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Question 1:
Your company uses Dynamics 365 Supply Chain Management to coordinate production operations across three manufacturing sites. A production order for a high-volume item remains stuck in the scheduled status even though the material availability check shows all components are fully reserved. You need to determine which system configuration issue is most likely responsible for the order not progressing to the released state. What should you investigate first?
A) Production order status control policies
B) Capacity settings for the assigned resource group
C) Automatic firming setup in Master Planning parameters
D) Standard reservation hierarchy rules
Answer:
B
Explanation:
Option A, production order status control policies, refers to settings in Dynamics 365 Supply Chain Management that define which actions are allowed at specific production order statuses. These policies control when materials can be consumed, when costing can occur, when reporting as finished is possible, and when orders can be moved from one status to another. Status control policies are essential for maintaining process discipline in manufacturing environments, ensuring that orders cannot be accidentally reported as finished or ended before required steps, such as picking or quality checks, are completed. While these policies influence the production workflow, they do not directly affect planning, firming, or capacity settings. Instead, they regulate behavioral rules once the order is already created, making them useful in execution control rather than planning automation.
Option B, capacity settings for the assigned resource group, determines which machines, work centers, or human resources can perform a given production task. Capacity settings include working hours, efficiency rates, finite or infinite capacity behavior, and resource capability constraints. These settings directly affect scheduling because the system must confirm that the assigned resources have availability before allocating tasks. If capacity is insufficient, the system may push production schedules forward or backward to find available time slots. Although capacity setup is critical in production scheduling, it does not directly trigger or control order firming or reservation processes. Instead, it ensures that once planned orders exist, they are realistically scheduled using available resource capabilities.
Option C, automatic firming setup in master planning parameters, controls whether planned production orders are automatically converted into firmed production orders based on time fences or planning logic. This setting is essential when companies want planning to autonomously create executable production orders without manual review. Automatic firming evaluates established horizons, such as the frozen zone or firming time fence, and converts planned orders into real production orders when the conditions are met. This directly influences production execution readiness and ensures a smoother, automated transition from planning to manufacturing.
Option D, standard reservation hierarchy rules, refers to how the system selects inventory dimensions during reservation, such as site, warehouse, batch, serial, or location. Reservation hierarchies dictate the order in which inventory dimensions must be specified, enabling advanced warehouse features. Although crucial for inventory control, they do not govern planning, firming, scheduling, or production control policies. Instead, they ensure consistent and system-compliant reservation processes.
Question 2:
A warehouse manager reports that workers are spending too much time walking between aisles to pick small quantities for high-volume e-commerce orders. Your organization uses Dynamics 365 Supply Chain Management with advanced warehouse operations enabled. You need to configure a feature that groups picking tasks together to minimize warehouse travel distance and speed up outbound wave processing. Which warehouse capability should you implement?
A) Work template sequencing
B) Cluster picking
C) Wave demand replenishment
D) Fixed locations in location directives
Answer:
B
Explanation:
Work template sequencing, cluster picking, wave demand replenishment, and fixed locations within location directives are all essential warehouse management concepts that optimize the flow of goods and labor efficiency in advanced warehouse systems. Work template sequencing defines the order in which the system generates warehouse work for sales orders, replenishment, production raw material picking, or transfer activities. By sequencing work templates, an organization can control priority, grouping criteria, and the specific execution flow—ensuring that work is created with the correct steps such as picking, staging, or loading. The system evaluates templates in sequence, applying the first one that meets the defined conditions, which helps accommodate different operational scenarios like bulk picking vs. containerized picking. Cluster picking is a method that allows workers to pick items for multiple orders simultaneously using a shared picking cart or cluster of containers. This approach significantly reduces travel time on the warehouse floor, as a worker only needs to visit each location once to pick items for all assigned orders. It is especially efficient when processing many small or similar orders, enabling faster throughput, reduced walking distance, and higher picking accuracy. Wave demand replenishment is a real-time replenishment mechanism that triggers inventory movement when a wave is released and the system detects insufficient stock in picking locations. Instead of relying solely on periodic replenishment triggers, wave demand replenishment fills the gap by ensuring that picking locations are topped up on demand, preventing wave failures, shortages, and last-minute disruptions. This creates a smooth picking process and ensures orders can be completed without delays due to stockouts. Fixed locations in location directives provide designated, stable storage spots for specific items, allowing the system to direct put-away and picking tasks to consistent locations. This increases predictability for workers, supports efficient travel paths, and improves inventory accuracy by reducing scattering of the same item across multiple random locations. Fixed locations also integrate with replenishment strategies, as the system knows exactly which location must be refilled and when. Together, these four elements enhance warehouse efficiency, reduce manual decision-making, and create a highly optimized, automated workflow.
