DRAG DROP -
You create and maintain items in Dynamics 365 Supply Chain Management.
You create a product master named S`"001 for metal screws. Screws come in three different lengths and two styles. You want to release only five of the six possible combinations.
You need to set up variants for the screw.
Which three actions should you perform in sequence? To answer, move the appropriate actions from the list of actions to the answer area and arrange them in the correct order.
Select and Place:
 

Your company recently implemented a Dynamics 365 Supply Chain Management system.
You are currently configuring costing methods for items in inventory. You need to make use of a method normally used for items that have a limited shelf life.
Which of the following is the costing method you should use?

A. Standard

B. FIFO

C. Average

D. Specific

A company is implementing Dynamics 365 Supply Chain Management in one legal entity that contains Site1 and Site2.
ItemA is a configured item, with configurations ConfigA and ConfigB. The business decides to stop buying ItemA ConfigB into Site2 but will still buy it at Site1.
You must configure ItemA to ensure the buying rules are implemented.
What should you configure?

A. Variant group

B. Select product variants to release

C. Variant suggestions

D. Default order setting rules

HOTSPOT
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Case study
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This is a case study. Case studies are not timed separately. You can use as much exam time as you would like to complete each case. However, there may be additional case studies and sections on this exam. You must manage your time to ensure that you are able to complete all questions included on this exam in the time provided.
To answer the questions included in a case study, you will need to reference information that is provided in the case study. Case studies might contain exhibits and other resources that provide more information about the scenario that is described in the case study. Each question is independent of the other questions in this case study.
At the end of this case study, a review screen will appear. This screen allows you to review your answers and to make changes before you move to the next section of the exam. After you begin a new section, you cannot return to this section.
To start the case study
-
To display the first question in this case study, click the Next button. Use the buttons in the left pane to explore the content of the case study before you answer the questions. Clicking these buttons displays information such as business requirements, existing environment, and problem statements. If the case study has an All Information tab, note that the information displayed is identical to the information displayed on the subsequent tabs. When you are ready to answer a question, click the Question button to return to the question.
Background
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School of Fine Art is a distribution company that sells school supply items to primary and secondary schools. These include items such as pens, pencils, paper, notebooks, chalk, desks, acrylic paints, blackboards, dry erase markers, and whiteboard paint. Due to increased demand for colored pencils, lead times are longer for these pencils. School of Fine Art plans to expand sales into this market.
School of Fine Art plans to implement Dynamics 365 Supply Chain Management to manage the business.
Current environment. Company structure
School of Fine Art consists of two legal entities.
Primary company
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• Located in Dublin, Ireland.
• Has a single named warehouse.
• Is the primary distribution center for both companies.
Second company
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• Is located in Glasgow, Scotland.
• Includes the following warehouses: Glasgow1, Glasgow2.
○ Glasgow1 is used primarily to supply items regionally.
○ Glasgow2 serves as local storage for vendor-owned inventory and bulk storage for School of Fine Art's inventory.
Current environment. General processes
School of Fine Art uses a combination of spreadsheets and paper forms to manage the business.
• All sales, purchases, and inventory are tracked in spreadsheets that are password protected by managers.
• Managers frequently share spreadsheet passwords so that other users can make edits on their behalf. Inventory quantities and values are unreliable.
• The spreadsheets are often incorrectly updated, have entry errors, and broken formulas for calculations.
• Purchase order receipts, picking lists, packing slips, and invoices are all handwritten on pre-printed, three-part forms.
• Late summer is the company's busiest time. During this time, workers are typically on the warehouse floor or making rush deliveries to schools to meet last-minute needs.
Current environment. Inventory and warehousing
• School of Fine Art values inventory by using FIFO costing methods.
• Inventory in the warehouses cannot be distinguished as available inventory or inventory that is sold to a customer and waiting to be picked. This creates inventory inflation during cycle counts and later shortages because warehouse workers count items that are already promised to customers and waiting to be shipped.
• Glasgow2 space is fully allocated to vendors.
• Due to space constraints, school orders for photocopiers are shipped from the vendor to the school.
• Crayons are stored as separate item numbers depending on whether they are in a box or a case. This creates issues when counting inventory to determine the total number of crayons in stock.
• Lack of inventory controls has led to shortages on sales orders, creating backorders and unhappy schools.
• Inventory is ordered quarterly due to the seasonality of the business.
• Items can change annually based on popular sizes, colors, and styles for each new school season. The creation of the different configurations is a manual process, which creates so much overhead that temporary workers are brought in to do the data entry.
Current environment. Purchasing
• Reordering is manually managed by the buyers looking at the seasonal spikes for the start of the school year, slowing around the end-of-year holidays until the following school year.
• Pens are readily available products that are rarely discounted for sale.
• Photocopiers are only available for sale on the Glasgow region.
• Photocopy paper and construction paper are ordered by the pallet into Dublin1 and must be broken down into smaller sizes. The pallets are typically broken down and then split between what stays in Dublin1 and what is shipped to Glasgow1.
• Chalk and blackboards are slower sellers, so many vendors do not carry these items. School of Fine Art purchases these products from a single vendor. There are no alternative vendors available.
• School of Fine Art agrees to purchase a new line of smartboards from a vendor. The agreed-upon smartboard purchase prices will have a cost price per 55-inch, 75-inch, or 85-inch smartboard.
• The company purchases pencils for the following warehouses:
○ Glasgow1:
• standard pencils from Vendor A
• colored pencils from Vendor B
○ Dublin1:
• standard pencils from Vendor A
• colored pencils from Vendor A
• As whiteboard paint grows in popularity, so does the demand. This causes supply shortages. Whiteboard paint is ordered six months in advance.
Current environment. Customer sales
• The company contractually agrees to prices for some items with schools prior to the start of each school year.
• Schools may order bulk cases of products and choose to distribute further breakdowns, such as a case of crayons, which are then distributed to classrooms by the box.
• Pens do not require contracts with schools because they are low margin and do not have supply chain shortages.
• Painting supplies such as acrylic paint, canvases, and easels do not require a special contract and are sold at regular list price to all schools.
• Schools that offer painting classes are part of a program that provides special pricing on the painting supplies.
• Chalk and blackboards are ordered less frequently than they were in past years. Schools are choosing to use whiteboard paint, which is a lower cost than ordering and installing the whiteboards.
Requirements. Customers and sales
• The system must have the ability to limit product purchase amounts by a single school to prevent stock shortages for other schools.
• Schools are obligated to purchase the agreed amount for specific items per the school year.
• Customer service must be able to easily enter items for sales orders and identify stock shortages.
• Sales of whiteboard paint must be limited so that one school does not buy all the inventory and force backorders for other schools.
• Schools must agree to the amount of whiteboard paint they will purchase for the whole school year.
Requirements. Inventory costing
• Inventory must have associated costs except for the vendor storage in Glasgow2.
• The vendor storage must still contain quantities but not include cost in inventory valuations.
• At the end of each month, the costing manager must be able to identify how many items will not be fully settled.
• Annual configuration changes to items must be automatically created where possible.
• The company must be able to track costs for colored pencils and standard pencils separately.
Requirements. Inventory
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• Warehouse workers must be able to use their mobile phones and the mobile app to take calls and create transactions in the warehouse.
• The desks must use a single item number and barcode regardless of year manufactured and the vendor.
• Water-based paints from the vendor must be received in pails.
• Acrylic paint must be managed by batches and expiration dates.
• Pencils must be categorized as colored pencils or standard pencils. The individual colors of each colored pencil (such as red, green, and blue) will not be tracked.
• The creation of unique smartboard items must be kept to a minimum.
Issues
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• WarehouseWorker1 works in Glasgow2. The worker receives a request to ship pallets of paper from the warehouse to Glasgow1 and Dublin1. WarehouseWorker1 must create the shipments in the system to transfer the pallets of paper from Glasgow1 to Dublin1.
• The number of backorders for desks has increased. Customer service representatives struggle to select a desk item number that has inventory on hand. The desks are the same item, but the manufacturer vendor and year differ.
• A school calls customer service to report that its photocopier is broken. The school needs expedited shipment of a replacement.
• A school that is part of the special paint program reports that a sale price on canvas last month was a better price than its paint program price. The school requests a price adjustment.
• A school reports that different shipments of acrylic paints are slightly different in color.
• The sales team decides to have a flash sale on pens for one month only. The person entering the Sales order line should be able to communicate the information to the customer on the Sales order line.
• Schools are reporting that chalk and blackboards are broken upon receipt. A worker in Dublin1 opens some cases of these products in the warehouse and finds that they are also broken. You must implement processes to enforce inventory inspection for a percentage of each purchase order line received. You must block all inventory for a purchase order line if the inspection fails.
You must configure pen flash sale prices.
What should you configure? To answer, select the appropriate option in the answer area.
NOTE: Each correct selection is worth one point.
 

