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Question 21:
A manufacturing company uses Dynamics 365 Supply Chain Management to manage operations across multiple production facilities. Planners report that Master Planning is generating planned production orders using outdated BOM versions, resulting in incorrect material requirements and production errors. The organization frequently updates BOM structures due to engineering changes, and the planners need the system to always select the latest active BOM version based on effective dates. What should you configure to ensure the correct BOM version is always used?
A) BOM version activation policies
B) Coverage groups with BOM date control
C) Planning optimization item filters
D) Costing version default dates
Answer:
B
Explanation:
Ensuring that Master Planning uses the correct and most current BOM version is essential for maintaining material accuracy and avoiding costly production issues. In Dynamics 365 Supply Chain Management, the correct configuration to achieve this outcome is enabling BOM date control within the item’s coverage group. This setting forces the planning engine to evaluate BOM versions strictly based on their effective dates, ensuring the appropriate version aligns with the demand date used for planning.
Option A, BOM version activation policies, manages the workflow of enabling or approving versions but does not influence Master Planning’s selection logic. Even if a version is approved, planning may still select older versions unless date control is enforced.
Option C, planning optimization item filters, restricts which items get included in a planning run. This has no impact on version selection logic and cannot solve the issue of outdated BOM use.
Option D, costing version default dates, relates to cost calculations rather than material requirement planning. Costing versions evaluate cost lines, not BOM revision histories.
By implementing BOM date control within coverage groups, organizations ensure alignment between engineering and planning activities. This reduces material misalignment, minimizes rework, and enhances overall production reliability. It also creates a clear audit trail showing exactly which version was used during planning, enabling planners and engineers to trace and validate production histories. For businesses with frequent product changes, this configuration becomes a foundational requirement for ensuring continuity between engineering, purchasing, and manufacturing functions.
Question 22:
A distribution company using Dynamics 365 Supply Chain Management often receives rush customer orders requiring immediate allocation of available stock. The warehouse team wants the system to automatically prioritize these urgent orders over regular orders during picking operations. You need to configure the system to ensure that high-priority orders receive first access to available inventory during wave creation. What should you configure?
A) Work priority values
B) Shipment allocation methods
C) Wave templates with order hold codes
D) Release to warehouse rules with sort criteria
Answer:
A
Explanation:
Work priority values allow organizations to influence how Dynamics 365 Supply Chain Management allocates warehouse work during wave processing. Using work priority values enables urgent or VIP orders to be given precedence, ensuring they receive available stock before standard orders. This capability is essential when demand exceeds supply or when operational efficiency requires prioritization.
Warehouse workloads often include a mix of normal and urgent orders. Urgent orders may be related to service-level agreements, expedited deliveries, or customer commitments. Without a prioritization mechanism, waves will allocate inventory on a first-come, first-served basis. This may result in lower-priority orders consuming available inventory, leaving urgent orders delayed. Work priority values solve this by ranking warehouse work.
Option A is correct because work priority values define numerical priority levels attached to work orders generated through waves. When waves run, the system processes work in priority order, ensuring higher-priority orders are allocated first. These values can be defined at the order level, load level, or wave template level to ensure flexibility in directing warehouse execution.
Option B, shipment allocation methods, helps with shipment grouping but does not determine the priority of work creation or inventory allocation.
Option C, wave templates with order hold codes, is used to stop orders from being released to the warehouse entirely until they are manually released. This does not provide prioritization.
Option D, release to warehouse rules with sort criteria, can help order work sequence once picking begins, but it does not prioritize urgent orders in inventory allocation. Sorting helps determine pick sequence, not order priority.
This approach also ensures predictability. Managers know exactly which orders will be fulfilled first, enabling accurate communication with customers and logistics teams. Work priority values therefore provide the most effective and flexible method for prioritizing urgent customer orders inside warehouse operations.
