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Question 161:
A company wants to streamline its inbound put-away process by evaluating storage conditions, item attributes, and warehouse zone capacities. The system must automatically choose put-away locations based on product group classification, hazardous material flags, and available space. The warehouse uses multiple temperature zones, and items must be routed to the correct zone during receiving. What should you configure?
A) Location directives with multi-criteria put-away rules
B) Fixed locations only
C) Manual selection of locations during receiving
D) Randomized put-away ignoring item attributes
Answer:
A
Explanation:
Location directives with multi-criteria put-away rules is the correct configuration because it enables automated decision-making during the put-away process, evaluating multiple variables such as product group, hazardous material flags, temperature requirements, and capacity constraints. Option A provides the functionality needed to automatically assign the correct storage location without manual intervention, which improves accuracy and warehouse efficiency.
Warehouse environments often require specific storage rules. Temperature-sensitive items must be stored in refrigerated zones, flammable products must go into hazardous-material–compliant areas, and high-turnover items may need to be placed near picking zones. Location directives allow the system to use queries to filter locations according to criteria such as zone type, item attributes, or location profile. This ensures that put-away tasks always comply with regulatory and operational requirements.
Option B, fixed locations only, restricts each item to a single storage location, which is not practical for multi-zone environments or facilities with dynamic turnover and replenishment. Fixed locations also fail to consider capacity constraints or item attribute conditions.
Option C, manual location selection, places the burden on warehouse workers and increases the risk of human error. Workers may mistakenly choose the wrong zone, leading to compliance violations, storage inefficiencies, or safety hazards.
Option D, randomized put-away, does not account for temperature or hazardous material requirements and leads to disorganized storage patterns.
Location directives support conditional logic. For example, the system can automatically route refrigerated items to specific temperature-controlled zones and simultaneously check that space is available before creating work. If a zone is full, the system can evaluate secondary zones or escalate the work to a supervisor.
Work templates further support this process by defining how warehouse workers execute the put-away. When work is created from the directive, workers follow mobile device instructions that guide them to the correct pick and put locations. Because these tasks originate from system rules instead of manual selection, consistency and accuracy increase dramatically.
Location directives can also evaluate product groups. For instance, hazardous materials may require a different storage structure than ambient items. The directive queries evaluate flags such as hazard class or regulatory codes and ensure proper storage placement.
Furthermore, capacity checks prevent overfilling storage areas. The system evaluates whether the selected location has capacity for the incoming quantity. If not, it proceeds to the next acceptable location based on rules.
Thus, location directives with multi-criteria put-away rules is the correct solution because it automates complex storage decisions, ensures compliance with regulatory requirements, increases storage efficiency, and reduces worker errors.
Question 162:
A company needs to manage product variants with different sizes, colors, and styles. They want to maintain a single product master but generate multiple variant-specific SKUs. Inventory, pricing, and warehouse processes must be tracked at the variant level. Master planning must consider individual variant demand. What should you configure?
A) Product master with product variants and variant-specific dimensions
B) A separate released product for each variant
C) Only attribute-based pricing without variants
D) Non-stocked products with manual tracking
Answer:
A
Explanation:
Product master with product variants and variant-specific dimensions is the correct configuration because it allows the company to maintain a centralized product definition while generating individual SKUs for each combination of size, color, and style. Option A provides robust variant management needed for retail, apparel, and manufacturing industries where many variations of one product exist but share common characteristics such as BOM or route structures.
Product variants reduce data redundancy. Rather than creating separate products for every size or color, the system uses a product master with dimension groups. Dimension groups include attributes like size, color, style, configuration, or custom attributes. Each unique combination becomes a distinct SKU with its own on-hand inventory, forecasting needs, pricing, and warehouse tracking.
Option B, separate released products, increases administrative burden. Maintaining hundreds of products individually becomes unmanageable and leads to higher data complexity and maintenance costs.
Option C, attribute-based pricing without variants, cannot track inventory at the variant level and is insufficient for planning or warehouse operations.
Option D, non-stocked products, do not support inventory or warehouse tracking and are inappropriate for variant-based businesses.
Variant-specific tracking is crucial for accurate inventory management. Each variant has its own on-hand quantity, replenishment parameters, sales forecasting data, and costing. Warehouse workers pick variants based on color or size, using scanning to ensure accuracy.
Master planning supports variant-level demand. The system evaluates forecasts and sales orders per variant and generates planned production or purchase orders accordingly. This ensures that high-demand variants are replenished without overstocking less popular variations.
Pricing can also be variant-based. For example, certain colors or sizes may have surcharges. Variant groups allow flexible pricing and promotional structures.
Thus, product masters with variants provide the correct balance of structure, flexibility, and inventory visibility.