SIMULATION -
Your company makes use of a Dynamics 365 Supply Chain Management system. The company has many distribution warehouses across the USA.
You have been tasked with setting up barcodes to allow for scanning. These barcodes will be entered automatically.
Access the Dynamics 365 portal to achieve this goal.

An employee at a company releases a new product from the Released product maintenance workspace.
An employee in another department is unable to add the product to a sales order. You determine that dimension groups have not been applied to the product.
You need to ensure that the product can be added to the sales order.
Which two inventory dimension groups should you add to the product? Each correct answer presents part of the solution.
NOTE: Each correct selection is worth one point.

A. Tracking dimension group

B. Coverage group

C. Product dimension group

D. Storage dimension group

You need to set up the procurement category hierarchy in accordance with company policy.
What should you do?

A. Add four nodes to the category hierarchy, one for US, one for Hungary, one for California, and one for Colorado.

B. Create category hierarchy nodes per each country underneath the consolidated legal entity.

C. Add three nodes to the category hierarchy, one for Hungary, one for California, and one for Colorado.

D. Create a procurement category hierarchy and assign purchase policy per legal entity only.

A company has revenue items that generate high, medium, or low revenue.
You need to configure ABC classifications as follows:
 
Which two actions should you perform? Each correct answer presents part of the solution.
NOTE: Each correct selection is worth one point.

A. Define highest, middle, and lowest ABC values as percentages

B. Define highest, middle, and lowest ABC values as amounts

C. Select ABC model of revenue

D. Define internal interest in percentage

E. Select ABC model of value

HOTSPOT
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Case study
-
This is a case study. Case studies are not timed separately. You can use as much exam time as you would like to complete each case. However, there may be additional case studies and sections on this exam. You must manage your time to ensure that you are able to complete all questions included on this exam in the time provided.
To answer the questions included in a case study, you will need to reference information that is provided in the case study. Case studies might contain exhibits and other resources that provide more information about the scenario that is described in the case study. Each question is independent of the other questions in this case study.
At the end of this case study, a review screen will appear. This screen allows you to review your answers and to make changes before you move to the next section of the exam. After you begin a new section, you cannot return to this section.
To start the case study
-
To display the first question in this case study, click the Next button. Use the buttons in the left pane to explore the content of the case study before you answer the questions. Clicking these buttons displays information such as business requirements, existing environment, and problem statements. If the case study has an All Information tab, note that the information displayed is identical to the information displayed on the subsequent tabs. When you are ready to answer a question, click the Question button to return to the question.
Background
-
Trey Research is a multinational manufacturer of health and dietary supplements based in Seattle, Washington. The company is experiencing a rapid expansion not only in its supplements but as a lifestyle brand that also sells apparel. The supplements and apparel businesses operate independently but manufacture and operate in the same legal entity.
Current environment
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Current environment. Technology
Trey Research is migrating from an outdated, on-premises version of Dynamics AX to Dynamics 365 Supply Chain Management. The company wants to retain a lot of its current data structures and processes but adopt new efficiencies when the benefit is obvious. The company uses a third-party e-commerce site that is custom developed by an internal developer.
Current environment. Items
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Product numbering
-
All items are numbered by using a smart numbering format: [Product SKU+Size+Color+Style]. For reporting, items are queried for sales and inventory reports by using the first six digits of the item number or until the first dash is encountered.
• A t-shirt could be 01001-S-Red for item 1001 in a size small with the color red.
• A single energy drink could be 02001-12oz or 02001-20oz for the different sizes that product 02001 is sold in.
Product attributes
-
• All clothing shares the same set of product attributes.
• Supplements may share the same Product SKU but can have different attributes for the different size, color, or style variations of the product.
• Product attributes that are unnecessary for an item should be excluded from the item.
Pricing
-
• All items always have a default price. This price will not expire.
• An item will have four different prices created for it every month, one for each customer tier, as detailed later in this section. The pricing expires at the end of the month. If no special pricing is created, the default item price will be used.
• The monthly sales price in which the additional price breaks are determined is based on the estimated cost of the manufactured items.
• Customers are categorized into four pricing tiers (A, B, C, and D) based on sales volume over the past 12 months.
• Customers can negotiate special pricing for items in 30-day, 60-day, and 90-day increments. Quantity restrictions may be placed, depending on the item discount and promotion.
• Promotional pricing is not used today. Pricing is restricted to monthly prices and customer-specific contract pricing.
Cost
-
Items use a FIFO costing model today in their current Dynamics AX 2009 environment; however, using the FIFO costing method has created problems.
Current environment. Warehouse and inventory
• Warehouse requirements are simplistic. There is only one site. The site has two warehouses.
• Trey Research needs to make sure that any energy drinks and nutritional supplements are manufactured and packaged with the highest standards. Trey Research automatically inspects products when all products are reported as finished. All products are inspected again when the items are picked.
• Energy drinks require independent tests to check for dents in packaging, carbonation levels, and fill level.
• Nutritional supplements require separate tests for packaging, expiration date, product seal, and product labeling.
• Government compliancy and consistency testing are handled outside of the Enterprise Resource Planning (ERP) system.
• Resalable products are placed on one of two racks in the warehouse.
Requirements
-
Requirements. Technology
-
• Trey Research will integrate all pricing and discount capabilities to its e-commerce website.
Requirements. Items
-
• Reporting on products should be streamlined as much as possible.
• The item numbering does not have to equate to the actual item number.
• The future costing methods adopted must be commonly accepted for manufacturers.
• Inventory costing should be done after a full inventory valuation is complete. It should take into consideration the direct materials, direct labor, and overhead that goes into an item.
• Any costing method used needs the ability to track cost records about an item, cost categories, and calculation formulas for indirect costs.
• The profitability for nutritional supplements manufacturing processes needs to be expressed in terms of the cost categories for routing operations and the calculation formulas for manufacturing overheads.
• If a vendor can no longer deliver the raw materials for the energy drinks due to supply chain issues, the costs for using an alternative vendor to source the raw materials should be used to determine the impact on profits.
• Apparel items will not be upgraded to the new costing method until after the go-live date due to resourcing and implementation limitations from the apparel team.
Requirements. Pricing
-
• Trey Research plans to do promotional pricing. Certain products will receive special pricing during the hours of extreme sporting events that Trey Research sponsors. Before or after the event, normal pricing will resume.
Requirements. White labeling
-
• Trey Research wants to start white labeling its products under the brands of major nutritional retail store brands. These products would only be sold to specific customers.
• Trey Research will provide and maintain a 'Compare to' price for customers to use to compare the white-labeled products. This Compare to price will also be the default item price for the customer if the customer accidentally lets a contract price expire.
• The configuration of these restrictions must be applied automatically when creating new products for those customers.
Requirements. Warehouse and inventory
• If products in the warehouse must be blocked from transactions for a specific reason, such as a health and safety review, warehouse users should be able to block the products quickly from the ERP system.
• All product quality tests should be processed in a uniform and consistent manner.
• Creation of any quality processes for products inbound to the warehouse, from the production line, or outbound from the warehouse to consumers should be automatically created to facilitate execution.
• Testing requirements:
◦ Requirement 1: 100 percent of all nutritional supplements and 50 percent of all energy drinks must be tested when production orders are completed. After a product is in testing, 100 percent of all tests must be completed.
◦ Requirement 2: 75 percent of all nutritional supplements and energy drinks should be tested against their required tests during an outbound process.
◦ Damaged products must be placed in one of four bins (based on product type) during the inspection process.
◦ You must define quarantine zones to optimize product visibility throughout the testing process.
You need to configure the extreme sports discounts.
Which component should you use? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.
 

