restrictions and prevents the worker from confirming a put-away in an incompatible location. This eliminates human error and ensures consistent adherence to storage rules.
Location profiles also integrate with location directives. Directives determine where items should be stored, while restrictions ensure they cannot be stored incorrectly. Together, these features create a safe, automated, and compliant warehouse environment.
Thus, location profile restrictions are the correct solution because they enforce storage compatibility rules, protect temperature-sensitive goods, and ensure workers place items correctly.
Question 116:
A company using Dynamics 365 Supply Chain Management wants to improve efficiency in their return order process. They need to ensure that all returned items go through a mandatory inspection step before they can be restocked. The inspection outcome may classify items as resellable, damaged, refurbishable, or scrap. The system must direct warehouse workers to specific locations depending on the inspection result. What should you configure?
A) Return disposition codes with location directives
B) Quality associations for sales returns
C) Inventory adjustment journals
D) Quarantine management only
Answer:
A
Explanation:
Return disposition codes with location directives is the correct configuration because it ensures that the system can automatically route returned items to appropriate warehouse locations depending on the inspection outcome. Option A allows the warehouse to enforce structured return handling where items must be inspected and sorted into categories such as resellable, refurbishable, damaged, or scrap. This supports operational accuracy, compliance, traceability, and efficient restocking of returned merchandise.
When customers return goods, the quality and condition of those goods vary significantly. Some items are perfectly resellable, while others may be defective, require rework, or are damaged beyond repair. Without a structured process, these items may be incorrectly placed into available stock, leading to customer dissatisfaction or compliance issues. Return disposition codes prevent this by controlling the workflow and ensuring that returned items undergo an inspection that determines their next destination.
Option B, quality associations for sales returns, can trigger quality orders but cannot independently direct items to different warehouse locations based on the inspection result.
Option C, inventory adjustment journals, can update stock but do not support workflow-driven inspection and routing.
Option D, quarantine management, supports inspection but cannot classify or route items based on multiple result categories unless disposition codes and directives are used.
Return disposition codes also support reporting and analytics. The organization can track the volume and reasons for returns and identify common failure types. This helps improve product quality, vendor relationships, or packaging methods. It also helps management determine financial impacts because disposition codes may trigger accounting entries such as inventory loss or cost adjustments.
Furthermore, combining disposition codes with advanced warehouse processes ensures that all return activities follow controlled mobile device workflows. Warehouse workers receive instructions on where to move items based on the inspection results, ensuring consistency across teams and shifts.
Thus, return disposition codes with location directives are the correct configuration because they enforce structured return workflows, ensure accurate material routing, support compliance, and integrate deeply with warehouse operations.
Question 117:
A global manufacturer wants to increase planning accuracy by using multiple master planning setups. They need separate planning runs for different business units such as aftermarket service, OEM production, and spare parts distribution. Each plan must have different coverage settings, forecast models, and time fences. What should you configure?
A) Multiple master planning scenarios
B) Multiple item allocation keys
C) Safety stock journals
D) Vendor lead-time calendars
Answer:
A
Explanation:
Multiple master planning scenarios are the correct configuration because they allow organizations to run different planning simulations or operational plans for separate business units. Option A enables the company to configure separate planning strategies, each with its own coverage rules, forecast inclusion, delays, time fences, and item allocation policies. This is critical for large organizations where different divisions operate independently and have unique supply chain characteristics.
Option B, item allocation keys, assist in distributing forecasts but do not create independent planning environments.
Option C, safety stock journals, support inventory optimization but do not create distinct planning models.
Option D, vendor lead-time calendars, improve accuracy but are not designed for multi-scenario planning.
Master planning scenarios also support what-if analysis. Planners can run simulations to test the impact of demand spikes, supplier delays, or inventory reductions. This helps management make informed decisions about production schedules, purchasing, or resource planning. Each scenario can hold its own planned orders, providing a sandbox environment that does not affect real operational data.
Additionally, multiple master planning scenarios support different levels of automation. For example, aftermarket service planning may run daily, while OEM production planning may run weekly. Each scenario can be assigned its own batch job schedule to align with business needs.
Coverage groups also differ between business units. Some units may plan order-based replenishment with minimal safety stock, while others may require high safety stock levels to ensure service availability. By configuring separate scenarios, planners can tailor settings to each operational environment.
