MB-330 : Microsoft Dynamics 365 Supply Chain Management : Part 04

MB-330 : Microsoft Dynamics 365 Supply Chain Management : Part 04

1. Note: This question is part of a series of questions that present the same scenario. Each question in the series contains a unique solution that might meet the stated goals. Some question sets might have more than one correct solution, while others might not have a correct solution.

   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 is implementing inventory management in Dynamics 365 Supply Chain Management.

   The company needs to block inventory and ensure that physical inventory will not be reserved by other outbound transactions.

   You need to select the appropriate option to block the inventory in the system.

   Solution: Configure a blocking cause in the inventory setup configuration.

   Does the solution meet the goal?

   • Yes
   • No

2. DRAG DROP

   A company uses Dynamics 365 Supply Chain Management.

   You need to perform month-end close processes.

   At which process steps should you perform the actions? To answer, drag the appropriate process steps to the appropriate actions. Each process step 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.

   

   

3. 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.

   • inventory status
   • quality order
   • batch disposition code
   • manual inventory blocking

4. A company uses Dynamics 365 Supply Chain Management.

   Orders are reserved against open purchase orders that have not yet been received. As a result, there are issues prioritizing deliveries, which is causing backorders on both sales orders and transfer orders.

   Negative inventory is not currently allowed.

   Product reservations must be performed against physical stock only.

   You need to update the configuration for product reservations.

   What should you do?

   • Clear the Reserve Items Automatically check box for transfers.
   • Clear the Reserve Ordered Items check box.
   • Select the Auto batch reservations check box.
   • Select the Physical negative inventory check box.

5. 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.

   • Define highest, middle, and lowest ABC values as percentages
   • Define highest, middle, and lowest ABC values as amounts
   • Select ABC model of revenue
   • Define internal interest in percentage
   • Select ABC model of value

6. HOTSPOT

   All items that a company purchases from a specific vendor arrive with defects.

   You need to automatically generate quality orders for all items when the products are physically received from the vendor, and product receipts are issued.

   How should you configure the quality association? To answer, select the appropriate options in the answer area.

   NOTE: Each correct selection is worth one point.

   

   

7. A company plans to run their profit and loss statements by using the site storage dimension.

   If the site is changed on sales order, purchase order, or other source document, a mismatch is created between financial and storage dimensions. This leads to incorrect profit and loss reporting.

   You need to ensure that the financial dimension updates when the site storage dimension changes.

   Which three actions should you perform? Each correct answer presents part of the solution.

   NOTE: Each correct selection is worth one point.

   • Lock the dimension link.
   • Associate the financial dimension hierarchy with the storage dimension hierarchy in the organization chart.
   • On the storage dimension site setup screen, select Default inventory status ID.
   • Associate the site storage dimension with the site financial dimension.
   • Activate the dimension link.

8. A company uses Dynamics 365 Supply Chain Management.

   Products must automatically be classified based on the company’s objectives and priorities.

   You need to create the ABC model.

   Which three ABC codes should you configure? Each correct answer presents part of the solution.

   NOTE: Each correct selection is worth one point.

   • Margin
   • Cost
   • Revenue
   • Profit
   • Value
9. 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

   Best for You Organics Company started as a home-based business. The founders began making handmade soaps and bath products in their kitchen. As sales increased, the business established a production facility and distribution center that supplies three retail stores.

   Soaps and bath products are manufactured in the production facility and are stocked in the warehouse for distribution to the retail stores. Employees at retail stores use mobile point of sale (MPOS) tablet devices to sell the products to customers.

   The company structure is a single legal entity with two sites as shown in the diagram below:

   

   Current environment

   Best for You Organics plans to introduce a new product line of face creams. Each product in the new line uses the same base ingredients but includes a different extract (for example, lime, avocado, kiwi). The marketing department is preparing to introduce the new product line. Minimal inventory will be held in the warehouse.