During testing of your company's new implementation of the Dynamics 365 Supply Chain Management procurement module, you notice that, when an item is received, transactions aren't posted to the product receipt journal.
You need to resolve this issue.
Which of the following actions should you take on the Item model group setup form?

A. You should consider un-checking the Include physical value checkbox.

B. You should consider checking the Include physical value checkbox.

C. You should consider un-checking the Accrue liability on product receipt checkbox.

D. You should consider checking the Accrue liability on product receipt checkbox.

DRAG DROP
-
Case study
-
This is a case study. Case studies are not timed separately. You can use as much exam time as you would like to complete each case. However, there may be additional case studies and sections on this exam. You must manage your time to ensure that you are able to complete all questions included on this exam in the time provided.
To answer the questions included in a case study, you will need to reference information that is provided in the case study. Case studies might contain exhibits and other resources that provide more information about the scenario that is described in the case study. Each question is independent of the other questions in this case study.
At the end of this case study, a review screen will appear. This screen allows you to review your answers and to make changes before you move to the next section of the exam. After you begin a new section, you cannot return to this section.
To start the case study
-
To display the first question in this case study, click the Next button. Use the buttons in the left pane to explore the content of the case study before you answer the questions. Clicking these buttons displays information such as business requirements, existing environment, and problem statements. If the case study has an All Information tab, note that the information displayed is identical to the information displayed on the subsequent tabs. When you are ready to answer a question, click the Question button to return to the question.
Background
-
Trey Research is a multinational manufacturer of health and dietary supplements based in Seattle, Washington. The company is experiencing a rapid expansion not only in its supplements but as a lifestyle brand that also sells apparel. The supplements and apparel businesses operate independently but manufacture and operate in the same legal entity.
Current environment
-
Current environment. Technology
Trey Research is migrating from an outdated, on-premises version of Dynamics AX to Dynamics 365 Supply Chain Management. The company wants to retain a lot of its current data structures and processes but adopt new efficiencies when the benefit is obvious. The company uses a third-party e-commerce site that is custom developed by an internal developer.
Current environment. Items
-
Product numbering
-
All items are numbered by using a smart numbering format: [Product SKU+Size+Color+Style]. For reporting, items are queried for sales and inventory reports by using the first six digits of the item number or until the first dash is encountered.
• A t-shirt could be 01001-S-Red for item 1001 in a size small with the color red.
• A single energy drink could be 02001-12oz or 02001-20oz for the different sizes that product 02001 is sold in.
Product attributes
-
• All clothing shares the same set of product attributes.
• Supplements may share the same Product SKU but can have different attributes for the different size, color, or style variations of the product.
• Product attributes that are unnecessary for an item should be excluded from the item.
Pricing
-
• All items always have a default price. This price will not expire.
• An item will have four different prices created for it every month, one for each customer tier, as detailed later in this section. The pricing expires at the end of the month. If no special pricing is created, the default item price will be used.
• The monthly sales price in which the additional price breaks are determined is based on the estimated cost of the manufactured items.
• Customers are categorized into four pricing tiers (A, B, C, and D) based on sales volume over the past 12 months.
• Customers can negotiate special pricing for items in 30-day, 60-day, and 90-day increments. Quantity restrictions may be placed, depending on the item discount and promotion.
• Promotional pricing is not used today. Pricing is restricted to monthly prices and customer-specific contract pricing.
Cost
-
Items use a FIFO costing model today in their current Dynamics AX 2009 environment; however, using the FIFO costing method has created problems.
Current environment. Warehouse and inventory
• Warehouse requirements are simplistic. There is only one site. The site has two warehouses.
• Trey Research needs to make sure that any energy drinks and nutritional supplements are manufactured and packaged with the highest standards. Trey Research automatically inspects products when all products are reported as finished. All products are inspected again when the items are picked.
• Energy drinks require independent tests to check for dents in packaging, carbonation levels, and fill level.
• Nutritional supplements require separate tests for packaging, expiration date, product seal, and product labeling.
• Government compliancy and consistency testing are handled outside of the Enterprise Resource Planning (ERP) system.
• Resalable products are placed on one of two racks in the warehouse.
Requirements
-
Requirements. Technology
-
• Trey Research will integrate all pricing and discount capabilities to its e-commerce website.
Requirements. Items
-
• Reporting on products should be streamlined as much as possible.
• The item numbering does not have to equate to the actual item number.
• The future costing methods adopted must be commonly accepted for manufacturers.
• Inventory costing should be done after a full inventory valuation is complete. It should take into consideration the direct materials, direct labor, and overhead that goes into an item.
• Any costing method used needs the ability to track cost records about an item, cost categories, and calculation formulas for indirect costs.
• The profitability for nutritional supplements manufacturing processes needs to be expressed in terms of the cost categories for routing operations and the calculation formulas for manufacturing overheads.
• If a vendor can no longer deliver the raw materials for the energy drinks due to supply chain issues, the costs for using an alternative vendor to source the raw materials should be used to determine the impact on profits.
• Apparel items will not be upgraded to the new costing method until after the go-live date due to resourcing and implementation limitations from the apparel team.
Requirements. Pricing
-
• Trey Research plans to do promotional pricing. Certain products will receive special pricing during the hours of extreme sporting events that Trey Research sponsors. Before or after the event, normal pricing will resume.
Requirements. White labeling
-
• Trey Research wants to start white labeling its products under the brands of major nutritional retail store brands. These products would only be sold to specific customers.
• Trey Research will provide and maintain a 'Compare to' price for customers to use to compare the white-labeled products. This Compare to price will also be the default item price for the customer if the customer accidentally lets a contract price expire.
• The configuration of these restrictions must be applied automatically when creating new products for those customers.
Requirements. Warehouse and inventory
• If products in the warehouse must be blocked from transactions for a specific reason, such as a health and safety review, warehouse users should be able to block the products quickly from the ERP system.
• All product quality tests should be processed in a uniform and consistent manner.
• Creation of any quality processes for products inbound to the warehouse, from the production line, or outbound from the warehouse to consumers should be automatically created to facilitate execution.
• Testing requirements:
◦ Requirement 1: 100 percent of all nutritional supplements and 50 percent of all energy drinks must be tested when production orders are completed. After a product is in testing, 100 percent of all tests must be completed.
◦ Requirement 2: 75 percent of all nutritional supplements and energy drinks should be tested against their required tests during an outbound process.
◦ Damaged products must be placed in one of four bins (based on product type) during the inspection process.
◦ You must define quarantine zones to optimize product visibility throughout the testing process.
You need to configure the system for the new products that the company produces.
Which product type should you use? To answer, drag the appropriate product types to the correct products. Each product type may be used once, more than once, or not at all. You may need to drag the split bar between panes or scroll to view content.
NOTE: Each correct selection is worth one point.
 