Question 3:
Your organization has implemented advanced warehouse management and wants to improve the accuracy of put-away operations. You need to configure a system-driven way to automatically determine the most appropriate storage location for incoming purchase order receipts using rules based on item dimensions, volume, and zone restrictions. What should you set up?
A) Work templates
B) Location directives
C) Cycle counting thresholds
D) Mobile device menus
Answer:
B
Explanation:
Work templates, location directives, cycle counting thresholds, and mobile device menus form the backbone of efficient warehouse operations in advanced warehouse management systems. Work templates define the structure and sequence of warehouse work tasks—such as picking, put-away, replenishment, packing, and staging—by outlining the steps the system must create when processing orders.
They ensure consistency by dictating how tasks are broken down (for example, pick then put), which work classes are used, and how work is executed across different scenarios. Properly configured work templates align system-generated instructions with real operational processes, preventing errors and optimizing labor flow. Location directives guide the system in determining where items should be picked from or stored, using rules, constraints, and strategies such as fixed locations, FEFO/FIFO logic, or capacity considerations. These directives ensure that inventory movement always follows business policies, improves space utilization, and supports traceability by avoiding random or inefficient location assignments. Cycle counting thresholds help maintain inventory accuracy by triggering cycle counts based on conditions such as minimum on-hand quantities, frequency rules, item classifications, or user-defined thresholds. Instead of relying solely on annual physical counts, threshold-based cycle counting allows the system to automatically prompt verification of high-value, fast-moving, or frequently accessed items.
This reduces discrepancies, improves data reliability, and minimizes operational disruptions since counts can be scheduled during normal workflow. Mobile device menus provide warehouse workers with structured, user-friendly interfaces on handheld scanners or mobile devices. These menus present tasks such as receiving, picking, counting, packing, or replenishment in a logical and simplified format. Configuring mobile device menus allows organizations to customize user flows, enforce operational rules, and ensure workers only see options relevant to their roles or assigned processes. When well designed, they increase productivity by reducing training time, preventing navigation errors, and providing real-time direction based on system-generated work. Together, these four components support a robust and highly controlled warehouse environment by standardizing task creation, guiding physical inventory movement, ensuring continuous accuracy, and enhancing worker efficiency through intuitive mobile interactions.
Question 4:
Your company is setting up Master Planning in Dynamics 365 Supply Chain Management. The planning manager wants the system to generate supply orders only when inventory levels fall below a calculated threshold based on past demand and lead times. Which replenishment strategy should you configure to support this requirement?
A) Kanban replenishment
B) Min/Max coverage
C) Requirement coverage
D) Period coverage
Answer:
B
Explanation:
Kanban replenishment, Min/Max coverage, requirement coverage, and period coverage are all important inventory planning methods used to balance stock availability with cost efficiency in manufacturing and distribution environments. Kanban replenishment follows a pull-based approach in which inventory is replenished only when consumption occurs, typically triggered by a signal such as an empty bin, a Kanban card, or an automated system alert.
This method helps minimize excess inventory, reduce lead times, and support lean manufacturing principles by ensuring materials are supplied exactly when needed. Min/Max coverage offers a more traditional approach by defining minimum and maximum stock levels; when inventory falls below the minimum, the system generates a replenishment order to raise the quantity back up to the maximum. This method is easy to manage and works well for items with stable consumption patterns, ensuring adequate stock without unnecessary overstocking.