Question 163:
A company operates multiple warehouses and needs real-time visibility into inventory aging for perishable goods. They must analyze how long items have remained in storage, identify batches near expiration, and ensure FIFO or FEFO processes are followed. They also need reporting that breaks inventory down by aging buckets. What should you configure?
A) Inventory aging reports with batch tracking
B) Standard on-hand list only
C) Transfer journals for aging control
D) Production consumption journals
Answer:
A
Explanation:
Inventory aging reports with batch tracking is the correct configuration because it provides detailed visibility into how long inventory has been in the warehouse and how close it is to expiration. Option A allows businesses to classify inventory based on aging buckets, ensuring compliance with FIFO or FEFO strategies and improving decision-making related to purchasing, production, and outbound fulfillment.
Perishable goods require precise monitoring. Businesses need to know not only what inventory they have but how old it is. Inventory aging reports break quantities into aging brackets such as 0–30 days, 31–60 days, 61–90 days, or custom ranges. When combined with batch tracking, the system can identify which batches must be prioritized for outbound picking.
Option B, standard on-hand lists, provides quantity visibility but does not analyze aging.
Option C, transfer journals, move inventory but do not provide aging insights.
Option D, production consumption journals, track consumption but do not support inventory aging.
Batch tracking links each unit to its production date, expiration date, or receipt date. Aging reports then evaluate batches based on these data points. Companies can identify obsolete or soon-to-expire items, preventing waste and optimizing replenishment planning.
Warehouse processes, such as FEFO picking, integrate directly with batch aging visibility. When a worker attempts to pick a batch, the system validates that the batch meets FEFO rules. This ensures regulatory compliance and reduces risk, particularly in industries such as food production, pharmaceuticals, and chemicals.
Thus, inventory aging reports with batch tracking is the correct configuration because it ensures visibility, compliance, and efficient inventory turnover.
Question 164:
A company needs to ensure accurate replenishment for fast-moving pick locations. They want the system to calculate replenishment needs based on both minimum levels and demand forecasts. Warehouse workers must receive automated work instructions when pick-face inventory drops below threshold or when future waves require replenishment. What should you configure?
A) Min-max and demand-based replenishment templates
B) Manual replenishment tasks only
C) Transfer orders created manually
D) Inventory adjustments based on worker discretion
Answer:
A
Explanation:
Min-max and demand-based replenishment templates are the correct configuration because they allow the system to evaluate both real-time inventory levels and future demand before generating replenishment work. Option A ensures that pick-face locations stay stocked for both current and upcoming orders.
Min-max replenishment triggers when inventory falls below a defined minimum level. Demand-based replenishment evaluates upcoming waves or production requirements and proactively stocks locations before shortages occur.
Option B, manual replenishment tasks, rely on workers noticing shortages, which is inefficient and prone to error.
Option C, manual transfer orders, are too slow and cannot integrate with wave demand.
Option D, inventory adjustments, do not generate work and are not suitable for replenishment.
Replenishment templates generate automated work based on rules. This includes full pallet replenishment, case picking, or piece picking. The system then sends work to mobile devices, ensuring workers follow a consistent path of picking from bulk storage and replenishing the pick-face zone.
Demand-based replenishment also ensures that waves do not fail due to shortages. Before wave execution, the system can trigger replenishment to ensure sufficient stock exists.
Thus, min-max and demand-based replenishment templates provide both reactive and proactive replenishment control.
Question 165:
A manufacturer wants better visibility into its material shortages during production planning. Planners must be able to see which materials are short, which orders are affected, and whether shortages can be resolved via existing purchase orders or transfers. The solution must display pegging relationships between supply and demand. What should you configure?
A) Master planning with pegging analysis
B) Simple on-hand inventory list
C) Counting journals for shortages
D) Production journals only
Answer:
A
Explanation:
Master planning with pegging analysis is the correct configuration because it provides planners with full visibility into material shortages, identifies which orders are affected, and shows supply sources such as purchase orders, production orders, or transfers. Pegging connects specific supply to specific demand, making it an essential tool for production planning.
Option B only shows quantities without linking supply and demand.
Option C tracks adjustments but does not show shortages.
Option D allows consumption posting but does not analyze shortages.
Pegging enables planners to trace shortages back to the root cause. If a component is delayed, pegging highlights which production orders or sales orders will be impacted. It also identifies possible resolutions, such as expediting an existing purchase order, rescheduling a transfer, or adjusting production plans.
Master planning calculates net requirements based on BOM structures, safety stock, lead times, and forecasts. Pegging then visualizes the results, enabling proactive decision-making.
Thus, master planning with pegging analysis is the correct solution for managing and resolving material shortages effectively.