A manufacturing establishment makes use of a Dynamics 365 Supply Chain Management system.
To accelerate setup, they use bill of materials (BOM) templates.
Which of the following is TRUE with regards to template BOMs? (Choose all that apply.)

A. You can only apply a single template BOM to a service object.

B. You can apply many template BOMs to a service object.

C. You can modify or delete lines in a BOM template regardless of whether the template has been associated to a service object, or not.

D. You can modify or delete lines in a BOM template as long as the template has not been associated to a service object.

You need to set up financial components for the new items.
Which two actions should you perform? Each correct answer presents part of the solution.
NOTE: Each correct selection is worth one point.

A. Assign items to a FIFO item model group.

B. Assign the raw materials to a standard cost item model group. Assign finished goods to a FIFO item model group.

C. Create item model groups for raw materials and finished goods by using different ledger accounts. Assign items to these groups.

D. Assign raw materials to a standard cost item group. Assign finished goods to a FIFO item group.

E. Create item groups for raw materials and finished goods by using different ledger accounts. Assign items to these groups.

A company uses Dynamics 365 Supply Chain Management and implements procurement categories.
Purchase requisitions are required for the purchase of procurement category goods.
You need to ensure that the company purchases office supplies only from one specific vendor.
Which two actions should you perform? Each correct answer presents part of the solution.
NOTE: Each correct selection is worth one point.

A. Add the preferred vendor to the office supplies procurement category setup

B. Create a preferred trade agreement for the office supplies vendor

C. In purchasing policies, configure a specific category policy for office supplies

D. In purchasing policies, create a Purchase requisition control rule

E. Configure the purchase requisition workflow to specify the office supplies vendor

You need to reduce the fulfillment team's workload.
Which form should you use?

A. Default order settings

B. Item model group

C. Sales and marketing parameters

D. Released products

E. Product and information management parameters

HOTSPOT -
You need to meet the operational requirements for VendorB.
What should you do? To answer, select the appropriate options in the area.
NOTE: Each correct selection is worth one point.
Hot Area:
 

HOTSPOT -
A parent company owns two subsidiaries.
Some of the products manufactured in one of the subsidiaries must be sold to the other subsidiary so they can be sold in retail stores.
You need to configure the customer and products for intercompany setup.
How should you configure the setup? To answer, select the appropriate options in the answer areas.
NOTE: Each selection is worth one point.
Hot Area:
 

HOTSPOT -
You need to configure the bike properties based on the requirements.
Which configuration should you use for each requirement? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.
Hot Area:
 

Your company makes use of a Dynamics 365 Supply Chain Management system.
After implementing warehouse locations, you are tasked with configuring location directives for inventory movement.
You need to make use of a location directive that allows for the identification of similar items in the warehouse.
Which of the following is the strategy you should use?

A. Match packing quantity

B. Location aging FIFO

C. Location aging LIFO

D. Consolidate

A company is implementing the Warehouse management module in Dynamics 365 Supply Chain Management.
The company will receive an item in three units of measure (UOM): each, case, and pallet. The item must be counted from a mobile device in each UOM or case UOM only by the warehouse worker.
You must configure the item.
What should you configure?

A. Create a reservation hierarchy and define the rules.

B. Set the default inventory unit of measure to each and the default purchase and sell unit to case.

C. Create one unit sequence group and enable counting per unit of measure.

D. Set the default inventory unit of measure to each and assign the default item set up to case.

E. Create separate unit sequence groups, one for case counting and one for each counting.

A buyer places a purchase requisition for item C0001 from a new vendor.
All purchases from a new vendor must go through an internal workflow approval process.
You need to ensure that a purchase order (PO) is automatically created from the purchase requisition.
Which setup must be in place?

A. Status = approved, item = C0001, vendor populated on the PO

B. Status = in review, item = C0001, vendor populated on the purchase requisition

C. Status = approved, item = C0001, vendor populated on the purchase requisition

D. Status = draft, item = C0001, vendor populated on the PO

HOTSPOT -
You need to configure the system to meet the item testing requirements.
How should you configure the system? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.
Hot Area:
 

DRAG DROP -
A company uses Dynamics 365 Supply Chain Management with basic warehouse processes. Mobile devices are not used in the two warehouses. Warehouse items that have an A classification are counted weekly through automatic cycle count journals that are created per warehouse.
Items that are in both warehouses appear only in one journal for counting. Counts are inaccurate because picking is posted against items that are being counted.
You need to resolve the cycle count issues. To answer, drag the appropriate configurations to the correct requirements. Each configuration may be used once, more than once, or not at all. You may need to drag the split bar between panes or scroll to view content.
NOTE: Each correct selection is worth one point.
Select and Place:
 

DRAG DROP
-
A company is implementing Dynamics 365 Supply Chain Management for new warehouse management operations.
A three-tier workflow is being implemented for planned order approval. It is anticipated that a few days will need to be added to process the new planned orders.
During the yearly renegotiation of pricing, contractual lead times rather than the actual lead times are used. Vendor score card analysis shows that certain vendors are often late in their shipments from their contractual lead time dates.
Shipping delays to customers are likely for the next three months while the new warehouse operations are adopted.
You need to configure safety margins to account for the new system processes.
Which safety margin should you use for each process? To answer, drag the appropriate safety margins to the correct processes. Each safety margin may be used once, more than once, or not at all. You may need to drag the split bar between panes or scroll to view content.
NOTE: Each correct selection is worth one point.
 

A company uses planning optimization in Dynamics 365 Supply Chain Management. Automatic firming is enabled.
Some of the planned purchase orders are not being firmed as expected. The inventory planners therefore need to manually process planned purchase orders.
You need to include the planned purchase orders in automatic firming.
What are two possible configurations you can use? Each correct answer presents a complete solution.
NOTE: Each correct selection is worth one point.