Requirement coverage focuses strictly on demand-driven planning by generating supply orders only when actual requirements exist, such as sales orders, production orders, or dependent demand from bill-of-material components. This approach minimizes inventory holding costs and is ideal for make-to-order or slow-moving items where maintaining stock is not efficient. Period coverage operates differently by grouping all demand within a defined time interval, such as a weekly or monthly period, and creating one consolidated supply order for that span.
Instead of reacting to each individual demand event, the system accumulates requirements to reduce the number of orders and streamline procurement or production processes. This can help companies reduce administrative workload, improve batching efficiency, and create smoother planning cycles. Together, these four methods offer organizations a broad set of tools for managing inventory replenishment, allowing them to match planning strategies with item characteristics, consumption behavior, and operational goals. By choosing the appropriate coverage method, businesses can optimize stock levels, support reliable production flows, and maintain high service levels while controlling overall inventory costs.
Question 5:
A distribution center needs to improve inventory accuracy by ensuring that fast-moving items are counted more frequently than slow-moving items. You need to configure functionality in Dynamics 365 Supply Chain Management that adjusts counting frequency based on item activity levels. Which setup should you use?
A) ABC classification with cycle counting
B) Wave templates
C) Counting journals with manual triggers
D) Fixed receiving strategies
Answer:
A
Explanation:
ABC classification with cycle counting, wave templates, counting journals with manual triggers, and fixed receiving strategies are key components of effective warehouse and inventory management. ABC classification with cycle counting is a method that categorizes items based on their importance, usage frequency, or value, usually grouping them into A, B, and C classes. A-class items are typically high-value or high-turnover products that require frequent counting, while B and C items are counted less often. This classification allows organizations to focus their counting resources where accuracy matters most, ensuring reliable inventory data without the burden of full physical inventories.
Wave templates, on the other hand, define the structure and rules for processing waves—batches of work released together for picking, replenishment, or shipping. These templates determine how orders are grouped, prioritized, and executed based on criteria such as shipping method, order type, or warehouse zone. A well-configured wave template ensures that warehouse operations flow efficiently, grouping similar tasks and optimizing labor usage. Counting journals with manual triggers offer a more flexible approach to inventory counting because they allow users to manually initiate cycle counts when unusual events occur, such as suspected discrepancies, damaged goods, or unexpected stock movements. Instead of relying solely on automated thresholds or scheduled counts, manual triggers give warehouse personnel the ability to respond to real-time issues and maintain accuracy on the spot. Fixed receiving strategies provide standardized rules for how incoming goods should be handled when they enter the warehouse.
These strategies may dictate that certain items always go to specific staging areas, quality-inspection zones, or put-away locations. By establishing consistent receiving procedures, warehouses reduce confusion, minimize handling errors, and ensure that goods enter the system in a predictable and controlled manner. Together, these four concepts support a highly organized warehouse environment by improving inventory accuracy, optimizing operational flow, reducing labor waste, and ensuring that receiving and counting processes align with overall business rules and priorities.
Question 6:
A production supervisor notices that finished goods are frequently delayed because the system is not releasing production orders when expected. The company uses Master Planning with multiple item coverage groups. The supervisor wants planned production orders to automatically firm into production orders when requirements are due within a defined time window. You need to configure the appropriate setting. What should you enable?
A) Reduced key setup
B) Auto-firming in coverage groups
C) Pegged supply mode
D) Safety stock fulfillment
Answer:
B
Explanation:
Reduced key setup, auto-firming in coverage groups, pegged supply mode, and safety stock fulfillment are all planning and replenishment configuration elements that influence how a system manages supply and demand alignment. Reduced key setup is used to simplify forecasting and planning by grouping historical demand into larger, aggregated periods or categories rather than tracking every small detail. By reducing the number of keys or segments used for forecasting, planners can focus on broader demand patterns, which often leads to more stable and manageable forecasts, especially for items with long life cycles or steady consumption. Auto-firming in coverage groups is a feature that automatically converts planned supply orders into firmed orders once they fall within a defined time fence.