Question 23:
A company uses Dynamics 365 Supply Chain Management to manage production operations. Production orders frequently fail at the release stage because materials are unavailable in the correct picking locations, even though sufficient stock exists elsewhere in the warehouse. You need to configure the system to automatically replenish picking locations before production waves run. What should you set up?
A) Wave replenishment templates
B) Work templates assigned to production orders
C) Material consumption journals
D) Location directive overrides
Answer:
A
Explanation:
Wave replenishment templates enable the system to evaluate whether picking locations have sufficient stock before processing production waves. If stock is insufficient, the system automatically generates replenishment work to move materials from bulk locations to picking locations. This ensures that when production waves execute, all required materials are already staged appropriately. Option A is correct because wave replenishment is designed specifically for this automation.
Option B defines the structure of warehouse work for production picking but does not ensure that locations are stocked.
Option C, material consumption journals, record consumption but do not affect replenishment.
Option D overrides location selection rules but does not generate replenishment work.
Wave replenishment templates ensure that production execution flows smoothly by preventing delays caused by stock shortages in picking zones. This minimizes production downtime and ensures execution continuity.
Question 24:
A retail company manages product assortments across multiple stores. They use Dynamics 365 Supply Chain Management to generate transfer orders based on replenishment needs. However, stores often receive excess quantities because the system is not considering store-specific sales velocity. You must configure replenishment to use historical sales data to calculate forecasted needs. What should you configure?
A) Min/Max coverage
B) Demand forecasting
C) Safety stock journals
D) Transfer order templates
Answer:
B
Explanation:
Demand forecasting uses historical sales data to predict future needs. Option B is correct because by leveraging forecasting models, the system can estimate demand at each store and generate replenishment orders accordingly. This reduces overstocking and improves supply-chain efficiency.
Option A provides static levels, not dynamic demand-based calculations.
Option C calculates safety stock, but does not project demand for replenishment.
Option D defines templates for transfer orders but cannot predict demand.
Demand forecasting integrates with Master Planning to produce accurate, data-driven replenishment quantities, ensuring stores receive appropriate inventory levels.
Question 25:
A global manufacturing company needs to trace raw materials from vendor receipt through production and final shipment to customers. They use Dynamics 365 Supply Chain Management and require a tracking system that supports regulatory compliance and lot-level visibility. Which feature should you use?
A) Product receipt journals
B) Batch and serial tracking
C) Quality management workflows
D) Nonconformance reports
Answer:
B
Explanation:
Batch and serial tracking provides full traceability from receipt to shipment. Option B is correct because it enables lot-level tracking, allowing organizations to trace materials across procurement, production, and distribution. This is essential for regulatory compliance, especially in pharmaceuticals, food, and electronics.
Option A records receipts but does not support complete traceability.
Option C supports inspections, not end-to-end tracking.
Option D documents issues but does not track materials.
Batch and serial tracking enables complete backward and forward traceability, ensuring compliance and audit readiness.
Question 26:
A large distribution company that operates multiple fulfillment centers uses Dynamics 365 Supply Chain Management to manage inventory movements. During outbound transfer order processing, warehouse workers notice that the picking work often sends them deep into bulk storage instead of forward-pick locations, resulting in long travel times and inefficiency. The warehouse manager wants the system to always prioritize picking from forward-pick locations first, then reserve or bulk locations only when forward pick is empty. You must configure the system to always evaluate forward-pick zones before bulk zones during transfer order picking. What should you configure?
A) Location directive priority sequencing
B) Replenishment templates
C) Work template sorting
D) Load planning strategies
Answer:
A
Explanation:
Location directive priority sequencing is the correct choice because it determines the exact order in which Dynamics 365 evaluates warehouse locations when reserving and creating work for outbound activities such as transfer order picking. In a warehouse environment that uses both forward-pick and bulk-storage locations, properly prioritizing these areas forms the foundation of an efficient picking strategy. Forward-pick locations exist specifically to speed up picking operations by placing frequently accessed inventory closer to workers, often at ground level and near packing stations. Bulk locations, while important for holding reserve stock, generally require more labor to access and are not intended for primary picking.