Question 166:
A company operates several distribution centers and wants to improve transportation efficiency. They need to plan outbound shipments using load planning workbenches, consolidate multiple sales orders into a single load, and assign loads to specific carriers based on delivery deadlines and freight charges. The company must also be able to perform rate shopping to select the most cost-effective carrier. What should you configure?
A) Transportation management with load planning and rate engines
B) Transfer orders with fixed routes
C) Manual carrier assignment on sales orders
D) Generic shipping labels without transportation setup
Answer:
A
Explanation:
Transportation management with load planning and rate engines is the correct configuration because it provides the functionality required to manage complex outbound logistics, consolidate orders, evaluate carrier rates, and optimize shipment execution. Option A aligns with advanced warehouse and distribution operations where efficiency, cost control, and delivery accuracy are critical.
Transportation management allows companies to use the load planning workbench to consolidate multiple orders into a single load. This is especially important when orders share delivery locations or routes. Instead of shipping items separately, planners can build loads that maximize trailer utilization and reduce transportation costs. Load planning tools also allow planners to assign loads to specific trucks, trailers, or container types.
Rate engines are another critical part of transportation management. They allow the system to evaluate multiple carriers and freight charges automatically. When planners run rate shopping, the system compares contracted rates, shipment weight, distance, fuel surcharges, and accessorial fees. The system then recommends the most cost-effective carrier that still meets the delivery timeline. This automation significantly reduces the manual effort and risk associated with carrier selection.
Option B, transfer orders with fixed routes, does not integrate with carrier rate shopping or provide the ability to consolidate multiple sales orders into optimized loads.
Option C, manual carrier assignment on sales orders, is prone to human error and contradicts the requirement for automated carrier evaluation and consolidation.
Option D, generic shipping labels, does not handle routing, carrier selection, or load optimization.
Transportation management also integrates with warehouse management. When loads are planned, wave execution processes can ensure that picking, packing, and staging are synchronized with load departure times. This ensures timely loading of trucks and reduces the risk of late shipments.
Additionally, transportation management supports freight reconciliation. After shipments are completed, companies can match the carrier invoice with planned transportation charges. This helps identify overbilling or discrepancies.
Thus, configuring transportation management with load planning and rate engines is essential for companies looking to optimize outbound shipments, reduce freight expense, and improve operational efficiency.
Question 167:
A manufacturing company needs to automate quality checks for critical components. When materials arrive at the warehouse, the system must automatically generate quality orders based on item sampling rules. Production must not start until the components pass inspection. If inspection fails, materials must be quarantined and cannot be used. What should you configure?
A) Quality management with automatic quality orders and quarantine processing
B) Manual inspection using counting journals
C) Batch attributes only without quality rules
D) Vendor returns with no inspection step
Answer:
A
Explanation:
Quality management with automatic quality orders and quarantine processing is the correct configuration because it fulfills the requirement to generate quality orders automatically at receiving and enforce inspection results before materials can be used in production. Option A supports a structured quality control workflow that integrates with warehouse receiving and production processes.
Automatic quality orders allow the system to evaluate sampling rules. For example, an item may require inspection for every lot, every tenth pallet, or based on percentage sampling. Sampling rules ensure that inspections are consistent and compliant with regulatory or internal standards.
Once items are received, the system automatically generates a quality order. Workers perform tests such as measurements, chemical analyses, visual inspections, or functional tests. The results determine whether materials pass or fail.
If materials fail inspection, quarantine management ensures that inventory status changes so that the materials cannot be used in production. Quarantine rules may route failed materials to a quarantine warehouse or location where they remain blocked until further action such as rework, vendor return, or disposal. This ensures that defective materials never enter production processes.
Option B, manual inspection with counting journals, does not provide automated quality workflows or quarantine.
Option C, batch attributes alone, tracks qualities such as potency or color but does not enforce mandatory inspections.
Option D, vendor returns without inspection, does not prevent non-inspected goods from entering inventory.
Quality management integrates with production planning. Production orders cannot start if required components are on quality hold. This prevents the risk of manufacturing defects or production stoppages due to poor material quality. The system ensures that only approved materials progress into production.
Additionally, quality management provides full traceability. The system records inspection results, test parameters, and failure reasons, enabling detailed audit trails. These records support compliance with industry standards in pharmaceuticals, food production, aerospace, and electronics.
Thus, configuring quality management with automatic quality orders and quarantine processing is necessary to ensure that materials meet quality standards before entering production and to prevent the use of defective components.
Question 168:
A company manufactures custom products requiring configuration during order entry. Each order may contain different dimensions, optional components, and configurable BOM structures. Sales staff must configure products using guided rules, and production must receive a fully defined BOM and route for each configured item. What should you configure?