A. Lead Time

B. Automatic firming time fence (days)

C. Requirements Date

D. Freeze time fence on master plan

HOTSPOT -
You need to ensure that a customer can verify that a bike they purchased has passed the 21-point inspection.
Which configurations should you use? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.
Hot Area:
 

After you answer a question in this section, you will NOT be able to return to it. As a result, these questions will not appear in the review screen.
A company uses Dynamics 365 Supply Chain Management to manage inventory.
Backorders exist on customer sales orders because incorrect data was given on product quantities.
Users need to look up what quantity can be sold and when more product will arrive.
Solution: Ordered shows what quantities are on inbound orders to the warehouse.
Does the solution meet the goal?

A. Yes

B. No

HOTSPOT -
You need to configure the solution to replace the Excel spreadsheet.
Which feature should you use for each requirement? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.
Hot Area:
 

A manufacturing company uses Dynamics 365 Supply Chain Management.
The company replaced its burners to limit carbon dioxide emissions. The new burners require frequent servicing to be compliant with environmental regulations. The new burners are more complex and take longer to service than the previous burners.
The production controller must track fuel use in liters to schedule timely maintenance. The additional time taken to plan maintenance must be considered.
You must configure the system to meet the requirements.
Which two actions should you perform? Each correct answer presents part of the solution.
NOTE: Each correct selection is worth one point.

A. Register consumption.

B. Configure counter types.

C. Set up asset service level.

D. Configure asset BOM.

E. Create attributes.

You are the logistics manager at a distribution company.
Your primary carrier service provides rates for transportation between New York City and Colorado. These rates are a flat rate depending on the city or general area of pickup as follows:
•	New York City = $500
•	Colorado = $450
You need to set up Transportation Management to calculate the rate from New York City to Colorado.
What should you do?

A. Use a Point-to-Point engine based on weight and miles. Assign rates from New York City as the starting location and Colorado as the ending location and break the rates out based on the weight of the package.

B. Using the Point-to-Point engine with an empty break master, assign rates based on starting and ending locations.

C. Create a Shipping carrier and service. Create carrier accessorial charges to represent the rates for each location.

D. Set up A Transit Time Engine to track days from New York City to Colorado. Set up rates in the Rate Master tied to day breaks.

Your company makes use of a Dynamics 365 Supply Chain Management system.
You are tasked with amending inventory. Additionally, the existing item posting configuration must be overridden.
You make use of the movement journal.
Does the action achieve your objective?

A. Yes, it does

B. No, it does not

You need to configure the structure for the new line of perfumes.
What should you do first?

A. Create a procurement category hierarchy.

B. Create a new product with tracking dimensions.

C. Create a new product with storage dimensions.

D. Create product configurations.

E. Set up a new product master and implement serial tracking.

HOTSPOT -
You need to configure a product attribute to indicate whether a product is a limited edition.
Which configuration should you use for each attribute. To answer, select the appropriate option in the answer area.
NOTE: Each correct selection is worth one point.
Hot Area:
 

SIMULATION -
Your company's distribution center supplies a large number of retail stores.
After procuring a big shipment of a new line of products, you have been tasked with configuring buyer push functionality so that the product is equally distributed to the retail stores.
You need to create the transfer order.
Access the Dynamics 365 portal to achieve this goal.

You need to configure the detection of multi-staged attacks to meet the monitoring requirements.
What should you do?

A. Customize the Microsoft Sentinel rule logic.

B. Create a workbook.

C. Add Microsoft Sentinel data connectors.

D. Add an Microsoft Sentinel playbook.

Case study -
This is a case study. Case studies are not timed separately. You can use as much exam time as you would like to complete each case. However, there may be additional case studies and sections on this exam. You must manage your time to ensure that you are able to complete all questions included on this exam in the time provided.
To answer the questions included in a case study, you will need to reference information that is provided in the case study. Case studies might contain exhibits and other resources that provide more information about the scenario that is described in the case study. Each question is independent of the other questions in this case study.
At the end of this case study, a review screen will appear. This screen allows you to review your answers and to make changes before you move to the next section of the exam. After you begin a new section, you cannot return to this section.
To start the case study -
To display the first question in this case study, click the Next button. Use the buttons in the left pane to explore the content of the case study before you answer the questions. Clicking these buttons displays information such as business requirements, existing environment, and problem statements. If the case study has an All Information tab, note that the information displayed is identical to the information displayed on the subsequent tabs. When you are ready to answer a question, click the Question button to return to the question.
Background -
School of Fine Art is a distribution company that sells school supply items to primary and secondary schools. These include items such as pens, pencils, paper, notebooks, chalk, desks, acrylic paints, blackboards, dry erase markers, and whiteboard paint. Due to increased demand for colored pencils, lead times are longer for these pencils. School of Fine Art plans to expand sales into this market.
School of Fine Art plans to implement Dynamics 365 Supply Chain Management to manage the business.
Current environment. Company structure
School of Fine Art consists of two legal entities.
Primary company -
• Located in Dublin, Ireland.
• Has a single named warehouse.
• Is the primary distribution center for both companies.
Second company -
• Is located in Glasgow, Scotland.
• Includes the following warehouses: Glasgow1, Glasgow2.
○ Glasgow1 is used primarily to supply items regionally.
○ Glasgow2 serves as local storage for vendor-owned inventory and bulk storage for School of Fine Art's inventory.
Current environment. General processes
School of Fine Art uses a combination of spreadsheets and paper forms to manage the business.
• All sales, purchases, and inventory are tracked in spreadsheets that are password protected by managers.
• Managers frequently share spreadsheet passwords so that other users can make edits on their behalf. Inventory quantities and values are unreliable.