Option A is correct because location directive priority sequencing directly controls the order in which the system selects storage zones. This ensures that picking operations always start with forward pick unless that zone cannot fulfill the quantity, in which case the system moves down to lower priority zones, such as bulk or reserve storage. Without appropriate sequencing, the system may default to evaluating locations alphabetically or based on unintended logic, causing inefficiency and unnecessary travel.
Option B, replenishment templates, helps ensure that forward-pick locations remain stocked but does not influence which location is chosen during picking. While replenishment is important in environments that utilize forward pick, it addresses availability rather than reservation priority. Even if forward pick is fully replenished, the system may still choose bulk locations unless priority sequencing is applied.
Option C, work template sorting, determines the order in which work lines are shown to workers but does not impact how locations are chosen when creating the work. Sorting controls the sequence of tasks once they already exist, not the logic that selects inventory.
Option D, load planning strategies, affects how shipments are grouped and organized for transportation, not how pick locations are prioritized.
Question 27:
A manufacturing company that produces complex assemblies uses Dynamics 365 Supply Chain Management for production planning. Production supervisors report frequent delays because materials are not staged at the production line when production orders are ready to start. Workers must manually search for components, causing downtime. The company needs a systematic method that automatically moves materials from bulk storage to the production staging area according to the production order schedule. You must ensure materials are pre-staged without manual intervention. What should you configure?
A) Production wave templates
B) Kanban rules
C) Material consumption journals
D) Manual staging work
Answer:
A
Explanation:
Production wave templates are the correct configuration for automatically staging materials before production begins. In Dynamics 365 Supply Chain Management, production waves extend warehouse management functionality into manufacturing environments by allowing the system to treat production orders similarly to outbound processes such as sales orders or transfer orders. When production wave processing is enabled, the system automatically generates picking work to move materials from warehouse storage locations to the production staging location.
Option A is correct because production wave templates allow material staging work to be system-generated instead of manually created. They also integrate with location directives to determine where to pick materials from and where to stage them, ensuring all raw materials arrive at the correct production line location.
Option B, Kanban rules, are useful in Lean manufacturing environments but do not apply to traditional production orders. Kanban is effective for pull-based replenishment, not scheduled staging.
Option C, material consumption journals, merely record consumption and do not create physical movement work.
Option D, manual staging work, is inefficient and relies on human intervention, which the scenario explicitly wants to eliminate.
Question 28:
A company that manufactures electronics uses batch-controlled components. They must ensure that production always consumes the oldest available batch first to maintain compliance and reduce waste. Supervisors report inconsistencies in which batches are consumed during production picking. You must configure the system so that FEFO (first-expiry-first-out) rules always apply when raw materials are picked for production orders. What should you implement?
A) Batch reservation strategies in location directives
B) Work template sorting
C) Batch disposition codes
D) Production order BOM overrides
Answer:
A
Explanation:
Batch reservation strategies within location directives ensure that batches are selected according to FEFO rules every time raw materials are picked for production. In batch-controlled environments, especially those dealing with electronics, pharmaceuticals, food, or chemicals, batch rotation is essential for compliance and quality assurance. FEFO ensures that the batch with the earliest expiration date is always consumed first, preventing obsolete or expired material from accumulating.
Option A is correct because batch reservation strategies integrate directly with warehouse location directives, which determine how the system selects inventory during picking. When FEFO is enabled, the system evaluates batch attributes, compares expiration dates, and prioritizes batches accordingly. This ensures that the right batch is always picked during raw material staging.
Option B controls task sequencing but not inventory selection.
Option C tracks quality restrictions but does not enforce FEFO.
Option D allows manual overrides, not automated batch logic.
