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.
You are the purchasing manager at a manufacturing company that makes audio equipment.
You sign an agreement with a vendor to purchase 5,000 speaker cables, item C0001, at a discounted rate of $3.00 per cable. This agreement expires in exactly one year.
You need to set up pricing information and track the fulfillment of the agreement.
Solution: Create a purchase agreement for the vendor that specifies a product quantity commitment. Include the quantity, the price, and the expiration date.
Does the solution meet the goal?

A. Yes

B. No

You work for a distribution warehouse that makes use of a Dynamics 365 Supply Chain Management system.
After taking in a sizable quantity of stock that has a limited shelf life, you are required to distribute the stock to retail outlets at the earliest opportunity.
You plan to make use of Buyer's push.
Which of the following is the option you should take?

A. You should generate a sales order.

B. You should generate transfer orders.

C. You should generate service agreements.

D. You should generate trade agreements.

A company uses the warehouse mobile app for Dynamics 365 Supply Chain Management.
You must create a menu item for reprinting license plate labels. Reprinting a license plate label must not create warehouse work.
You need to configure the warehouse mobile app to add the new menu item.
What should you do?

A. Set the Mode to Work

B. Set the Mode to Indirect

C. Set the Activity code to Cancel work

D. Set the Activity code to None

DRAG DROP -
You manage a Dynamics 365 Supply Chain Management system for a company.
You need to configure agreements in the system.
Which agreement types should you use? To answer, drag the appropriate agreement types to the appropriate scenarios. Each agreement 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.
Select and Place:
 

A company uses Dynamics 365 Supply Chain Management.
The company is consistently short on inventory for a group of produced finished good items. This creates customer service issues.
You need to ensure that production orders are automatically created when inventory is low.
Which two actions should you perform? Each answer represents a partial solution.
NOTE: Each correct selection is worth one point.

A. Update the item maximum.

B. Update the item minimum.

C. Set Capable to Promise.

D. Create a safety stock journal.

E. Create a transfer journal.

A company uses Dynamics 365 Supply Chain Management. The company acquired a multinational food packaging business that has 30 facilities operating in multiple countries/regions.
Packaging machines must be systematically registered and tracked across all facilities.
You need to create the packing machine assets to meet the tracking requirements.
What should you create?

A. functional location type

B. functional location lifecycle state

C. functional location

D. functional location lifecycle model

You make use of planning optimization in Dynamics 365 Supply Chain Management, with automatic firming enabled.
As a result of certain planned purchase orders not firming according to plan, inventory planners have to process planned purchase orders manually.
You want to make sure that the planned purchase orders are incorporated in automatic firming.
You configure the Lead Time.
Does the action achieve your objective?

A. Yes, it does

B. No, it does not

You work for a distribution company that makes use of a Dynamics 365 Supply Chain Management system.
You are responsible for planning. When you notice that planned orders for a specific item is increasing, you plan to track the source of the planned orders and release them according to their demand.
You want to make sure that a unique planned purchase order is created by the master planning batch job for each new demand requirement for the item.
You configure the use of the Min/Max coverage code lot-sizing method.
Does the action achieve your objective?

A. Yes, it does

B. No, it does not

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:
 

You are the customer relations manager at a wholesale company.
You perform promotion planning and must track fund usage.
You need to set up a trade allowance agreement to register and track promotion contracts.
Which two items should you set up prior to creating the agreement? Each correct answer presents part of the solution.
NOTE: Each correct selection is worth one point.

A. Sales category hierarchy

B. Opportunity reasons

C. Customer category hierarchy

D. Trade allowance funds

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:
 

HOTSPOT -
A company needs to stock inventory in their warehouse. Inbound purchase order materials may need to be placed into more than one location in the warehouse.
You need to configure placement for inventory in the warehouse.
How should you set up location directives? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.
Hot Area:
 

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:
 

A company operates a chain of retail coffee shops and a distribution center. Each coffee shop and the distribution center are distinct warehouses.
Cups and lids are replenished from a single distribution center.
You need to configure store replenishment for coffee cup lids.
Which three actions should you perform? Each correct answer presents part of the solution.
NOTE: Each correct selection is worth one point.

A. Set the coverage plan by dimension for warehouse on the Storage dimension group.

B. Set the minimum item coverage to the safety stock quantity. Set the maximum to the maximum quantity of stock to reorder above the safety stock quantity.

C. Set the minimum item coverage to the safety stock quantity. Set the maximum item coverage to 0.

D. Create a coverage group assignment for the item.

E. Set the minimum item coverage to 0. Set the maximum item coverage to the number of lids to keep on hand.

HOTSPOT -
A company is implementing purchase requisition features in Dynamics 365 Supply Chain Management.
You need to configure the appropriate purchase requisition solutions.
Which solution should you use for each scenario? 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 to sell automobile tires.
The company sells different models of tires. Each model is available in different diameter sizes. The combination of a model and its diameter represents an individual stock keeping unit (SKU).
The manufacturer’s suggested retail price (MSRP) and purchase prices can vary between variants. The purchase price for the variants will change over time, but the MSRP will never change once it is configured. All price changes must be documented systematically. The MSRP must be the default selling price for the item if no other pricing is available.
You need to configure the prices for the tires.
Which configurations should you use? 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.
 