A) Product configuration models with constraints and BOM generation
B) Standard BOM without configuration
C) Product variants only
D) Manual BOM creation for every order
Answer:
A
Explanation:
Product configuration models with constraints and BOM generation is the correct solution because it allows dynamic product customization during order entry. Option A supports scenarios where each customer requires a unique product specification, but the company wants to avoid creating thousands of static BOMs or product variants.
Product configuration models provide a guided interface for sales staff. They select features such as size, materials, optional components, colors, or functional attributes. The system enforces constraints to prevent invalid combinations. For example, if an item uses motor type A, only compatible control units are allowed.
Once configuration is completed, the system automatically generates a configured BOM and route. These contain all components and operations required for the custom order. This eliminates the need for manually creating BOMs, which would be slow and error-prone.
Option B, standard BOMs, cannot support customization and do not allow dynamic component selection.
Option C, product variants, is for limited dimension-based variation and cannot support deep customization scenarios requiring rules or nested logic.
Option D, manual BOM creation, introduces inefficiency and risks inaccuracies in custom manufacturing.
Product configuration models integrate with sales, production, costing, and master planning:
Sales orders store the configuration
• BOM and route derive from configuration rules
• Costing dynamically calculates configured cost
• Planning evaluates requirements per configured item
This provides flexibility while maintaining control and automation.
Thus, product configuration models with constraints and BOM generation provide the most effective system framework for managing custom products.
Question 169:
A distribution company wants to automate picking using cluster picking. Workers must be able to pick items for multiple orders at once using a mobile device. The system must group orders into clusters based on criteria like shipping method or zone. The picking path must be optimized to minimize travel distance. What should you configure?
A) Cluster picking configuration with cluster profiles
B) Only wave picking without clusters
C) Picking lists without warehouse work
D) Manual sorting after picking
Answer:
A
Explanation:
Cluster picking configuration with cluster profiles is the correct solution because it supports picking for multiple orders simultaneously while optimizing travel paths and grouping logic. Option A provides the functionality to organize orders into clusters based on criteria such as shipping method, customer location, or warehouse zone.
Cluster picking allows workers to pick items for multiple orders at once using a cart or trolley with multiple containers. Each container corresponds to a different order. This increases efficiency by reducing travel time in the warehouse.
Cluster profiles define how clusters are created, how many orders they contain, and how they are assigned to workers. They also define sorting logic, container limits, and closing rules. The system automatically generates cluster picking work through wave processing.
Option B, wave picking without clusters, picks one order at a time, reducing efficiency.
Option C bypasses warehouse work entirely and does not support mobile device cluster picking.
Option D, manual sorting, increases labor effort and causes errors.
Cluster picking uses system-generated instructions to guide workers to each pick location. Mobile devices track each pick and confirm quantity and container assignment. This prevents misplacement of items into the wrong order container.
Travel optimization is another key benefit. The system analyzes pick locations and arranges them into the most efficient sequence. This minimizes distance traveled and increases throughput.
Thus, cluster picking configuration with cluster profiles provides the automation and optimization necessary for efficient multi-order picking.
Question 170:
A company requires full traceability for items with strict tracking requirements. They must track items by batch and serial number from receipt through production and shipment. During picking, workers must scan batch and serial numbers, and the system must validate that they match reserved inventory. What should you configure?
A) Tracking dimensions with batch and serial control and verification rules
B) Item model groups without tracking
C) Inventory adjustments for batch tracking
D) License plates only
Answer:
A
Explanation:
Tracking dimensions with batch and serial control and verification rules is the correct configuration because it ensures complete traceability and strict validation during all warehouse and production processes. Option A enforces the tracking requirements at receipt, transfer, production consumption, production reporting, and shipment.
Batch and serial tracking support regulatory compliance, product safety, recall management, and warranty control. Batch numbers typically track production lot, expiration dates, or material attributes. Serial tracking ensures uniqueness for each unit.
Verification rules ensure that workers must scan the correct batch and serial number during picking, preventing mistakes. If a worker attempts to pick a batch or serial that does not match the reservation, the system rejects it.
Option B, item model groups without tracking, cannot provide traceability.
Option C tracks only adjustments and not operational processes.
Option D, license plates, track pallets or containers, not individual batch or serial numbers.
Tracking dimensions integrate with reservations, master planning, quality management, and warehouse work. They ensure that every movement is recorded precisely.
Thus, configuring batch and serial tracking with verification rules provides the complete traceability and validation required.
Question 171:
A distribution company wants to implement a wave automation strategy. They want waves to be automatically created, processed, and released whenever sales orders are created. The system must evaluate shipping methods, order priority, and warehouse zones to determine which wave template to use. Workers must not manually trigger waves. What should you configure?