This ensures that procurement and production teams receive actionable, confirmed orders without requiring constant manual intervention. It helps stabilize the near-term planning horizon and supports timely execution while reducing planning workload. Pegged supply mode determines how supply is linked, or “pegged,” to specific demands within the planning system. It makes it possible to track which supply order fulfills which demand, offering visibility into dependencies across sales orders, production orders, or transfer requirements. This improves traceability and decision making, especially when shortages occur or when planners need to understand the downstream impact of delaying or canceling supply.
Safety stock fulfillment, meanwhile, governs how the planning engine treats safety stock levels when generating supply orders. It ensures that replenishment not only covers current demand but also restores inventory back to predefined safety stock quantities. This prevents stockouts, supports reliable customer service levels, and helps buffer variability in demand or supply lead times. Together, these four concepts influence how planning systems balance responsiveness, accuracy, and operational stability. They ensure that supply orders are generated efficiently, linked correctly to demand, simplified where appropriate, and aligned with both service-level expectations and real-world execution needs.
Question 7:
Your organization uses Dynamics 365 Supply Chain Management with advanced warehouse functionality. The warehouse manager wants workers to be directed to pick items in a sequence that minimizes total walking path length, progressing through the warehouse in a logical physical order. You need to configure the system to optimize the pick path. What should you set up?
A) Location directives with multi-skip rules
B) Work template order-by fields
C) Mobile device directed work priorities
D) Wave step code sorting
Answer:
B
Explanation:
Location directives with multi-skip rules, work template order-by fields, mobile device directed work priorities, and wave step code sorting all contribute to creating a flexible, efficient, and highly automated warehouse management workflow. Location directives with multi-skip rules allow the system to evaluate multiple possible put-away or picking locations and skip unsuitable ones based on conditions such as capacity limits, inventory status, or zone restrictions.
This ensures that warehouse processes remain smooth even when preferred locations are unavailable, because the system automatically moves to alternative locations without manual intervention. Work template order-by fields define how generated work should be sorted or sequenced before it is executed by workers. By specifying sorting criteria such as location, item number, or work priority, warehouses can control the order in which tasks appear, which helps minimize travel distances and ensures that picking or put-away follows an optimized route. Mobile device directed work priorities further enhance task execution by guiding workers toward the most urgent or important work first, based on rules defined in the system. Priorities can be driven by factors such as shipment deadlines, wave processing stages, replenishment urgency, or customer importance.
This ensures that workers are always directed toward the tasks that best support operational goals, reducing delays and improving overall throughput. Wave step code sorting plays a key role during wave processing by defining the sequence in which wave steps are executed, such as allocation, replenishment, containerization, or work creation. Proper sorting of wave step codes ensures dependencies are respected and tasks occur in the correct order, preventing wave failures and ensuring that picking work is created only after stock has been allocated or replenished. Together, these four elements create a seamless flow of automated decisions and optimized worker guidance, reducing manual decision-making, improving accuracy, and supporting consistently high warehouse performance across receiving, picking, replenishment, and shipping activities.
Question 8:
A procurement manager wants to ensure vendors deliver materials on time according to the company’s delivery schedule. The manager needs to track incoming purchase orders compared to confirmed delivery dates and measure vendor performance within Dynamics 365 Supply Chain Management. Which configuration should you implement?
A) Vendor certificates
B) Vendor calendar exceptions
C) Purchase order delivery performance settings
D) Lead time validation groups
Answer:
C
Explanation:
Purchase order delivery performance settings allow the system to record and evaluate vendor delivery accuracy by comparing actual receipt dates against confirmed dates. This enables performance analysis, reporting, and vendor scorecards. That makes option C the correct choice as it directly supports evaluating vendor timeliness.
Option A is used for compliance documentation, not delivery performance. Option B helps identify vendor working days but does not measure actual delivery behavior. Option D validates lead time accuracy but does not measure vendor performance. Only delivery performance settings provide the systematic evaluation needed for tracking on-time delivery.