When properly configured, FEFO batch strategies prevent regulatory violations, reduce waste, and ensure consistent production quality.
Question 29:
A company that sells high-volume packaged goods wants to optimize outbound picking by reducing worker travel distance. They want picking to be grouped by physical warehouse zones to minimize aisle changes. You need to configure a picking method that groups multiple orders and allows picking for several totes at once. What should you configure?
A) Cluster picking
B) Wave demand replenishment
C) Zone picking
D) Work transacting priorities
Answer:
A
Explanation:
(550+ words)
Cluster picking allows workers to pick items for multiple orders simultaneously while minimizing travel distance. It uses clusters of totes or containers so that a worker follows a single optimized pick path. Option A is correct because it is specifically designed for batch picking in high-volume environments.
Option B replenishes stock but does not optimize picking.
Option C is similar but focuses on area-based assignments rather than combined picking.
Option D affects prioritization but not grouping.
Cluster picking maximizes efficiency by reducing wasted movement and consolidating tasks, making it ideal for fast-moving consumer goods.
Question 30:
A global company requires full traceability from raw materials through finished goods shipments. They must be able to identify which customers received products manufactured from specific raw material batches. They want end-to-end traceability inside Dynamics 365 Supply Chain Management. What should you configure?
A) Batch and serial tracking
B) Nonconformance management
C) Quality control test groups
D) Production posting journals
Answer:
A
Explanation:
(550+ words)
Batch and serial tracking is essential for full backward and forward traceability. Option A is correct because it allows users to trace every raw material batch through production, finished goods, shipment, and customer delivery. In regulated industries, this is required for compliance, recall management, and auditing. Serial numbers provide item-level traceability, while batches provide lot-level tracking.
Option B only records issues.
Option C tests quality but does not trace product flow.
Option D records production postings but does not track batch lineage.
Batch and serial tracking give organizations complete visibility, enabling fast recalls, compliance reporting, and supply-chain transparency.
Question 31:
A global distribution company uses Dynamics 365 Supply Chain Management to handle international shipments. They face recurring issues where export shipments are delayed because paperwork, labels, and customs declarations are not completed before goods arrive at the dock. The logistics manager wants to ensure that shipments cannot be confirmed until all required export documents are generated and validated. You must configure the system so that shipment confirmation is blocked unless all mandatory documentation steps are complete. What should you configure?
A) Load confirmation work policies
B) Wave step codes with document prerequisites
C) Shipment reservation hierarchies
D) Mobile device confirm-and-close options
Answer:
B
Explanation:
Configuring wave step codes with document prerequisites is the correct solution because it enables the system to enforce a strict sequence during outbound processing. In Dynamics 365 Supply Chain Management, wave step codes control the progression of tasks within a wave. These tasks may include document generation, label printing, containerization, and shipment preparation.
Option A, load confirmation work policies, control how loads are confirmed and how warehouse work is handled but do not enforce documentation prerequisites. Load work policies govern picking, packing, or loading work but are not designed to enforce documentation sequencing.
Option C, shipment reservation hierarchies, determine how inventory is selected and reserved but do not deal with export documents or shipment readiness. These hierarchies control how batches, serials, locations, and license plates are prioritized but do not address paperwork validation.
Option D, mobile device confirm-and-close options, allow workers to finalize shipments from a handheld device, but they do not support conditional requirements. They cannot enforce document prerequisites before confirmation and therefore do not meet the requirement.
Wave step codes allow for flexible configuration of outbound processing workflows. For example, you may configure the sequence as follows:
Generate packing slip
Generate bill of lading
Print export documentation
Validate customs declaration
Execute picking work
Confirm shipment
If any of these steps are incomplete, the wave cannot proceed. This ensures that export shipments are always backed by mandatory documentation before reaching the dock, improving compliance and reducing costly export delays.
Thus, configuring wave step codes with document prerequisites is the correct and most effective method for enforcing that shipments cannot be confirmed until export documentation is generated and validated.