A) Wave process methods with automatic wave creation rules
B) Manual wave creation only
C) Batch jobs for sales order picking lists
D) Work templates without wave templates
Answer:
A
Explanation:
Wave process methods with automatic wave creation rules is the correct configuration because it enables the system to automatically create, process, and release waves without the need for manual user intervention. Option A provides the automation needed to ensure that as soon as sales orders are created or released to the warehouse, the appropriate wave template is selected based on predefined criteria such as shipping method, delivery time, customer priority, warehouse zone, or item characteristics.
Wave automation is essential for high-volume distribution centers where speed and accuracy are critical. The goal is to streamline the order fulfillment cycle by eliminating manual steps. When sales orders are created or released, wave automation evaluates conditions defined in wave templates and wave process methods. These conditions may include transportation mode, customer type, order type, warehouse zone, inventory status, and more. Once a matching template is found, the system automatically generates a wave.
Wave process methods define the sequence in which tasks occur during wave processing. These may include allocation, replenishment, containerization, work creation, and wave release. Automatic processing ensures that as soon as the wave is created, the system allocates inventory and creates picking work without requiring manual oversight.
Option B, manual wave creation only, contradicts the requirement for automation and creates unnecessary operational delays. In high-volume operations, manual wave triggering is inefficient and prone to human error.
Option C, batch jobs for picking lists, can automate printing or generation of documents but does not automatically create or process waves.
Option D, work templates alone, support work creation but cannot initiate waves. Work templates are used after waves are processed, not before.
Automatic wave creation ensures that orders begin processing immediately, reducing order-to-dispatch time. It also standardizes processing expectations, ensuring that priority orders receive faster attention and that similar orders are grouped efficiently. In large warehouses, this prevents bottlenecks and helps maintain a continuous operational flow.
Wave automation also supports complex fulfillment strategies such as zone picking, cluster picking, and containerization. When the wave is processed, work is created based on warehouse layout and picking logic, ensuring efficient movement.
Additionally, automatic waves support replenishment logic. If the wave identifies inventory shortages, replenishment work is triggered automatically before picking begins. This prevents picking failures and delays.
Thus, wave process methods with automatic wave creation rules is the correct configuration because it provides comprehensive automation, eliminates manual tasks, improves efficiency, and ensures rapid fulfillment operations.
Question 172:
A manufacturer needs to monitor machine utilization on production lines. They want to record run time, stop time, and changeover time for each resource. Production managers need reports showing utilization percentages, downtime reasons, and comparisons between planned versus actual run times. Workers must enter downtime codes through the production floor execution interface. What should you configure?
A) Production floor execution with resource performance and downtime registration
B) Route groups only
C) Job card journals without downtime tracking
D) Manual spreadsheets for performance tracking
Answer:
A
Explanation:
Production floor execution with resource performance and downtime registration is the correct configuration because it supports tracking machine usage, recording downtime, capturing run and stop times, and providing reports on resource utilization. Option A directly addresses the requirement for detailed performance monitoring across production lines.
Production floor execution provides a modern interface for production workers. Through it, workers can start, stop, and pause jobs. When equipment encounters downtime, workers can enter downtime reasons, such as maintenance issues, material shortages, tool changes, or operator breaks. These entries are tied to resource calendars and production orders, providing accurate insights.
Option B, route groups, define run time and setup time parameters, but they do not track real-time machine usage or downtime.
Option C, job card journals, support labor entry and consumption posting but lack structured downtime reporting.
Option D, manual spreadsheets, are error-prone, disconnected from Dynamics 365, and do not meet reporting requirements.
Resource performance tracking provides several benefits:
Run vs. stop time tracking
• Efficiency and performance metrics
• Downtime categorization
• Calculation of utilization percentage
• Comparison of planned versus actual time
• Bottleneck identification
Resource utilization calculations help manufacturers identify inefficiencies. For example, if a machine is idle frequently due to material shortages, planning teams can adjust replenishment strategies. If downtime increases due to mechanical failures, maintenance schedules can be revised.
Production floor execution also integrates with production scheduling. Actual run times influence future production schedules and job sequencing. This helps improve accuracy in planning and reduces the likelihood of schedule overruns.
Downtime entries create a historical dataset that can be analyzed for trends. Production managers can identify which machines experience the most downtime and which downtime reasons are most frequent. This supports continuous improvement initiatives.
Thus, configuring production floor execution with resource performance and downtime registration is essential for capturing accurate production data and improving manufacturing efficiency.
Question 173:
A company needs to track the cost of manufacturing each finished good. Costs include materials, labor, machine time, overhead, and subcontracting. They must calculate the actual cost of production orders and compare it with estimated cost. The system must show variance categories such as quantity variance, price variance, and substitution variance. What should you configure?