Question 9:
Your manufacturing plant uses multiple subcontractors for outsourced operations. You need to configure Dynamics 365 Supply Chain Management so that subcontracted work is reflected on the production order and materials can be shipped to subcontractors based on routing steps. Which setup should you use?
A) Operation-based vendor assignment
B) Purchase agreement linking
C) Production pool scheduling
D) Material consumption policies
Answer:
A
Explanation:
Operation-based vendor assignment, purchase agreement linking, production pool scheduling, and material consumption policies are interconnected elements that help organizations streamline procurement, production planning, and material usage within an integrated supply chain system. Operation-based vendor assignment allows specific operations within a production route to be subcontracted to designated vendors, ensuring that portions of the manufacturing process requiring external expertise, specialized equipment, or capacity relief are automatically associated with the correct supplier.
This setup improves accuracy in cost estimation, lead-time calculation, and purchase order generation for subcontracted services. Purchase agreement linking further enhances procurement efficiency by connecting purchase orders or planned orders directly to active purchase agreements, enabling the system to apply negotiated pricing, delivery terms, and quantity commitments without manual referencing. This ensures compliance with procurement policies and helps companies benefit fully from strategic supplier contracts. Production pool scheduling allows planners to group production orders into logical pools based on shared characteristics such as product type, resource group, production line, or priority. These pools make it easier to visualize workload distribution, organize scheduling activities, and streamline sequencing across the shop floor.
By managing production in pools, planners gain better control over batching, capacity balancing, and order tracking. Material consumption policies determine how and when materials are consumed during production, defining whether consumption should be backflushed automatically, recorded manually, or triggered by specific events such as operation completion or quantity reporting.
These policies help control inventory accuracy, production costing, and material traceability by ensuring that consumption is captured in a consistent and reliable way. When configured effectively, they support lean material flow, minimize reporting effort, and reduce errors associated with manual issuing. Together, these four concepts strengthen the integration between purchasing, production execution, and inventory control, helping organizations optimize vendor collaboration, enforce procurement agreements, improve scheduling visibility, and maintain accurate, efficient material usage throughout the manufacturing process.
Question 10:
Your company manages raw materials stored in multiple license plate–controlled locations. The warehouse team wants the system to ensure that materials are picked according to strict first-expiry-first-out rules during production picking. You need to configure the appropriate warehouse logic. What should you implement?
A) Replenishment templates
B) Batch disposition codes
C) Location directives with batch reservation strategies
D) Mobile device menu items for batch picking
Answer:
C
Explanation:
Replenishment templates, batch disposition codes, location directives with batch reservation strategies, and mobile device menu items for batch picking are all essential configuration elements that help organizations manage inventory availability, quality control, and efficient picking processes in a warehouse environment. Replenishment templates provide the framework for determining how and when inventory should be moved to picking or production locations, guiding the system to create replenishment work based on triggers such as minimum stock levels, wave demand, or fixed location requirements. These templates help maintain consistent stock availability in forward pick areas, prevent stockouts, and ensure smooth order fulfillment by automating replenishment actions. Batch disposition codes add a layer of quality and compliance control by defining the usability status of each batch, such as available, quarantined, restricted, or blocked.
Assigning disposition codes ensures that batches with quality issues or pending inspection are not accidentally allocated or picked for customer orders, thereby preventing errors and maintaining regulatory compliance. Location directives with batch reservation strategies further enhance batch-controlled inventory management by defining the logic the system uses to select the appropriate batch during picking or put-away. Strategies such as FEFO, FIFO, or batch selection based on specific attributes ensure that inventory is consumed or allocated in a manner consistent with shelf-life requirements, customer specifications, or internal quality rules.