You need to configure the system to support the pottery line.
What should you do first?

A. Set up a new product with product configuration.

B. Create a new product with tracking dimensions.

C. Create a new product master with pre-defined product variants.

D. Create a new product with storage dimensions.

Your company uses a Dynamics 365 Supply Chain Management system.
You have been tasked with configuring an agreement that gives clients a specified discount per unit if they buy a certain amount of a particular item.
The parameters are as follows:
✑ 51 to 100 `" 10 %/unit
✑ 101 and more `" 15 %/unit
You configure a purchase agreement.
Does the action achieve your objective?

A. Yes, it does

B. No, it does not

You need to enable the automatic firming of planned orders from the master planning solution.
Where do you enable the functionality?

A. Lifecycle Services

B. Master planning parameters

C. Feature management workspace

D. On the released item

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.

A company is implementing sales order functionality in Dynamics 365 Supply Chain Management.
The company has a business requirement to fulfill sales orders by using direct delivery.
You need to enter a direct delivery sales order so that a purchase order is automatically created.
What should you do after you enter the sales order and lines?

A. Change the order type to journal and manually enter a PO for the sales order line items on the sales order header.

B. Change the delivery type on the sales order line to direct delivery and select save.

C. Select automatic and confirm the sales order on the line level setup tab in the reservation field.

D. Change the customer’s address to the vendor’s direct delivery address and confirm the sales order.

A company uses Dynamics 365 Supply Chain Management.
Sales of an item doubles during the holiday season. You plan to revise the minimum coverage proposal of the item.
You need to update the item's new minimum quantity in safety stock journal lines.
What are two possible ways to achieve this goal? Each correct answer presents a complete solution.
NOTE: Each correct selection is worth one point.

A. Update the Multiplication factor field. Calculate the minimum proposal for the inventory level.

B. Update the New minimum quantity value to match the value in the Calculated minimum quantity field.

C. Select the Service level. Calculate the minimum proposal for the inventory level.

D. Select the Use the calculated minimum quantity as the new minimum quantity parameter option. Calculate the minimum proposal for the inventory level.

A company uses Dynamics 365 Supply Chain Management to manage inventory.
The company realizes that there is an incorrect inventory amount for Item 33442 in Warehouse 1.
You need to correct the inventory amount by using the posting setup configured on the item group.
Which two journal types achieve the goal? Each correct selection provides a complete solution.
NOTE: Each correct selection is worth one point.

A. Inventory adjustment journal

B. Inventory transfer journal

C. Inventory movement journal

D. Inventory counting journal

Your company uses a Dynamics 365 Supply Chain Management system.
You have been tasked with configuring an agreement that gives clients a specified discount per unit if they buy a certain amount of a particular item.
The parameters are as follows:
✑ 51 to 100 `" 10 %/unit
✑ 101 and more `" 15 %/unit
You configure a sales agreement.
Does the action achieve your objective?

A. Yes, it does

B. No, it does not

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:
 

You identify a new vendor.
You must create a purchase agreement for the vendor that includes direct invoicing and insurance.
You need to a create a classification for the purchase agreement.
What should you do?

A. Set the value for Certification to Yes. Set the value for Requires direct invoicing to No.

B. Set the value for Certification to No. Set the value for Requires direct invoicing to No.

C. Set the value for Certification to Yes. Set the value for Requires direct invoicing to Yes.

D. Set the value for Certification to No. Set the value for Requires direct invoicing to Yes.

HOTSPOT
-
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 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.
 

You need to track application access assignments by using Identity Governance. The solution must meet the delegation requirements.
What should you do first?

A. Modify the User consent settings for the enterprise applications.

B. Create a catalog.

C. Create a program.

D. Modify the Admin consent requests settings for the enterprise applications.

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.

Employee1 needs to set up the new items for the product line.
Which two actions should Employee1 perform? Each correct answer presents part of the solution.
NOTE: Each correct selection is worth one point.

A. Create new finished goods and release to the legal entity. Raw material products are not required for these items.

B. Create new finished goods with predefined variants and release to the legal entity.

C. Create new raw materials with variants and release to the legal entity.

D. Create new raw materials and release to the legal entity.

E. Create new finished goods and release to the legal entity.

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:
 

You need to address the inventory costing requirements.
What are two possible ways to achieve the goal? Each answer represents a complete solution.
NOTE: Each correct selection is worth one point.

A. Use FIFO with marking.

B. Create purchase orders from sales orders.

C. Set up commodity pricing.

D. Create a costing version.

E. Set up a costing sheet.

You have been tasked with configuring inventory cycle counting for a client that makes use of Dynamics 365 Supply Chain Management.
You need to make of a cycle counting method that allows a worker to count items in a warehouse location at any time, without creating cycle counting work.
Which of the following is the option you should use?