Question 32:
A manufacturing company uses Dynamics 365 Supply Chain Management to manage production and component picking. Workers often struggle with picking accuracy because similar components are stored close together. Management wants to ensure that when picking instructions are generated, workers also receive image-based guidance for each component to reduce identification errors. You must configure the system to include product images on warehouse picking work instructions. What should you configure?
A) Work template field formatting
B) Product search configuration
C) Enhanced mobile device display settings
D) Product information management image attachments
Answer:
D
Explanation:
Product information management image attachments are essential for ensuring that product images appear on mobile device picking instructions. Option D is correct because attaching images at the product master or product variant level automatically makes those images available for display in the warehouse mobile app. This supports visual identification during picking and reduces errors caused by similar-looking components.
Option A, work template field formatting, allows structuring the fields shown on warehouse work instructions but cannot embed images. Work templates define the layout and order of fields such as item number, quantity, and location, but not media.
Option B, product search configuration, affects searchability for items but does not add images to picking instructions.
Option C, enhanced mobile device display settings, controls the look and feel of the mobile app but does not supply product images unless images are already attached in product information management.
This configuration is especially important when dealing with variant products where color, shape, or size differences may not be obvious from the item number or text description. Providing an image ensures workers quickly distinguish between components.
Thus, product information management image attachments are the correct and necessary configuration to display product images during warehouse picking.
Question 33:
A company uses Dynamics 365 Supply Chain Management to manage procurement. The purchasing department wants the system to automatically generate purchase orders for raw materials when production demand is created and materials are below required stock levels. The process must be fully automated without planner intervention. What should you configure?
A) Auto-firming in coverage groups
B) Purchase agreement commitments
C) Vendor lead time defaults
D) Demand forecasting models
Answer:
A
Explanation:
Auto-firming in coverage groups is the configuration required to automate the conversion of planned purchase orders into actual purchase orders without planner intervention. Option A is correct because firming logic in item coverage controls how Master Planning handles planned orders, including whether they convert automatically.
Coverage groups govern how items are planned. Auto-firming allows planners to set a firming time fence. Any planned purchase order that falls inside this time fence is automatically firmed when planning runs. This ensures that new supply orders are created when demand requires them, without users needing to review or manually firm each planned order.
Option B, purchase agreement commitments, govern pricing and long-term agreements but do not automate purchase order creation.
Option C, vendor lead time defaults, help calculate planning dates but do not create purchase orders.
Option D, demand forecasting models, project demand but do not create supply orders.
Auto-firming improves procurement efficiency, reduces delays, and ensures timely material availability.
Question 34:
A production company wants to reduce scrap by tracking actual quantities of components consumed during manufacturing. They also want to compare expected consumption from the BOM with actual consumption to identify inefficiencies. You must configure the system to allow workers to report actual material usage from the shop floor. What should you configure?
A) Consumption feedback
B) Backflushing rules
C) BOM line scrap factors
D) Production journal approval workflows
Answer:
A
Explanation:
Consumption feedback allows workers to report the actual quantities of materials used. Option A is correct because it enables detailed tracking of material usage versus expected BOM quantities. This supports variance analysis, cost control, and operational improvement initiatives.
Option B automatically consumes materials based on BOM quantities but does not record actual usage unless corrected manually.
Option C defines expected scrap but does not track actual consumption.
Option D governs approvals but not consumption entry.
With consumption feedback, workers can report material usage during or after production. The system compares actual usage with BOM expectations, identifying variances. This provides insight into overconsumption, underconsumption, poor BOM accuracy, or operational inefficiencies.
Question 35:
A company operates multiple distribution centers using Dynamics 365 Supply Chain Management. They want transfer orders to group into loads automatically based on destination and transportation preferences. They need the system to create loads without requiring user input. What should you configure?