These directives also guide the system on where batches should be stored, helping optimize space utilization and maintain traceability. Mobile device menu items for batch picking provide warehouse workers with user-friendly, handheld workflows specifically tailored for picking batch-controlled items. These menu items allow workers to scan and confirm batch numbers, follow directed picking instructions, and ensure accurate batch selection without relying on manual checks. Properly configured menu items support efficient execution, reduce errors, and ensure alignment with reservation and quality rules. Together, these four elements work in harmony to maintain accurate batch control, ensure reliable stock availability, support quality assurance, and provide warehouse staff with clear, guided processes that improve overall operational efficiency.
Question 11:
A supply chain analyst wants to improve visibility into how Master Planning calculates demand for specific finished goods. The analyst needs a detailed breakdown of how planned orders are generated, including references to sales orders, safety stock, BOM requirements, and transfer demands. Which tool in Dynamics 365 Supply Chain Management should you use to provide this detailed trace?
A) Action messages
B) Master planning explosion
C) Supply schedule
D) Requirement codes
Answer:
B
Explanation:
Action messages, master planning explosion, supply schedule, and requirement codes are important components of a comprehensive planning and replenishment framework used to align supply and demand in manufacturing and distribution environments. Action messages are system-generated recommendations produced by the planning engine to help planners adjust supply orders in response to evolving demand conditions.
These messages typically suggest actions such as advancing, delaying, increasing, decreasing, or even canceling purchase, transfer, or production orders. By reviewing and acting on these signals, planners can keep supply synchronized with demand, prevent excess inventory, avoid shortages, and optimize resource utilization. Master planning explosion is the detailed breakdown process in which the planning system analyzes a finished good’s bill of materials and routing to determine all lower-level component and operation requirements.
During this explosion, the system calculates dependent demand for raw materials, subassemblies, and capacities, ensuring that every component needed to build the finished product is planned at the correct time and quantity. This step is crucial for multi-level manufacturing environments because it enables synchronized planning across the full supply chain structure. The supply schedule provides a consolidated view of all planned and firmed supply orders, including purchase orders, production orders, and transfer orders, along with their expected dates and quantities.
It allows planners to visualize how future inbound supply aligns with upcoming demand, facilitating better communication between purchasing, production, and logistics teams. Requirement codes add another layer of planning control by categorizing and distinguishing different types of demand, such as sales forecast, independent demand, dependent demand, safety stock requirements, or project-specific needs. These codes help planners filter, analyze, and prioritize requirements, ensuring that supply is allocated appropriately and that special or high-priority demand is not overlooked. Together, action messages, explosion logic, supply schedule insights, and requirement codes provide a structured approach to managing supply chains, enabling organizations to maintain accuracy, responsiveness, and stability in their planning processes.
Question 12:
Your organization operates a large warehouse with temperature-controlled zones. The operations manager needs to ensure that items requiring specific environmental conditions are always stored in appropriate warehouse zones during put-away. You must configure rule-based storage behavior. What should you set up?
A) Zone groups mapped in work templates
B) Location directives with constraint-based rules
C) Replenishment policies using fixed demand
D) Multiple cycle counting plans
Answer:
B
Explanation:
Location directives with constraint-based rules allow items to be stored in specific warehouse zones based on attributes such as temperature, hazard class, or storage needs. You can configure query-based constraints so the system evaluates each incoming item and selects only locations meeting required conditions. That makes option B correct because it enables environmental compliance during put-away.
Option A does not enforce storage constraints; it only organizes how work templates are grouped. Option C deals with replenishing picking areas but does not restrict which zones must be used. Option D manages inventory verification, not environmental rules. Therefore, constraint-based location directives are the only setup capable of ensuring proper storage for temperature-sensitive items.
Question 13:
A production facility wants to analyze material usage variances in production orders. Operators report that actual material consumption regularly differs from the BOM standards. The costing department needs a feature in Dynamics 365 Supply Chain Management that records actual material usage and compares it to expected quantities for cost variance analysis. Which functionality should you configure?
A) Backflushing
B) Route consumption
C) Production posting journals
D) Consumption feedback
Answer:
D
Explanation:
Consumption feedback allows production workers to report actual quantities of materials consumed during production. These reported values are compared with the BOM’s expected quantities, enabling detailed analysis of consumption variances. Option D is correct because it provides direct visibility into discrepancies between standard and actual usage, which is essential for accurate costing analysis.