A) Production order costing with cost categories and variance reporting
B) Standard cost updates only
C) Sales price adjustments
D) Inventory valuation without production costing
Answer:
A
Explanation:
Production order costing with cost categories and variance reporting is the correct configuration because it provides detailed cost tracking for every stage of production. Option A supports capturing material consumption, labor time, machine operations, subcontracting charges, and overhead. It also calculates actual versus estimated costs and categorizes variances.
Accurate production costing is essential for understanding profitability, controlling manufacturing performance, and supporting financial reporting. Production orders begin with an estimated cost based on BOM and route settings. As the production process occurs, actual consumption is recorded. Materials may be overused or underused, prices may differ from expectations, and routing times may vary.
Cost categories define the types of costs included in production:
Material cost
• Labor cost
• Machine cost
• Subcontracting cost
• Overhead cost
Variance reporting breaks differences into meaningful categories. Quantity variance occurs when more or less material is used than planned. Price variance occurs when actual prices differ from estimated prices. Substitution variance tracks when an alternate component replaces a planned one.
Option B, standard cost updates, define product costs but do not track actual production variances.
Option C, sales price adjustments, have nothing to do with production costing.
Option D, inventory valuation alone, cannot analyze production-specific costs.
Production costing drives financial accuracy. When production orders are ended, cost calculations determine the final cost of the finished goods. These costs flow into the general ledger, affecting inventory values and cost of goods sold.
Variance reports allow managers to investigate unusual deviations. For example, frequent material overconsumption could indicate poor training, inaccurate BOMs, or defective components.
Thus, production order costing with cost categories and variance reporting is the correct solution.
Question 174:
A company wants to implement automatic cycle counting. They need to trigger cycle counts based on inventory movement, negative on-hand adjustments, and ABC classification. High-value items must be counted frequently, while low-value items can be counted monthly. The system must schedule cycle counts without shutting down warehouse operations. What should you configure?
A) Cycle counting thresholds and ABC classification–based counting journals
B) Full physical inventory
C) Manual inventory adjustments only
D) Excel-based count sheets
Answer:
A
Explanation:
Cycle counting thresholds and ABC classification–based counting journals is the correct configuration because it allows continuous, automated counting of inventory without shutting down warehouse operations. Cycle counting improves accuracy by counting select items regularly rather than performing a full physical inventory.
ABC classification is a method of prioritizing items based on value, velocity, or importance. Category A items are counted most frequently, B items less often, and C items least frequently. This ensures efficient use of labor and reduces risk of discrepancies in critical inventory.
Cycle counting thresholds define system triggers for count creation. For example:
Count when inventory falls below zero
• Count when changes exceed a configured percentage
• Count after certain transaction types such as transfers or adjustments
Option B, full physical inventory, requires shutting down operations and does not support ongoing accuracy.
Option C, manual inventory adjustments, do not provide structured counting or triggers.
Option D, Excel count sheets, require manual work and do not integrate with system transactions.
Cycle counting journals allow workers to count and enter quantities directly from mobile devices. The system then compares counted quantities to expected on-hand quantities and posts adjustments.
Thus, configuring cycle counting thresholds with ABC classification ensures continuous accuracy while keeping operations running.
Question 175:
A company processes large inbound shipments and wants to optimize receiving efficiency. They need the system to automatically break down purchase orders into receiving work using work templates. Workers should use mobile devices to perform receiving tasks, and the system must direct them to the correct receiving dock based on product type and vendor. What should you configure?
A) Work templates and location directives for purchase order receiving
B) Manual receiving without work
C) Counting journals
D) Inventory adjustments
Answer:
A
Explanation:
Work templates and location directives for purchase order receiving is the correct configuration because it enables automated work creation, efficient receiving processes, and system-directed warehouse tasks. Option A ensures that when purchase orders are received, the system creates work that guides workers through the correct receiving steps.
Work templates define how receiving work is structured, such as pick steps, put steps, break points, and required scans. For high-volume inbound operations, automated work ensures consistency and eliminates manual errors. When a purchase order line is registered, the system generates work tasks such as unloading, sorting, and put-away.
Location directives determine where received items should be placed. They evaluate criteria such as:
Product type
• Vendor
• Storage requirements
• Dock assignments
• Capacity of receiving locations
For example, hazardous materials may be directed to a special receiving dock, while standard items are routed to a general receiving bay.
Option B, manual receiving, is error-prone and does not support mobile device workflows.
Option C, counting journals, track adjustments and do not support receiving processes.
Option D, inventory adjustments, bypass purchasing and do not provide structured receiving.
Receiving via mobile devices increases accuracy. Workers scan items, license plates, and locations, ensuring correct receiving operations. The system verifies that quantities match the purchase order and directs workers to appropriate put-away locations.