• The spreadsheets are often incorrectly updated, have entry errors, and broken formulas for calculations.
• Purchase order receipts, picking lists, packing slips, and invoices are all handwritten on pre-printed, three-part forms.
• Late summer is the company's busiest time. During this time, workers are typically on the warehouse floor or making rush deliveries to schools to meet last-minute needs.
Current environment. Inventory and warehousing
• School of Fine Art values inventory by using FIFO costing methods.
• Inventory in the warehouses cannot be distinguished as available inventory or inventory that is sold to a customer and waiting to be picked. This creates inventory inflation during cycle counts and later shortages because warehouse workers count items that are already promised to customers and waiting to be shipped.
• Glasgow2 space is fully allocated to vendors.
• Due to space constraints, school orders for photocopiers are shipped from the vendor to the school.
• Crayons are stored as separate item numbers depending on whether they are in a box or a case. This creates issues when counting inventory to determine the total number of crayons in stock.
• Lack of inventory controls has led to shortages on sales orders, creating backorders and unhappy schools.
• Inventory is ordered quarterly due to the seasonality of the business.
• Items can change annually based on popular sizes, colors, and styles for each new school season. The creation of the different configurations is a manual process, which creates so much overhead that temporary workers are brought in to do the data entry.
Current environment. Purchasing -
• Reordering is manually managed by the buyers looking at the seasonal spikes for the start of the school year, slowing around the end-of-year holidays until the following school year.
• Pens are readily available products that are rarely discounted for sale.
• Photocopiers are only available for sale on the Glasgow region.
• Photocopy paper and construction paper are ordered by the pallet into Dublin1 and must be broken down into smaller sizes. The pallets are typically broken down and then split between what stays in Dublin1 and what is shipped to Glasgow1.
• Chalk and blackboards are slower sellers, so many vendors do not carry these items. School of Fine Art purchases these products from a single vendor. There are no alternative vendors available.
• School of Fine Art agrees to purchase a new line of smartboards from a vendor. The agreed-upon smartboard purchase prices will have a cost price per 55-inch, 75-inch, or 85-inch smartboard.
• The company purchases pencils for the following warehouses:
○ Glasgow1:
• standard pencils from Vendor A
• colored pencils from Vendor B
○ Dublin1:
• standard pencils from Vendor A
• colored pencils from Vendor A
• As whiteboard paint grows in popularity, so does the demand. This causes supply shortages. Whiteboard paint is ordered six months in advance.
Current environment. Customer sales
• The company contractually agrees to prices for some items with schools prior to the start of each school year.
• Schools may order bulk cases of products and choose to distribute further breakdowns, such as a case of crayons, which are then distributed to classrooms by the box.
• Pens do not require contracts with schools because they are low margin and do not have supply chain shortages.
• Painting supplies such as acrylic paint, canvases, and easels do not require a special contract and are sold at regular list price to all schools.
• Schools that offer painting classes are part of a program that provides special pricing on the painting supplies.
• Chalk and blackboards are ordered less frequently than they were in past years. Schools are choosing to use whiteboard paint, which is a lower cost than ordering and installing the whiteboards.
Requirements. Customers and sales
• The system must have the ability to limit product purchase amounts by a single school to prevent stock shortages for other schools.
• Schools are obligated to purchase the agreed amount for specific items per the school year.
• Customer service must be able to easily enter items for sales orders and identify stock shortages.
• Sales of whiteboard paint must be limited so that one school does not buy all the inventory and force backorders for other schools.
• Schools must agree to the amount of whiteboard paint they will purchase for the whole school year.
Requirements. Inventory costing -
• Inventory must have associated costs except for the vendor storage in Glasgow2.
• The vendor storage must still contain quantities but not include cost in inventory valuations.
• At the end of each month, the costing manager must be able to identify how many items will not be fully settled.
• Annual configuration changes to items must be automatically created where possible.
• The company must be able to track costs for colored pencils and standard pencils separately.
Requirements. Inventory -
• Warehouse workers must be able to use their mobile phones and the mobile app to take calls and create transactions in the warehouse.
• The desks must use a single item number and barcode regardless of year manufactured and the vendor.
• Water-based paints from the vendor must be received in pails.
• Acrylic paint must be managed by batches and expiration dates.
• Pencils must be categorized as colored pencils or standard pencils. The individual colors of each colored pencil (such as red, green, and blue) will not be tracked.
• The creation of unique smartboard items must be kept to a minimum.
Issues -
• WarehouseWorker1 works in Glasgow2. The worker receives a request to ship pallets of paper from the warehouse to Glasgow1 and Dublin1. WarehouseWorker1 must create the shipments in the system to transfer the pallets of paper from Glasgow1 to Dublin1.
• The number of backorders for desks has increased. Customer service representatives struggle to select a desk item number that has inventory on hand. The desks are the same item, but the manufacturer vendor and year differ.
• A school calls customer service to report that its photocopier is broken. The school needs expedited shipment of a replacement.
• A school that is part of the special paint program reports that a sale price on canvas last month was a better price than its paint program price. The school requests a price adjustment.
• A school reports that different shipments of acrylic paints are slightly different in color.
• The sales team decides to have a flash sale on pens for one month only. The person entering the Sales order line should be able to communicate the information to the customer on the Sales order line.
• Schools are reporting that chalk and blackboards are broken upon receipt. A worker in Dublin1 opens some cases of these products in the warehouse and finds that they are also broken. You must implement processes to enforce inventory inspection for a percentage of each purchase order line received. You must block all inventory for a purchase order line if the inspection fails.
You need to configure the system to identify the complaints for the chalk and blackboard items.
Which two settings should you configure? Each answer presents part of the solution.
NOTE: Each correct selection is worth one point.