Option A automatically consumes materials based on BOM quantities without tracking variance unless adjusted manually. Option B records labor and machine time, not material consumption. Option C records production transactions but does not inherently compare expected and actual consumption unless tied to feedback processes. Therefore, consumption feedback best supports variance evaluation.
Question 14:
A retail distribution center wants to streamline the packing process by allowing workers to pack items into containers while also validating dimensions, weight, and shipping labels. The company is using warehouse management and needs an integrated packing process driven by system rules. Which feature should you configure?
A) Manual packing station
B) Containerization
C) Work confirmation policies
D) Load planning templates
Answer:
B
Explanation:
Containerization automates the process of packing items into containers based on rules such as item dimensions, weights, container types, and shipping constraints. It can automatically propose optimal containers and generate packing structures. Option B is correct because it integrates packing logic directly into outbound processing and ensures items are assigned to containers compliant with shipping requirements.
Option A is a manual process requiring workers to make packing decisions themselves. Option C controls how warehouse work is confirmed, not how containers are selected or filled. Option D helps assign orders or shipments to loads for transportation but does not manage item-level container logic. Only containerization meets the requirement for rule-based automated packing.
Question 15:
Your company wants to use cross-docking to reduce storage time and accelerate order fulfillment. Items arriving on purchase orders should be immediately allocated to open sales orders whenever possible. You need to configure the appropriate type of cross-docking in Dynamics 365 Supply Chain Management. Which method should you choose?
A) Production cross-docking
B) Transfer cross-docking
C) Purchase order cross-docking
D) Opportunistic cross-docking
Answer:
D
Explanation:
Opportunistic cross-docking evaluates incoming inventory during receiving and automatically allocates it to open sales orders, transfer orders, or production orders as needed. It does not require predefined links, making it ideal when matching supply to demand dynamically. This makes option D correct because the company wants immediate allocation when sales orders are open, without pre-setup linking.
Option A is used when items produced in-house must go directly to outbound or consumption processes, not for purchased goods. Option B applies to inventory moving between warehouses. Option C requires planned and predefined links between the purchase order and the sales order, reducing flexibility. Opportunistic cross-docking best fits the requirement for real-time matching of purchase receipts to existing demand.
Question 16:
A company uses Dynamics 365 Supply Chain Management to manage production and warehouse operations. During production order picking, workers notice that the system sometimes directs them to pick items from locations with low remaining stock even though other locations have higher quantities. The operations manager wants the system to evaluate picking efficiency by selecting the location with the least travel distance instead of simply following FEFO or FIFO rules. You must configure the system to prioritize travel-optimized picking. What should you set up?
A) Work template sort criteria
B) Replenishment wave strategies
C) Location directive query filtering
D) Cluster picking profiles
Answer:
A
Explanation:
Work template sort criteria allow warehouse managers to adjust the order in which work lines are presented to pickers. By adding fields such as aisle, bay, or physical location sorting, the system can determine which pick location results in the lowest overall travel distance. Option A is correct because sort criteria directly influence the logic used to optimize pick paths. Instead of enforcing picking solely based on batch rotation rules like FIFO or FEFO, sort criteria allow the warehouse to prioritize the most efficient physical location for picking, reducing worker travel time.
Option B, replenishment wave strategies, deals with ensuring that forward picking locations are adequately stocked before picking begins, but it does not influence which location is chosen during picking. Option C, location directive query filtering, narrows which locations are eligible for picking based on rules, but it does not rank or prioritize travel efficiency. Option D, cluster picking, reduces travel by grouping picks for multiple orders but does not control which location should be selected for any given item. When optimizing pick paths inside the warehouse, sort criteria inside work templates offer the most direct and precise control, ensuring that pickers follow the shortest distance.
Question 17:
A food distribution company manages perishable goods with strict expiration controls. When receiving products, warehouse workers must verify batch numbers and confirm expiry dates before completing put-away. The operations team wants the system to prevent completion of receiving work if an expiry date is missing or invalid. You need to enforce this rule. Which feature should you configure?