Thus, work templates and location directives provide the automation and guidance required for efficient receiving.
Question 176:
A company wants to automate release of materials to the production floor. They require the system to create warehouse work for picking materials, route them to production staging areas, and ensure that staging locations are selected automatically based on the production line. They also want the system to validate that materials are available before production starts. What should you configure?
A) Material staging through production release with location directives and work templates
B) Production journals only without warehouse work
C) Manual picking from the warehouse
D) Transfer orders for production material movement
Answer:
A
Explanation:
Material staging through production release with location directives and work templates is the correct configuration because it ensures a controlled and systematic process for releasing materials to the production floor. Option A provides automation, consistency, and accuracy, which are essential for efficient manufacturing operations.
When production orders are released, the system must reserve materials, generate picking work, and assign appropriate staging locations. Location directives define the rules used to determine where materials should be picked from and where they should be placed for production staging. These rules can evaluate production line assignments, item types, warehouse zones, batch availability, location profiles, and more. This ensures that materials flow correctly through the warehouse and arrive at the correct production line.
Work templates define how warehouse work is structured. They determine the sequence of actions workers must follow, such as picking from bulk locations and putting materials in the correct staging areas. These templates ensure that workers perform tasks using mobile devices, which improves accuracy and reduces manual errors.
Option B, production journals only, does not involve warehouse work or location directive automation. It cannot stage materials or generate picking tasks, leading to inventory inaccuracies and uncoordinated material flow.
Option C, manual picking, is inefficient and prone to errors. Workers may accidentally pick materials for the wrong production line or pick incorrect quantities.
Option D, transfer orders, are designed for movement between warehouses, not for staging materials within a production-integrated warehouse.
Material staging automation ensures that production schedules are aligned with material availability. If materials are not available, the system can notify planners or delay job release. This prevents disruptions on the production line and reduces downtime caused by missing components.
Furthermore, the combination of location directives and work templates ensures that the system adapts to changing inventory conditions. If material stocks run low in one location, the directive can identify alternative locations. This flexibility is critical for dynamic manufacturing environments.
Thus, material staging through production release with location directives and work templates is the correct configuration because it supports automated material flow, resource coordination, inventory accuracy, and production efficiency.
Question 177:
A company needs to optimize outbound order fulfillment by grouping similar orders together. They want the system to automatically assign orders to waves based on shipping method, carrier, delivery date, and item characteristics. They also need to support multi-stage picking, including zone picking and consolidation. What should you configure?
A) Wave templates with query-based filtering and multi-stage wave process methods
B) Manual order selection during wave creation
C) Simple picking lists without waves
D) Load building templates without wave setup
Answer:
A
Explanation:
Wave templates with query-based filtering and multi-stage wave process methods is the correct configuration because it provides the automation and flexibility needed to group orders based on complex criteria and support advanced picking strategies such as zone picking, batch picking, and consolidation.
Wave templates allow the system to automatically evaluate orders and assign them to appropriate waves. Query-based filtering enables conditions such as shipping method, carrier, delivery date, customer region, warehouse zone, and even specific item attributes. This ensures that similar orders are processed together, improving efficiency and reducing travel time.
Wave process methods define the sequence of tasks performed during wave execution, including allocation, replenishment, sorting, zone picking, and consolidation. Multi-stage picking is essential for large warehouses where different zones handle different types of inventory. Workers in each zone pick their assigned items, and the system directs items to consolidation points where they are merged before packing or loading.
Option B, manual order selection, increases the risk of errors and slows down operations.
Option C, simple picking lists, cannot support advanced warehouse operations or automated grouping.
Option D, load building templates, affect outbound transportation but do not handle picking or wave assignment.
Wave automation ensures that operations run smoothly without requiring constant human oversight. When wave templates are triggered, the system immediately processes the wave, creating picking work and notifying warehouse workers through mobile devices.
Multi-stage picking also improves efficiency by enabling multiple workers to contribute to an order simultaneously without bottlenecking in a single area. Zone picking supports specialization: workers become experts in their assigned zones and operate more efficiently.
Thus, wave templates with query-based filtering and multi-stage wave process methods offer the automation and structure needed for high-performance outbound logistics.
Question 178:
A company must track and control scrap during production. They need to record scrap per operation, track scrap reasons, and ensure that material consumption is adjusted accordingly. Scrap must be accounted for financially, and planners must see the impact of scrap on production variance. What should you configure?
A) Scrap registration in production orders with scrap reasons and consumption adjustments
B) Counting journals to record scrap
C) Manual inventory adjustments for scrap
D) BOM lines without scrap reporting
Answer:
A
Explanation:
Scrap registration in production orders with scrap reasons and consumption adjustments is the correct configuration because it provides structured and accurate tracking of scrap within the production process. Option A supports recording scrap at operation-level granularity, assigning reasons, adjusting material consumption, and generating financial impact through production costing.