A. Quarantine zone

B. Item sampling

C. Quality orders

D. Inventory status

A company uses Dynamics 365 Supply Chain Management.
The finance department processes royalty claims using the accounts payable module.
You need to pass the claims to the accounts payable group for payment.
Which three events will occur? Each correct answer presents part of the solution.
NOTE: Each correct selection is worth one point.

A. A Royalty accrual journal posting reverses the previous interim postings for accrual and expense amounts.

B. A credit is posted to the vendor’s payable account.

C. A vendor invoice for the royalty payment is set to draft.

D. A new vendor invoice for the royalty is created and posted.

E. A hold is put on the amounts held in the royalty fees account.

DRAG DROP -
A company opens a new warehouse facility.
You need to receive items on a transfer order by using an arrival overview.
In which order should you perform the actions? To answer, move all actions from the list of actions to the answer area and arrange them in the correct order.
Select and Place:
 

HOTSPOT -
You need to configure automatic warehouse inventory replenishment for items.
How should you complete the setup? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.
Hot Area:
 

Case study -
This is a case study. Case studies are not timed separately. You can use as much exam time as you would like to complete each case. However, there may be additional case studies and sections on this exam. You must manage your time to ensure that you are able to complete all questions included on this exam in the time provided.
To answer the questions included in a case study, you will need to reference information that is provided in the case study. Case studies might contain exhibits and other resources that provide more information about the scenario that is described in the case study. Each question is independent of the other questions in this case study.
At the end of this case study, a review screen will appear. This screen allows you to review your answers and to make changes before you move to the next section of the exam. After you begin a new section, you cannot return to this section.
To start the case study -
To display the first question in this case study, click the Next button. Use the buttons in the left pane to explore the content of the case study before you answer the questions. Clicking these buttons displays information such as business requirements, existing environment, and problem statements. If the case study has an All Information tab, note that the information displayed is identical to the information displayed on the subsequent tabs. When you are ready to answer a question, click the Question button to return to the question.
Background -
School of Fine Art is a distribution company that sells school supply items to primary and secondary schools. These include items such as pens, pencils, paper, notebooks, chalk, desks, acrylic paints, blackboards, dry erase markers, and whiteboard paint. Due to increased demand for colored pencils, lead times are longer for these pencils. School of Fine Art plans to expand sales into this market.
School of Fine Art plans to implement Dynamics 365 Supply Chain Management to manage the business.
Current environment. Company structure
School of Fine Art consists of two legal entities.
Primary company -
• Located in Dublin, Ireland.
• Has a single named warehouse.
• Is the primary distribution center for both companies.
Second company -
• Is located in Glasgow, Scotland.
• Includes the following warehouses: Glasgow1, Glasgow2.
○ Glasgow1 is used primarily to supply items regionally.
○ Glasgow2 serves as local storage for vendor-owned inventory and bulk storage for School of Fine Art's inventory.
Current environment. General processes
School of Fine Art uses a combination of spreadsheets and paper forms to manage the business.
• All sales, purchases, and inventory are tracked in spreadsheets that are password protected by managers.
• Managers frequently share spreadsheet passwords so that other users can make edits on their behalf. Inventory quantities and values are unreliable.
• The spreadsheets are often incorrectly updated, have entry errors, and broken formulas for calculations.
• Purchase order receipts, picking lists, packing slips, and invoices are all handwritten on pre-printed, three-part forms.
• Late summer is the company's busiest time. During this time, workers are typically on the warehouse floor or making rush deliveries to schools to meet last-minute needs.
Current environment. Inventory and warehousing
• School of Fine Art values inventory by using FIFO costing methods.
• Inventory in the warehouses cannot be distinguished as available inventory or inventory that is sold to a customer and waiting to be picked. This creates inventory inflation during cycle counts and later shortages because warehouse workers count items that are already promised to customers and waiting to be shipped.
• Glasgow2 space is fully allocated to vendors.
• Due to space constraints, school orders for photocopiers are shipped from the vendor to the school.
• Crayons are stored as separate item numbers depending on whether they are in a box or a case. This creates issues when counting inventory to determine the total number of crayons in stock.
• Lack of inventory controls has led to shortages on sales orders, creating backorders and unhappy schools.
• Inventory is ordered quarterly due to the seasonality of the business.
• Items can change annually based on popular sizes, colors, and styles for each new school season. The creation of the different configurations is a manual process, which creates so much overhead that temporary workers are brought in to do the data entry.
Current environment. Purchasing -
• Reordering is manually managed by the buyers looking at the seasonal spikes for the start of the school year, slowing around the end-of-year holidays until the following school year.
• Pens are readily available products that are rarely discounted for sale.
• Photocopiers are only available for sale on the Glasgow region.
• Photocopy paper and construction paper are ordered by the pallet into Dublin1 and must be broken down into smaller sizes. The pallets are typically broken down and then split between what stays in Dublin1 and what is shipped to Glasgow1.
• Chalk and blackboards are slower sellers, so many vendors do not carry these items. School of Fine Art purchases these products from a single vendor. There are no alternative vendors available.
• School of Fine Art agrees to purchase a new line of smartboards from a vendor. The agreed-upon smartboard purchase prices will have a cost price per 55-inch, 75-inch, or 85-inch smartboard.
• The company purchases pencils for the following warehouses:
○ Glasgow1:
• standard pencils from Vendor A
• colored pencils from Vendor B
○ Dublin1:
• standard pencils from Vendor A
• colored pencils from Vendor A
• As whiteboard paint grows in popularity, so does the demand. This causes supply shortages. Whiteboard paint is ordered six months in advance.
Current environment. Customer sales
• The company contractually agrees to prices for some items with schools prior to the start of each school year.
• Schools may order bulk cases of products and choose to distribute further breakdowns, such as a case of crayons, which are then distributed to classrooms by the box.
• Pens do not require contracts with schools because they are low margin and do not have supply chain shortages.
• Painting supplies such as acrylic paint, canvases, and easels do not require a special contract and are sold at regular list price to all schools.
• Schools that offer painting classes are part of a program that provides special pricing on the painting supplies.
• Chalk and blackboards are ordered less frequently than they were in past years. Schools are choosing to use whiteboard paint, which is a lower cost than ordering and installing the whiteboards.
Requirements. Customers and sales
• The system must have the ability to limit product purchase amounts by a single school to prevent stock shortages for other schools.
• Schools are obligated to purchase the agreed amount for specific items per the school year.
• Customer service must be able to easily enter items for sales orders and identify stock shortages.
• Sales of whiteboard paint must be limited so that one school does not buy all the inventory and force backorders for other schools.
• Schools must agree to the amount of whiteboard paint they will purchase for the whole school year.
Requirements. Inventory costing -
• Inventory must have associated costs except for the vendor storage in Glasgow2.
• The vendor storage must still contain quantities but not include cost in inventory valuations.
• At the end of each month, the costing manager must be able to identify how many items will not be fully settled.
• Annual configuration changes to items must be automatically created where possible.
• The company must be able to track costs for colored pencils and standard pencils separately.
Requirements. Inventory -
• Warehouse workers must be able to use their mobile phones and the mobile app to take calls and create transactions in the warehouse.
• The desks must use a single item number and barcode regardless of year manufactured and the vendor.
• Water-based paints from the vendor must be received in pails.
• Acrylic paint must be managed by batches and expiration dates.
• Pencils must be categorized as colored pencils or standard pencils. The individual colors of each colored pencil (such as red, green, and blue) will not be tracked.
• The creation of unique smartboard items must be kept to a minimum.
Issues -
• WarehouseWorker1 works in Glasgow2. The worker receives a request to ship pallets of paper from the warehouse to Glasgow1 and Dublin1. WarehouseWorker1 must create the shipments in the system to transfer the pallets of paper from Glasgow1 to Dublin1.
• The number of backorders for desks has increased. Customer service representatives struggle to select a desk item number that has inventory on hand. The desks are the same item, but the manufacturer vendor and year differ.
• A school calls customer service to report that its photocopier is broken. The school needs expedited shipment of a replacement.
• A school that is part of the special paint program reports that a sale price on canvas last month was a better price than its paint program price. The school requests a price adjustment.
• A school reports that different shipments of acrylic paints are slightly different in color.
• The sales team decides to have a flash sale on pens for one month only. The person entering the Sales order line should be able to communicate the information to the customer on the Sales order line.
• Schools are reporting that chalk and blackboards are broken upon receipt. A worker in Dublin1 opens some cases of these products in the warehouse and finds that they are also broken. You must implement processes to enforce inventory inspection for a percentage of each purchase order line received. You must block all inventory for a purchase order line if the inspection fails.
You need to provide the information for the costing manager.
What should you do first?

A. Check cost prices.

B. Check for open quantities.

C. Close and adjust cancellation.

D. View close settlements.

HOTSPOT -
A company that has three legal entities is implementing Dynamics 365 Supply Chain Management.
One legal entity supplies the other two legal entities as customers with inventory. Intercompany master planning must be set up and run in the least amount of time.
You need to configure the system to meet the requirements.
What should you configure? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.
Hot Area:
 

A corporation has two subsidiary businesses, set up as separate legal entities. The one business will be purchasing a new item from the other, and has negotiated for a discount for the first six months of the deal.
You are required to make sure that system will apply the discount for the time stipulated.
Which of the following is the type of agreement you should configure?

A. Sale Agreement.

B. Service Agreement.

C. Purchase Agreement.

D. Trade Agreement.

After you answer a question in this section, you will NOT be able to return to it. As a result, these questions will not appear in the review screen.
A company uses Dynamics 365 Supply Chain Management to manage inventory.
Backorders exist on customer sales orders because incorrect data was given on product quantities.
Users need to look up what quantity can be sold and when more product will arrive.
Solution: Physical Available shows what quantity can be sold.
Does the solution meet the goal?

A. Yes

B. No

HOTSPOT
-
A company uses Dynamics 365 Supply Chain Management. The company purchased new forklifts for the warehouse.
The types of forklifts vary based on the purpose within the warehouse. Parts, such as belts and wheels, are not always universal and could be specific to the forklift manufacturer and model. The forklift purchase orders must go through a purchase requisition approval process because they are being purchased from new vendors.
You need to determine where to capture the manufacturer and model information for each forklift.
On which component should you capture the information for each requirement? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.
 

You use Dynamics 365 Supply Chain Management to manage inventory.
Multiple forms are currently required to make insights against inventory supply metrics for an item actionable.
You need to use the supply schedule form to streamline operations.
Which three objects can you use to achieve the goal? Each correct answer presents a complete solution.
NOTE: Each correct selection is worth one point.