A) Batch attributes with validation rules
B) Quality order triggers
C) Batch disposition codes
D) Load receiving policies
Answer:
A
Explanation:
Batch attributes with validation rules allow the system to enforce specific conditions during receiving, such as requiring an expiry date before completing put-away. Option A is correct because batch attributes can be configured to make expiry date entry mandatory and validate whether the date falls within an acceptable time range. This ensures compliance with food safety requirements and prevents incorrect inventory postings.
Option B, quality order triggers, initiates inspection and testing but does not strictly validate expiry date entry during receiving. Option C, batch disposition codes, control whether a batch can be used but do not force workers to enter or validate expiry dates during put-away. Option D, load receiving policies, deal with inbound logistical processes but do not enforce expiry date validation. Therefore, batch attributes with validation rules give the most reliable enforcement mechanism for preventing the receipt of invalid or incomplete batch information.
Question 18:
A manufacturing organization wants to reduce unexpected production stoppages caused by missing raw materials. They want Dynamics 365 Supply Chain Management to automatically check availability before releasing production orders and only allow release when all required materials are available either in the main warehouse or in the staging area. What should you enable?
A) Material availability checks
B) Automatic reservation hierarchies
C) Production journal approval workflows
D) Line-level pegging validation
Answer:
A
Explanation:
Material availability checks allow the system to validate whether all required BOM components are available before a production order is released. Option A is correct because enabling this feature prevents the release of production orders when materials are missing, reducing interruptions during production execution. The system checks both on-hand stock and reserved quantities to ensure that everything required is physically accessible.
Option B ensures reservations follow correct hierarchical structure but does not prevent order release. Option C concerns approval processes for posting journals, not material readiness. Option D relates to the alignment between supply and demand but does not ensure material availability before releasing production. Only the material availability check enforces a hard stop on production release when materials are insufficient, meeting the organization’s requirement.
Question 19:
Your company uses Dynamics 365 Supply Chain Management to process large volumes of transfer orders between regional warehouses. The logistics team wants shipping waves to automatically group transfer orders that share the same destination warehouse and transportation mode. You need to configure wave processing to meet this requirement. What should you implement?
A) Wave templates with grouping criteria
B) Automatic load building
C) Load planning workbench
D) Shipment consolidation rules
Answer:
A
Explanation:
Wave templates with grouping criteria enable the system to automatically group similar orders during shipping waves. You can configure the template to group by destination warehouse, transportation mode, shipping carrier, or other relevant fields. Option A is correct because it directly controls how orders are batched together during wave creation, ensuring efficient processing of outbound transfer orders.
Option B, automatic load building, groups shipments into loads but does not manage the earlier wave grouping step. Option C is a planning tool for managing loads but not for triggering automated grouping. Option D supports the consolidation of shipments but is not responsible for grouping orders in waves. Wave template grouping criteria provide the precise control needed for automatically grouping transfer orders during wave processing.
Question 20:
A company is implementing advanced warehouse management and wants to allow workers to finalize outbound shipments at the dock. The system must generate shipment confirmations, update inventory, and assign tracking numbers directly from the mobile device interface. Which configuration supports this requirement?
A) Mobile device menu item for confirm and close
B) Work pool assignment
C) Shipment reservation hierarchies
D) Carrier load sequencing
Answer:
A
Explanation:
Mobile device menu items configured for confirm and close allow workers to finalize outbound shipments directly at the dock using handheld devices. Option A is correct because this menu type enables shipment confirmation, updates inventory to reflect shipped goods, and supports integration with carrier tracking functionality. It enables a streamlined workflow that can be executed in real time, improving outbound accuracy and efficiency.
Option B organizes work items but does not finalize shipments. Option C controls reservation rules but not shipment confirmation processes. Option D dictates how loads are sequenced but does not allow final confirmation from the mobile device. Therefore, configuring a mobile device menu item that supports confirm and close enables dock workers to complete outbound processes quickly and accurately.