   The company uses a cloud-based deployment of Dynamics 365 Supply Chain Management to manage finances for all company operations and locations. The company does not use Bill of Materials (BOM) versioning.

   The production and warehouse facility is set up with the following organizational hierarchy:

   

   External customers include:

   Customer A: a walk-in store customer (business-to-consumer)
   Customer B: a customer with an existing account (business-to-business)

   External vendors include:

   Vendor A: a trucking company
   Vendor B: a raw materials supplier

   Requirements. General

   The new product line must be set up in the system and readily available for sale when the company introduces the product line to the public at an upcoming trade show.

   Requirements. Production

   You must configure the system to produce the new products:

   – Ensure that the warehouse stocks the minimum quantities of raw materials to produce the products.
   – Use a single version per item.
   – Implement FIFO inventory valuation methods.
   – Track raw and finished goods using different General ledger accounts.
   – Use a primary location to determine where to stock product in the warehouse.
   – Configure alternate locations in the warehouse to hold overstock products and refill the primary location as-needed.

   Requirements. Shipments

   You identify the following requirements related to shipping:

   – Ship product to retail stores weekly.
   – Stores require a packing slip to check in merchandise. Drivers require transport documentation and charge per mile to the stores.
   – Shipments to Store1 must be scheduled for Monday, Wednesday, or Friday. Store1 will sometimes pick up their own deliveries when an order is small because they have their own van. Shipments to Store2 and Store3 must be scheduled for Tuesday or Thursday.
   – You must transmit Advance Shipping Notifications (ASN’s) to the stores prior to deliveries.
   – Set up the system configuration to allow for store transfers.
   – Set up the system so that products may be shipped to the retail stores as bulk orders.
   – Set up the transport providers to deliver products from the warehouse to the retails stores.

   Requirements. Reporting

   Once the new products are available in stores, review 30 days of historical sales data from day-to-day transactions will determine the reorder quantities.

   Set up reporting to allow the product line to be costed and tracked independent of other items.

   Requirements. Pricing and inventory

   You identify the following requirements related to pricing and inventory:

   – Determine the quantity of the new products that can be produced and ready for sale within the first 90 days. Ensure that specialty packaging is on hand for retail sales. The packaging must be shipped directly to the stores from the vendor.
   – Stores must not inventory the packaging materials. Stores must maintain a 30-day supply of specialty packaging materials. Stores must reorder packaging materials as needed.
   – Retail store customers must pay full retail price. Resellers must receive a 10 percent discount off the list price.

   1. You need to configure inventory levels for the retail stores.

      Which two actions should you perform? Each correct answer presents part of the solution.

      NOTE: Each correct selection is worth one point.

      • Enter a manual forecast for the initial stock levels at the retail stores.
      • After the first month of face mask sales, look at the warehouse sales orders for the past 30 days to generate a demand forecast.
      • After the first month of face mask sales, review store sales for the past 30 days to generate a demand forecast.
      • After the first month of face mask sales, create a forecast for the warehouse and a second forecast for the retail stores.
      • After the first month of face mask sales, create a manual forecast for the warehouse and automatically generate a demand forecast for the stores.
10. 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

    Wide World Importers is a distribution company whose primary customers are small boutique shops which sell globally-sourced products including unique or hand-crafted items such as perfumes and ceramicware. Through the Wide World Importers sales cycle, the commission-based sales team identifies opportunities and negotiates with shops by using a quoting process. The products may or may not already exist in the company’s current product list.

    The company has the following divisions and areas of responsibility:

    

    Current environment

    Wide World Importers use Dynamics 365 Finance and Dynamics 365 Supply Chain Management. There is a single legal entity.

    The primary distribution center for the company is located in Las Vegas, Nevada, USA. There is an additional warehouse in California which receives imported goods from container ships. When goods are received in California, the goods are transferred to Nevada for distribution. No orders are shipped directly from California.

    Requirements. Sales

    The company has two teams of sales representatives: East and West. Each team has one representative for each of the following categories of goods: perfumes, ceramicware, and all other goods. Sales representatives are paid commissions based on sales. Commissions must be paid based on the home office location for customers. For example, commission for a customer that is headquartered in the Western United States is paid to the West group of sales representatives.

    Sales representatives are responsible for driving new business. Company executives must be able to see metrics that define the companies that the sales representatives are targeting, where there is potential to do business, and where quotes are being generated. Customer records must not be created until a sale is confirmed.

    The sales team quoted a new perfume for a customer named Customer1. The customer has shipping locations in the following regions: United States, Austria, and Japan. Sales must only be made to the US and Japan due to product ingredients. Automated checks must be put into place so that users do not have to remember to select the correct item.

    Requirements. Testing

    The company periodically performs testing on ceramicware as it is received to determine whether the products contain lead. The company labels and markets ceramicware as Lead Free or Not for food use. Perfumes may contain restricted ingredients that cannot be sold to customers in the European Union. The company performs testing on perfumes and has processes to ensure that perfumes containing restricted ingredients are not sold to customers in Europe.

    Ten percent of all ceramicware items received must be tested for lead. The process for managing testing must be automated. There must be tolerances setup that define the acceptable amount of lead levels in a product.

    Requirements. Inventory management

    The inventory team must control costing of items by using FIFO principles. The finance team must be able to see updated FIFO adjustments throughout the month but will only settle FIFO for month-end reporting.

    Inventory close must be run at the end of each month. A report must be provided to the finance team that includes the physical quantities and inventory value for items, with totals at the bottom. The warehouse team needs a similar report but does not want the inventory value included. During inventory close, some items cannot be fully costed because the issue cannot be settled against the receipt. The finance team must know which items were excluded.

    Other inventory requirements

    – Inventory must be reserved against physical inventory.
    – Items must be grouped so that the inventory costing can posted to the ledger by using the following groups: perfumes, ceramicware, other goods. All goods are FIFO. Financial reports must be grouped by these three categories, even though transactions from all categories post to the same ledger accounts.
    – Wide World Importers plans to import a specific type of pottery from a local company in Mexico that handmakes the goods. The pottery must be available in orange or red colors. The cost is the same regardless of the color selection.
    – A new line of perfumes is being introduced. The procurement team must be able to identify which perfumes are men’s or women’s fragrances, and must be able to further categorize perfumes as Perfume, Eau de Perfume, Eau de Toilette, Eau de Cologne, or Eau Fraiche.
    – You must set up a structure of products for classifying each item for purchase, sales, and reporting analysis.

    Issue

    Customer service representatives report that some inventory shows as ordered reserved when the ordered reserved parameter is turned off.

    An item that is typically carried is out of stock. A customer named Customer2 wants to place a special rush order for the item. This will result in a significantly increased cost from the supplier. The finance team does not want to have this special order affect the FIFO tiers.

    1. DRAG DROP

       You need to configure the system to meet the inventory team cost control requirement.

       Which processes should you run? To answer, drag the appropriate processes to the correct requirements. Each process 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.

       

       

    2. HOTSPOT

       You need to configure the inventory reports.

       Which configuration settings should you use? To answer, select the appropriate options in the answer area.

       NOTE: Each correct selection is worth one point.

       

       

    3. HOTSPOT

       You need to configure settlement reports for the finance team.

       Which processes should you use? To answer, select the appropriate options in the answer area.

       NOTE: Each correct selection is worth one point.

       

       

    4. You need to identify the cause for the inventory issue reported by customer service representatives.

       What is the root cause?

       • Run inventory close process.
       • Ordered reserved box should be checked, this will disable quantities.
       • Turn on automatic reservation.
       • Ordered reserved quantity is due to marking.
       • Turn off automatic reservation.

    5. 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.

       

       

11. 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

    Adventure Works Cycles builds stock and custom mountain bikes and is headquartered in San Diego. It has the following assembly and warehouse locations:

    – Denver, Colorado, United States
    – San Diego, California, United States
    – Budapest, Hungary

    Most manufacturing is outsourced, with each facility only assembling the bikes. Parts are stocked at all facilities and may be transferred between warehouses or legal entities. All of the parts are at standard cost.

    Current environment. Organizational structure

    The following diagram shows the structure of Adventure Works Cycles.

    – Each of the physical locations in the United States (US) is a warehouse.
    – Hungary assembles and distributes products to the rest of the European Union (EU).
    – The EU legal entity is expected to add additional warehouse locations.
    – All legal entities roll up to a financial consolidation company.

    

    Current environment. Purchasing

    – Higher quality tires that are used in new orders have become popular. Due to the volume of orders, the company wants to negotiate pricing with Vendor C. The vendor agrees to a discounted price for 500 tires purchased within the next six months. Once the 500 tires have been purchased, the discount will be re-evaluated based on demand.
    – Once a purchase is approved, for audit purposes it cannot be changed.
    – Whenever possible, parts are purchased from vendors also within the EU. A purchase order was placed for a bike seat manufacturer in Italy.
    – Parts for custom orders may not always be kept in stock and will need to be procured.

    Current environment. Purchase requisitions

    The following flow chart depicts the purchase requisition process:

    

    Requirements. Purchasing

    – Items for purchase requisitions are governed by each country. Each of the country-specific products will be grouped together for selection.
    – Purchase orders must follow the requisition process.
    – All existing purchase orders for brakes must account for the change to Vendor B.

    Requirements. Inventory

    – Standard costs are based on purchase fluctuations within a single month.
    – Tires use floating zones due to limited warehouse space.

    Requirements. Operations

    Due to recent brake failures, Adventure Works Cycles plans to purchase brakes from Vendor B instead of Vendor A. Although the brakes from Vendor B will continue to use the same item number as the brakes from Vendor A, the price is slightly higher from Vendor B. Adventure Works Cycles will pay list price from Vendor B. The order for Vendor B needs approval and the usual approver for purchase requisitions is on vacation.

    All brakes from Vendor A that are in stock must be tested. The process for brake testing must be implemented for all inbound orders. Quality orders must be automatically created upon receipt of the first shipment against a purchase order only. Inventory stocking locations must be consolidated after the brakes are tested.

    User C needs to consolidate brake inventory after it has been cleared for sale.

    Ordering of the new brakes order will incur an additional cost because it is a rush order.

    Requirements. Custom orders

    – Custom orders are placed for items that do not exist in the item master.
    – Hungary does not process custom orders.
    – The United States does process custom paint orders. Most custom paint colors are special order and require purchase requisitions.
    – Quotes must be obtained from a minimum of two suppliers per company policy and compared for the shipping, costs, and other variables. Quotes will not be selected based on lowest price only.

    Issues

    – A special order for 2.6 high-end tires is received. This item is no longer in stock from the current vendor.
    – Goods have been received in stock, but the matching invoice has not yet been received at the time of month close.
    – User A needs to set up pricing for the items purchased from Vendor C and ensure that accounting validates the receipt and invoice against the agreement.
    – User B needs to send out a request for quotation (RFQ) for custom paint. The vendor will be selected based on pricing, volume discounts, and lead time.

    1. 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.

       • Assign a blocked status to the inbound purchase order from Vendor A.
       • Create a disposition code.
       • Set default inventory status on the item.
       • Assign an item filter code.
       • Assign a blocked status to the inbound purchase order from Vendor B.

    2. You need to set up testing for brakes to meet the operations requirements.

       Which two actions should you perform? Each correct answer presents part of the solution.

       NOTE: Each correct selection is worth one point.

       • Set execution to after product receipt.
       • Set per updated quantity to yes.
       • Set execution to before product receipt.
       • Set per updated quantity to no.

    3. You need to test the existing brakes in inventory.

       What are two possible ways to achieve this goal? Each correct answer presents a complete solution.

       NOTE: Each correct selection is worth one point.

       • Assign a Phantom bill of materials (BOM) line.
       • Create a manual quality order for existing inventory.
       • Assign brakes to an inventory status that is blocked.
       • Create an automatic quality order for existing inventory.

    4. You need to resolve the issue for User C.

       What should you do?

       • Change the inventory status only.
       • Change the inventory status and run the replenishment process.
       • Change the inventory status and complete a movement journal.
       • Create a transfer order and change the inventory status.

12. Note: This question is part of a series of questions that present the same scenario. Each question in the series contains a unique solution that might meet the stated goals. Some question sets might have more than one correct solution, while others might not have a correct solution.

    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 plans to simplify interactions between purchasing department employees and vendors.

    You need to ensure that employees are redirected to a vendor’s online store to select items for inclusion on purchase requisitions.

    Solution: Create a vendor catalog.

    Does the solution meet the goal?

    • Yes
    • No

13. 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 Royalty accrual journal posting reverses the previous interim postings for accrual and expense amounts.
    • A credit is posted to the vendor’s payable account.
    • A vendor invoice for the royalty payment is set to draft.
    • A new vendor invoice for the royalty is created and posted.
    • A hold is put on the amounts held in the royalty fees account.

14. Note: This question is part of a series of questions that present the same scenario. Each question in the series contains a unique solution that might meet the stated goals. Some question sets might have more than one correct solution, while others might not have a correct solution.

    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 has an agreement to pay royalties to a third party for use of their logo.

    A royalty contract must be setup so that the third party paid monthly. The payment is based on invoiced sales.

    You need to create a royalty contract and create monthly Accounts payable to the third party.

    Solution: Use the automatically calculated royalty amounts to approve and then create a monthly claim to pay the vendor.

    Does the solution meet the goal?

    • Yes
    • No

15. Note: This question is part of a series of questions that present the same scenario. Each question in the series contains a unique solution that might meet the stated goals. Some question sets might have more than one correct solution, while others might not have a correct solution.

    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 has an agreement to pay royalties to a third party for use of their logo.

    A royalty contract must be setup so that the third party paid monthly. The payment is based on invoiced sales.

    You need to create a royalty contract and create monthly Accounts payable to the third party.

    Solution: Add line items to a royalty contract with the associated customer and create sales orders for the items.

    Does the solution meet the goal?

    • Yes
    • No

16. Note: This question is part of a series of questions that present the same scenario. Each question in the series contains a unique solution that might meet the stated goals. Some question sets might have more than one correct solution, while others might not have a correct solution.

    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 has an agreement to pay royalties to a third party for use of their logo.

    A royalty contract must be setup so that the third party paid monthly. The payment is based on invoiced sales.

    You need to create a royalty contract and create monthly Accounts payable to the third party.

    Solution: Create a royalty contract. Select monthly for the cumulative sales. Add line item, products, and value to pay the vendor for use of the logo.

    Does the solution meet the goal?

    • Yes
    • No

17. An organization has two legal entities. One of the companies is going to sell a new product to the other company.

    The company that will receive the product must get a discount on items for the first three months of initial sales.

    You need to configure the system to apply the discount for the specified period.

    What should you do?

    • Set the default purchase price on the company that is receiving the product.
    • Enter the default purchase price on the company that is selling the product.
    • Set up an intercompany purchase agreement. Do not allow the validity period to be edited.
    • Set up a Trade Agreement. Set the To Date field to end in three months.

18. 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.

    

    

19. 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.

    

    

20. DRAG DROP

    You are the purchasing manager for a company. You enter into a consignment agreement with a vendor.

    Raw material R0001 is managed under the consignment agreement with the vendor.

    You need to replenish raw material R0001 for consumption and update ownership.

    Which four 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.