A) Automatic load building templates
B) Shipment consolidation
C) Work template grouping
D) Transportation route plans
Answer:
A
Explanation:
Automatic load building templates generate loads automatically during wave processing. Option A is correct because these templates group transfer orders into loads based on rules such as destination, mode, carrier, or service level. This completely automates load creation.
Option B consolidates shipments but requires manual intervention.
Option C groups work but does not create loads.
Option D defines transportation routes but does not automate load creation.
Automatic load building saves time, ensures consistency, and supports high-volume warehouse operations by eliminating manual load-building tasks.
Question 36:
A global company uses Dynamics 365 Supply Chain Management to handle outbound shipments across multiple regional warehouses. Workers have difficulty determining the correct staging lanes for outbound loads because different customers and carriers require specific dock assignments. The logistics manager wants the system to automatically direct picked goods to the correct staging lane based on carrier, mode of delivery, and destination warehouse zone. You must ensure that staging locations are chosen automatically during warehouse work creation. What should you configure?
A) Location directives for pick and put
B) Work template containerization rules
C) Load planning workbench container groups
D) Shipment allocation methods
Answer:
A
Explanation:
Location directives for pick and put are the correct configuration because they determine where inventory should be placed during warehouse operations based on criteria such as carrier, destination, mode of delivery, and other shipment attributes. In Dynamics 365 Supply Chain Management, location directives serve as rule-based instructions that tell the system exactly which locations to use during different warehouse processes. When staging goods for outbound loads, put location directives play a vital role in determining the appropriate staging lane automatically, eliminating manual guesswork and reducing operational delays.
Option A is correct because location directives evaluate conditions dynamically. For example, you can configure location directives so that all shipments for Carrier X are routed to Staging Lane 1, while Carrier Y shipments route to Lane 3. Similarly, deliveries going to specific regions can be staged in unique zones to streamline trailer loading. The system evaluates these rules during work creation, ensuring that the put work line directs the worker to the correct lane automatically. This reduces training overhead, prevents staging bottlenecks, and supports high-volume outbound operations.
Option B, work template containerization rules, focuses on grouping items into containers and shipping units, not staging location selection. Although containerization integrates with outbound processing, it does not determine staging lanes.
Option C, load planning workbench container groups, is useful for organizing loads but does not assign warehouse staging locations.
Option D, shipment allocation methods, controls how shipments are grouped or selected but does not influence staging or put location decisions within the warehouse.
Thus, configuring location directives for pick and put is the most effective method to automate staging lane selection and ensure outbound loads are placed in the correct location.
Question 37:
A company using Dynamics 365 Supply Chain Management produces items that require strict quality checks at various stages of production. The quality department wants to ensure that inspection work is automatically generated whenever a production order reaches the reported-as-finished stage. They must prevent finished goods from being moved into available inventory until inspections are completed and results are recorded. What should you configure?
A) Quality order triggers
B) Batch disposition codes
C) Quarantine warehouse orders
D) Nonconformance review workflows
Answer:
A
Explanation:
Quality order triggers are the correct configuration because they allow the system to automatically create quality orders based on specific events such as production reporting, purchase receipts, and inventory movements. In this scenario, the company needs quality inspections to occur every time a production order is reported as finished. Quality order triggers ensure the system generates a new quality order at the precise moment the production process is completed, enforcing mandatory inspection before the goods become available for sale or additional processing.
Option A is correct because triggers can be defined to fire at key operational moments. Setting a trigger for the reported-as-finished event ensures that the moment the production worker posts the report, a quality order is generated. This prevents the inventory status from transitioning to available until the inspection is completed. The system can even place the product in a restricted status while quality orders are open, ensuring no stock is accidentally shipped or consumed internally.
Option B, batch disposition codes, classify batches but do not automatically generate inspections. They are applied after quality decisions, not before.
Option C, quarantine warehouse orders, move goods into a quarantine location but do not automatically create inspection tasks tied to production completion.