Scrap is an unavoidable part of manufacturing, but it must be carefully tracked to understand inefficiencies, reduce waste, and control costs. Scrap registration allows workers to report scrap quantities while reporting progress or completing production jobs. The system records scrap in separate transactions, ensuring that scrap is not counted as good output.
Scrap reasons help categorize waste. For example, scrap may be due to machine malfunction, operator error, material defect, or design issues. This information is crucial for identifying root causes and implementing corrective actions.
Scrap registration also adjusts material consumption. If scrap requires replacing components, the system records additional consumption accordingly. This ensures accurate costing and avoids misleading variances.
Option B, counting journals, only adjust inventory and do not tie scrap to production processes or operations.
Option C, manual adjustments, lack structure and do not support variance analysis.
Option D, BOM lines alone, do not provide scrap recording capabilities.
Scrap affects several areas:
Material usage variance
• Operation time variance (if scrap causes rework)
• Production costing
• Efficiency metrics
• Quality reporting
Production managers use scrap data to evaluate performance and refine BOM accuracy. If scrap numbers consistently exceed predicted levels, it may indicate design flaws or training needs.
Thus, scrap registration in production orders with scrap reasons and consumption adjustments is necessary for robust production control and cost accuracy.
Question 179:
A global company wants to track landed costs on imported goods. They need to include freight, customs, insurance, port charges, and other fees in the total cost of inventory. Costs must be allocated across multiple purchase orders in a container. They require tracking of voyage, shipment, and cost accrual. What should you configure?
A) Landed cost module with voyages, container tracking, and cost allocations
B) Standard purchase orders without extra charges
C) Additional cost added via inventory adjustments
D) Freight reconciliation only
Answer:
A
Explanation:
The landed cost module with voyages, container tracking, and cost allocations is the correct configuration because it provides end-to-end tracking of international shipments and assigns associated costs to inventory accurately. Option A supports managing logistical journeys, calculating estimated and actual landed costs, and allocating costs across multiple purchase orders within a shipment.
Imported goods incur several cost components. Freight, insurance, customs duties, demurrage, and port charges significantly affect the true cost. Without a structured landed cost module, companies often struggle with inaccurate inventory costing, leading to incorrect profit analysis and valuation.
The landed cost module allows companies to define voyages (transportation journeys), containers, and shipment legs. Purchase orders are assigned to voyages, ensuring visibility throughout transit. As actual costs are received from carriers or customs brokers, they are entered into the system and allocated using preloaded rules. Allocation can be based on weight, volume, item cost, or quantity.
Option B, standard purchase orders, do not track multi-leg journeys or allocate shared costs.
Option C, manual inventory adjustments, is highly error-prone and lacks traceability.
Option D, freight reconciliation, handles freight charges but does not cover full landed cost tracking.
The landed cost module also tracks estimates versus actuals. Estimated costs provide a preliminary value for inventory during transit, while actual costs finalize inventory valuation once invoices arrive.
Landed cost management supports financial reporting, compliance with accounting standards, and accurate margin calculations. It also improves supply chain visibility by showing where goods are in the shipping process and which costs have been incurred.
Thus, configuring the landed cost module is essential for companies with international procurement needs.
Question 180:
A company uses multiple warehouses and wants to optimize stock transfers. They require automatic replenishment between warehouses based on demand. Transfer orders must be generated automatically through master planning when stock levels fall below defined thresholds. What should you configure?
A) Intercompany or intrawarehouse transfer planning through coverage groups and master planning
B) Manual transfer journals
C) Warehouse adjustments only
D) Production orders for stock balancing
Answer:
A
Explanation:
Intercompany or intrawarehouse transfer planning through coverage groups and master planning is the correct configuration because it ensures that inventory replenishment between warehouses occurs automatically based on demand. Option A supports planning logic that evaluates minimum and maximum stock levels, forecast demand, and safety stock requirements to generate planned transfer orders.
Coverage groups define planning rules for each item, such as minimum inventory requirements, replenishment methods, and order modifiers. When combined with master planning, the system evaluates demand and supply across warehouses. If one warehouse has insufficient stock, the system creates a planned transfer order from another warehouse.
Option B, manual transfer journals, requires user input and does not support planning automation.
Option C, warehouse adjustments, correct quantities but do not replenish stock.
Option D, production orders, apply to manufacturing, not warehouse replenishment.
Master planning ensures balanced inventory across multiple facilities, reducing stockouts and avoiding excessive carrying costs. Planned transfer orders can also consider transportation lead times and shipping constraints.
This automation improves warehouse coordination, reduces administrative burden, and ensures efficient inventory flow.