Thus, multiple master planning scenarios are the correct solution because they support independent planning structures, customizable settings, and scenario-based analysis for complex organizations.
Question 118:
A warehouse uses Dynamics 365 Supply Chain Management and needs to improve picking accuracy for items with multiple variants such as size, color, and style. Workers often pick incorrect variants because bins contain several attribute combinations. The company wants the mobile device to display variant-specific information, and the system must require workers to scan the correct variant before confirming a pick. What should you configure?
A) Variant picking and item confirmation
B) Batch attribute validation
C) Unit sequence groups
D) Work priority rules
Answer:
A
Explanation:
Variant picking and item confirmation is the correct configuration because it ensures the warehouse mobile device validates the exact variant that the worker picks. Option A provides a structured method to prevent picking mistakes for items with multiple variants such as apparel, footwear, electronics, or configurable goods. By requiring variant scanning and confirmation, the system prevents common errors where workers accidentally pick the wrong size, color, or model.
Option B, batch attribute validation, applies to batch-controlled products and does not handle product variants.
Option C, unit sequence groups, manage units of measure but do not enforce variant correctness.
Option D, work priority rules, organize work ordering, not picking accuracy.
Variant picking enhances picking workflows by displaying required variant attributes such as size and color fields. The worker must select or scan the correct variant code. If the worker attempts to pick an incorrect variant, the mobile device rejects the confirmation and prompts the worker to recheck the bin or verify the label. This strengthens inventory accuracy and reduces customer complaints related to wrong-item shipments.
The system also supports variant-specific barcodes, which can be assigned automatically through product configurations. Scanning ensures precise validation, improving traceability and reducing post-shipment returns.
Thus, variant picking and item confirmation is the correct configuration because it enforces variant accuracy, prevents picking errors, and improves operational reliability.
Question 119:
A company wants to ensure that production orders always use the most up-to-date BOM and routing versions. Engineers frequently update BOMs due to design improvements, and planners want production to reflect these updates automatically. The system must prevent outdated versions from being used accidentally. What should you configure?
A) BOM and route version control with activation dates
B) Production order status blocking rules
C) Material substitution rules
D) Inventory dimensions for engineering changes
Answer:
A
Explanation:
BOM and route version control with activation dates is the correct configuration because it ensures that production orders automatically reference the correct version of the bill of materials and routing based on effective dates. Option A ensures that engineers can update product structures and operations, and planners can rely on the system always pulling the correct active version.
Option B, production order status blocking rules, restricts actions based on production status but does not enforce version correctness.
Option C, material substitution rules, provide alternatives but do not enforce version usage.
Option D, inventory dimensions for engineering changes, support traceability but do not control active BOM versions.
With BOM and route version control, engineers can set future activation dates for the new version. When that date arrives, the system automatically replaces the old version in all new production orders. This process allows companies to plan engineering changes and ensure a smooth transition.
Master planning also respects version activation. Planned orders generated after the activation date use the new version, ensuring accurate requirements. Production costing and material allocation also update automatically.
Thus, version control with activation dates is the correct solution.
Question 120:
A large distribution center wants to optimize outbound shipments by grouping orders based on shipping carriers and destinations. The system must automatically assign orders to loads, suggest truck capacity usage, and allow planners to build multi-stop routes. What should you configure?
A) Load building workbench
B) Wave templates
C) Transportation allocation keys
D) Shipment reservation hierarchies
Answer:
A
Explanation:
The load building workbench is the correct configuration because it enables planners to build loads, assign orders based on shipping constraints, and optimize carrier utilization. Option A supports grouping orders by delivery address, route, or carrier, and helps improve transportation efficiency.
The load building workbench allows companies to define rules for load creation, such as weight limits, volume limits, or container types. The system automatically suggests optimal combinations of orders to maximize truck utilization. This is especially valuable in high-volume distribution operations where transportation costs represent a major expense.
Option B, wave templates, create picking work but do not handle load optimization.
Option C, transportation allocation keys, distribute transportation costs but do not build loads.
Option D, shipment reservation hierarchies, relate to inventory allocation, not transportation.
With the load building workbench, planners can also create multi-stop routes. This allows grouping orders by geographic region to minimize driving distance. The system provides visibility into load capacity and supports manual and automated adjustments.
Thus, the load building workbench is the correct solution because it optimizes transportation planning, reduces costs, and enhances operational control.