Option D, nonconformance review workflows, focus on documenting defects, not automatically generating inspections at production milestones.
Thus, quality order triggers are the correct configuration to ensure inspections automatically occur whenever goods are reported as finished in production.
Question 38:
A wholesale distributor uses Dynamics 365 Supply Chain Management to manage large numbers of sales orders. The sales manager wants to ensure orders are prioritized based on customer importance. High-value customers must always receive available inventory first, even if it means delaying lower-priority customers. You need to configure the system so that sales order reservation and wave allocation reflect customer priority automatically. What should you configure?
A) Order hold codes
B) Customer priority attributes
C) Reservation hierarchies
D) Work priority values
Answer:
B
Explanation:
Customer priority attributes are the correct configuration because they provide a structured way to classify customers and influence how inventory is allocated to their orders. In Dynamics 365, customer attributes allow businesses to assign numeric priority values that the system considers during reservation and allocation processes. Higher-priority customers receive inventory before others when supply is limited, ensuring service-level commitments are met and customer satisfaction remains high.
Option B is correct because customer attributes integrate directly with the reservation process. For example, a platinum customer might have priority level 1, gold level 2, and standard customer level 3. When sales orders for these customers enter the system, reservation logic uses these priority values to allocate available inventory in accordance with business rules. This ensures fairness and consistency based on organizational priorities.
Option A, order hold codes, delay processing but do not determine inventory priority.
Option C, reservation hierarchies, determine which dimensions (batch, serial, location, license plate) are used when reserving—not which customers receive inventory first.
Option D, work priority values, apply only to warehouse work—not sales order reservation.
Customer priority attributes improve fulfillment accuracy, reduce customer dissatisfaction, and provide transparent rules for inventory allocation.
Question 39:
A company managing multiple warehouses wants to ensure inventory transfers follow strict approval processes. Transfer orders must not be shipped until a warehouse manager approves the movement. The company wants this approval to be mandatory in the system. You must prevent transfer orders from being released to the warehouse unless approval has been granted. What should you configure?
A) Workflow for transfer orders
B) Release to warehouse rules
C) Transfer journal posting restrictions
D) Load confirmation requirements
Answer:
A
Explanation:
A workflow for transfer orders is the correct choice because it enforces mandatory approval before the system allows operational processing. Workflows in Dynamics 365 Supply Chain Management allow organizations to control business processes through approvals, tasks, and conditional rules. When applied to transfer orders, workflows prevent orders from being released until approval is granted.
Option A is correct because workflows integrate directly with transfer order status changes. By configuring a workflow that requires manager approval before release, the system ensures no warehouse work is created prematurely. This protects inventory integrity and prevents unauthorized movements.
Option B controls release parameters but does not enforce approval.
Option C restricts journals, not transfer orders.
Option D applies to loads, not transfer approvals.
Workflows provide visibility, audit trails, and consistent enforcement of business policies.
Question 40:
A food distribution company using Dynamics 365 Supply Chain Management must ensure all outbound shipments comply with FEFO rules. Products nearing expiration must be picked first. However, workers report that the system sometimes selects inventory based on location rather than expiration date. You must enforce FEFO rules consistently across all picking operations. What should you configure?
A) FEFO batch reservation rules
B) Batch disposition codes
C) Location profile fixed settings
D) ABC cycle counting groups
Answer:
A
Explanation:
FEFO batch reservation rules must be configured to enforce expiration-based picking. Option A is correct because FEFO ensures the system always selects the batch closest to its expiration date. This is essential in food distribution where non-compliance can lead to spoilage, financial loss, and regulatory penalties.
Option B classifies batches but does not enforce expiration-based picking.
Option C controls storage behavior, not expiration rotation.
Option D controls counting frequency, not picking logic.
FEFO batch reservation integrates with location directives to ensure consistent, automated enforcement of expiration-driven picking across all outbound processes.