A. User directed

B. Cycle count grouping

C. System directed

D. Spot cycle counting

You are setting up Dynamics 365 Supply Chain Management for a client.
The client plans to add several items to the Dynamics 365 Supply Chain Management system.
You are required to ensure that the client can configure the items as either company owned or consignment when the client creates the items.
Which two of the following actions should you take?
NOTE: Each correct answer is worth one point.

A. You should enable batch dimension.

B. You should enable owner dimension.

C. You should allocate a moving average costing inventory model.

D. You should allocate a standard costing inventory model.

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:
 

Your company uses a Dynamics 365 Supply Chain Management system.
You have been tasked with configuring an agreement that gives clients a specified discount per unit if they buy a certain amount of a particular item.
The parameters are as follows:
✑ 51 to 100 `" 10 %/unit
✑ 101 and more `" 15 %/unit
You configure a trade agreement.
Does the action achieve your objective?

A. Yes, it does

B. No, it does not

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.
You are the purchasing manager at a manufacturing company that makes audio equipment.
You sign an agreement with a vendor to purchase 5,000 speaker cables, item C0001, at a discounted rate of $3.00 per cable. This agreement expires in exactly one year.
You need to set up pricing information and track the fulfillment of the agreement.
Solution: On the released product, set a price of $3.00. Add the vendor to the vendor account field on the Purchase fast tab.
Does the solution meet the goal?

A. Yes

B. No

DRAG DROP -
You are implementing Dynamics 365 Supply Chain Management.
A user reports that some of the quarantine statuses appear to mean the same thing.
You need to explain the status of quarantine orders by the location of the item.
What is the status of the orders based on the location of the item? To answer, drag the appropriate statuses to the correct steps. Each status 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:
 

You need to identify the cause for the inventory issue reported by customer service representatives.
What is the root cause?

A. Run inventory close process.

B. Ordered reserved box should be checked, this will disable quantities.

C. Turn on automatic reservation.

D. Ordered reserved quantity is due to marking.

E. Turn off automatic reservation.

A company uses planning optimization in Dynamics 365 Supply Chain Management.
A planning optimization job is triggered by mistake from the user interface. The planning optimization job is running with incorrect runtime filters.
You need to resolve the issue.
What should you do?

A. Cancel the job from the plan history.

B. Cancel the job from the dialog box.

C. Disable the environment add-in.

D. Cancel the planning optimization fit analysis.

HOTSPOT -
You need to resolve the issue for UserB?
Which options should you use? To answer, select the appropriate options in the area.
NOTE: Each correct selection is worth one point.
Hot Area:
 

HOTSPOT -
A company sells licensed products.
You must pay the licensor royalties for the items each month.
You need to set up a royalty agreement to pay the licensor.
How should you set up the royalty agreement? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.
Hot Area:
 

A company with two legal entities uses Dynamics 365 Supply Chain Management. You are creating new products and learn that CompanyA plans to use Warehouse management (WMS) but CompanyB will not.
Each storage, tracking, and production dimension name and configuration must be identical in each company.
You need to set up the dimensions that affect the WMS for the new products.
Which two actions should you perform? Each correct answer presents a complete solution.
NOTE: Each correct selection is worth one point.

A. Assign a tracking group to the product and release it to both companies, changing one tracking group after release.

B. Leave storage group blank on the product and assign after release to both companies.

C. Assign storage group to the product and release to both companies, changing one after release.

D. Create a product master and assign configuration technology.

You need to complete the shipments.
What should you do?

A. Confirm the load and generate packing slips and bills of lading.

B. Confirm shipments, generate shipping documents, and send an ASN.

C. Confirm shipments and generate pick/put work.

D. Confirm the load, generate picking lists, and send an ASN.

You need to configure the limited-edition bicycle to meet the requirement for the official release date.
Where should you configure this?

A. Released product

B. Sales price trade agreement

C. Product lifecycle state

D. Default order settings

A company uses Dynamics 365 Supply Chain Management.
An employee notices a discrepancy in inventory.
You need to create the inventory blocking transaction.
What are two possible ways to achieve the goal? Each correct answer presents a complete solution.
NOTE: Each correct selection is worth one point.

A. inventory status

B. quality order

C. batch disposition code

D. manual inventory blocking

HOTSPOT -
A company sells a new product line. Buyers purchase a large shipment into the distribution center.
The product must be divided among the retail stores equally.
You need to configure buyer push functionality.
Which configuration options should you use? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.
Hot Area:
 

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:
 

You need to segregate inventory for the brakes that are in inventory.
Which two actions should you perform? Each correct answer presents part of the solution.
NOTE: Each correct selection is worth one point.

A. Assign a blocked status to the inbound purchase order from VendorA.

B. Create a disposition code.

C. Set default inventory status on the item.

D. Assign an item filter code.

E. Assign a blocked status to the inbound purchase order from VendorB.

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