A. Transfer orders

B. Safety stock journals

C. Scheduled Kanban

D. Production orders

E. Demand forecast

Case study -
This is a case study. Case studies are not timed separately. You can use as much exam time as you would like to complete each case. However, there may be additional case studies and sections on this exam. You must manage your time to ensure that you are able to complete all questions included on this exam in the time provided.
To answer the questions included in a case study, you will need to reference information that is provided in the case study. Case studies might contain exhibits and other resources that provide more information about the scenario that is described in the case study. Each question is independent of the other questions in this case study.
At the end of this case study, a review screen will appear. This screen allows you to review your answers and to make changes before you move to the next section of the exam. After you begin a new section, you cannot return to this section.
To start the case study -
To display the first question in this case study, click the Next button. Use the buttons in the left pane to explore the content of the case study before you answer the questions. Clicking these buttons displays information such as business requirements, existing environment, and problem statements. If the case study has an All Information tab, note that the information displayed is identical to the information displayed on the subsequent tabs. When you are ready to answer a question, click the Question button to return to the question.
Background -
Trey Research is a multinational manufacturer of health and dietary supplements based in Seattle, Washington. The company is experiencing a rapid expansion not only in its supplements but as a lifestyle brand that also sells apparel. The supplements and apparel businesses operate independently but manufacture and operate in the same legal entity.
Current environment -
Current environment. Technology -
Trey Research is migrating from an outdated, on-premises version of Dynamics AX to Dynamics 365 Supply Chain Management. The company wants to retain a lot of its current data structures and processes but adopt new efficiencies when the benefit is obvious. The company uses a third-party e-commerce site that is custom developed by an internal developer.
Current environment. Items -
Product numbering -
All items are numbered by using a smart numbering format: [Product SKU+Size+Color+Style]. For reporting, items are queried for sales and inventory reports by using the first six digits of the item number or until the first dash is encountered.
• A t-shirt could be 01001-S-Red for item 1001 in a size small with the color red.
• A single energy drink could be 02001-12oz or 02001-20oz for the different sizes that product 02001 is sold in.
Product attributes -
• All clothing shares the same set of product attributes.
• Supplements may share the same Product SKU but can have different attributes for the different size, color, or style variations of the product.
• Product attributes that are unnecessary for an item should be excluded from the item.
Pricing -
• All items always have a default price. This price will not expire.
• An item will have four different prices created for it every month, one for each customer tier, as detailed later in this section. The pricing expires at the end of the month. If no special pricing is created, the default item price will be used.
• The monthly sales price in which the additional price breaks are determined is based on the estimated cost of the manufactured items.
• Customers are categorized into four pricing tiers (A, B, C, and D) based on sales volume over the past 12 months.
• Customers can negotiate special pricing for items in 30-day, 60-day, and 90-day increments. Quantity restrictions may be placed, depending on the item discount and promotion.
• Promotional pricing is not used today. Pricing is restricted to monthly prices and customer-specific contract pricing.
Cost -
Items use a FIFO costing model today in their current Dynamics AX 2009 environment; however, using the FIFO costing method has created problems.
Current environment. Warehouse and inventory
• Warehouse requirements are simplistic. There is only one site. The site has two warehouses.
• Trey Research needs to make sure that any energy drinks and nutritional supplements are manufactured and packaged with the highest standards. Trey Research automatically inspects products when all products are reported as finished. All products are inspected again when the items are picked.
• Energy drinks require independent tests to check for dents in packaging, carbonation levels, and fill level.
• Nutritional supplements require separate tests for packaging, expiration date, product seal, and product labeling.
• Government compliancy and consistency testing are handled outside of the Enterprise Resource Planning (ERP) system.
• Resalable products are placed on one of two racks in the warehouse.
Requirements -
Requirements. Technology -
• Trey Research will integrate all pricing and discount capabilities to its e-commerce website.
Requirements. Items -
• Reporting on products should be streamlined as much as possible.
• The item numbering does not have to equate to the actual item number.
• The future costing methods adopted must be commonly accepted for manufacturers.
• Inventory costing should be done after a full inventory valuation is complete. It should take into consideration the direct materials, direct labor, and overhead that goes into an item.
• Any costing method used needs the ability to track cost records about an item, cost categories, and calculation formulas for indirect costs.
• The profitability for nutritional supplements manufacturing processes needs to be expressed in terms of the cost categories for routing operations and the calculation formulas for manufacturing overheads.
• If a vendor can no longer deliver the raw materials for the energy drinks due to supply chain issues, the costs for using an alternative vendor to source the raw materials should be used to determine the impact on profits.
• Apparel items will not be upgraded to the new costing method until after the go-live date due to resourcing and implementation limitations from the apparel team.
Requirements. Pricing -
• Trey Research plans to do promotional pricing. Certain products will receive special pricing during the hours of extreme sporting events that Trey Research sponsors. Before or after the event, normal pricing will resume.
Requirements. White labeling -
• Trey Research wants to start white labeling its products under the brands of major nutritional retail store brands. These products would only be sold to specific customers.
• Trey Research will provide and maintain a 'Compare to' price for customers to use to compare the white-labeled products. This Compare to price will also be the default item price for the customer if the customer accidentally lets a contract price expire.
• The configuration of these restrictions must be applied automatically when creating new products for those customers.
Requirements. Warehouse and inventory
• If products in the warehouse must be blocked from transactions for a specific reason, such as a health and safety review, warehouse users should be able to block the products quickly from the ERP system.
• All product quality tests should be processed in a uniform and consistent manner.
• Creation of any quality processes for products inbound to the warehouse, from the production line, or outbound from the warehouse to consumers should be automatically created to facilitate execution.
• Testing requirements:
◦ Requirement 1: 100 percent of all nutritional supplements and 50 percent of all energy drinks must be tested when production orders are completed. After a product is in testing, 100 percent of all tests must be completed.
◦ Requirement 2: 75 percent of all nutritional supplements and energy drinks should be tested against their required tests during an outbound process.
◦ Damaged products must be placed in one of four bins (based on product type) during the inspection process.
◦ You must define quarantine zones to optimize product visibility throughout the testing process.
You need to configure the system for the customer tier B pricing.
What should you do?

A. Configure an item sales control for the item.

B. Enable the customer group in the Activate price/discount form.

C. Assign the product filter code for the item to the customer tier B customer group.

D. Assign the item to the customer tier B price group.

E. Approve and confirm the trade allowance agreement.

DRAG DROP -
You need to configure the system to meet the metric requirement for sales representatives.
How should you configure the system? To answer, drag the appropriate entities to the correct requirements. Each entity may be used once, more than once, or not at all. You may need to drag the split bar between panes or scroll to view content.
NOTE: Each correct selection is worth one point.
Select and Place:
 

HOTSPOT -
You need to configure the replenishment of the bicycle parts.
Which configurations should you use? To answer, select the appropriate option in the answer area.
NOTE: Each correct selection is worth one point.
Hot Area:
 

SIMULATION -
You are a functional consultant for a company named Contoso Entertainment System USA (USMF).
You perform a manual inventory count and discover that item number T0003 has an inventory count of 230 units.
You need to adjust the inventory to reflect the manual count.
To complete this task, sign in to Dynamics 365 portal.

DRAG DROP -
A company implements Dynamics 365 Supply Chain Management.
The company needs to improve the reliability of their forecasting data.
You need to implement demand forecasting to meet the requirements.
What should you do? To answer, drag the appropriate actions to the correct requirements. Each action may be used once, more than once, or not at all. You may need to drag the split bar between panes or scroll to view content.
NOTE: Each correct selection is worth one point.
Select and Place: