DRAG DROP
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A cosmetics company uses Dynamics 365 Supply Chain Management. You configure a single legal entity.
Items must be created for a new product line of lipsticks. The lipsticks will have similar characteristics and will be sold in two sizes: trial size and full size. The lipsticks will also have colors and product lines assigned to item numbers. Each lipstick must be assigned a unique item number.
Historically, users manually entered items for new product lines and incorrectly and inconsistently set up the associated values.
You need to define the setup for the items and configurations.
What should you configure? 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. Product attributes- Product master Product master- Product attributes Item template- Product attributes Product attributes- Item template.
DRAG DROP
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An energy sustainability company uses Dynamics 365 Supply Chain Management.
The company sells raw materials to contractors working on a pipeline project by using special pricing. The company plans to sell raw materials to non-pipeline contractors; however, those sales will not be eligible for the special pricing, any discounts, or price breaks. The non-pipeline contractor pricing may change over time. The price history must be retained.
You need to configure the system for the pricing requirements.
What should you configure? To answer, drag the appropriate configurations to the correct pricings. 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. price group, affiliations
trade agreement, customer price group, affiliations
trade agreement, all trade agreement, customer
price group, affiliations.
HOTSPOT
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A company uses Dynamics 365 Supply Chain Management. The company has two sites at ports of entry, one in Atlanta and one in San Francisco.
Due to supply chain constraints and cost fluctuations, the company must change from one standard cost for all products to two standard cost structures, one for Atlanta and one for San Francisco. A costing manager for each site will manage and approve the costing. The historical costs must be retained for analytical purposes. Costs are revised annually.
You need to configure the system.
What should you configure? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point. Create new costs for the existing costing version
Enable the Blocked flag
Activate the fallback principle Create new costs for the existing costing version
Enable the Block Activation flag
Activate the fallback principle Create one new costing version
Enable the Block Activation flag
Activate the fallback principle.
DRAG DROP
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A manufacturing company uses Dynamics 365 Supply Chain Management.
The company wants to change inventory valuation to standard costing. Manufactured items must have an active cost breakdown in total but still capture the variance amount on any production substitutions.
You need to define the inventory management parameters.
Which inventory parameter options should you use? To answer, drag the appropriate options to the correct parameters. Each option 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. Sub ledger
Per cost group Sub ledger
No Summarized
Per cost group.
A caulking manufacturer is implementing Dynamics 365 Supply Chain Management. When caulking is produced, it is sold by tubes, 1-gallon cans, 5-gallon buckets, 55-gallon drums, or 330-gallon totes with potential to add other sizes.
The manufacturer wants to ensure that when new units are added, only one conversion is set up that does not require conversions between each unit of measure.
You need to configure the unit of measure to meet the requirement.
What should you use? A. Unit class B. Conversion formula C. Formula layout D. Base unit.
A company uses Dynamics 365 Supply Chain Management in one legal entity that contains one site, which contains Warehouse1 and Warehouse2. A customer routinely orders an item that the company usually stocks in Warehouse1.
The customer requires the company to ship orders from Warehouse2 due to shipping cost agreements.
You need to configure the system to meet the request.
Which configuration should you set up? A. Set the item default order settings to Warehouse1 only. B. Set the customer default to Warehouse1 and set the item default order settings to Warehouse2. C. Set the customer default to Warehouse2 and the item default order settings to Warehouse1. D. Set the customer default to Warehouse1 and set the item default order settings to Warehouse1. E. Set the customer default to Warehouse2 only.
A company is implementing Dynamics 365 Supply Chain Management. The company manages inventory by using a just-in-time approach.
A purchase order arrives for an item. The system must allow sales order shipments of the item to be posted before the purchase order invoice is received.
You must ensure that the item model group configuration allows for shipment of the items.
Which parameter should you enable? A. Physical negative inventory B. Registration requirements C. Include physical value D. Financial negative inventory E. Location profile negative inventory.
HOTSPOT
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A company uses Dynamics 365 Supply Chain Management. The company uses a Business Unit financial dimension. The dimension is required on items and posted on transactions.
The company wants to update item costs but exclude the required financial dimension. The change must include a warning to users before the update. The costing method should be calculated based on the expected, calculated cost to produce an item.
You must configure the system to meet the requirements.
Which actions should you perform? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point. Enable Options of defaulting financial dimensions for inventory standard cost revaluation
Select None Enable Options of defaulting financial dimensions for inventory standard cost revaluation
Select Table Enable Costing version maintenance
Select None.
A company uses Dynamics 365 Supply Chain Management.
You create a product by using an incorrect product dimension group. The product has not yet been released to the legal entities.
You need to determine whether you can change the product dimension group.
Which two conditions must be met? Each answer presents part of the solution.
NOTE: Each correct selection is worth one point. A. Dimensions must not be specified for the product master. B. The item must not already be validated. C. Dimensions must be specified that match the original but not the new product dimension group. D. The product master must not be released to any legal entities.
HOTSPOT
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A distribution company that uses Dynamics 365 Supply Chain Management values inventory through standard cost. The company does not manufacture any products.
Some items require incremental updates to the standard cost. The original costs must be retained for reporting purposes.
You need to update the standard costs of the items.
What should you configure? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point. Two version- Costing version- Standard Two version- Costing version- Planned One version- Costing version- Standard Two version- None - Standard.
HOTSPOT
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A company is implementing Dynamics 365 Supply Chain Management. The company uses subcontracted services on its bills of material (BOMs).
You must set up and release a subcontractor item so that it can be included on the BOM and subcontractor charges are included in the BOM calculation. Because the subcontractor is a step included in a BOM but not a tangible item, inventory for the item must not be tracked in the warehouse.
You need to set up the subcontractor item and release the item to the company.
What should you configure? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point. BOM line- Clear stocked product BOM designer- Clear stocked product Service product type- Select stocked product.
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.
A company uses Dynamics 365 Supply Chain Management.
The company obtains packaging cartons in metric tons and sells them as individual items. The packaging cartons come in various sizes and are maintained as product variants.
You need to configure unit conversion for the packaging cartons.
What should you do? A. Enable unit of measure conversions in the product master. Configure the intra-class unit conversion feature in the Organization administration module. B. Disable unit of measure conversions in the product master. Configure the inter-class unit conversion feature in the Organization administration module. C. Enable unit of measure conversions in the product master. Configure the standard unit conversion feature in the released products. D. Disable unit of measure conversions in the product master. Configure the intra-class unit conversion feature in the released products.
A company uses Dynamics 365 Supply Chain Management.
A large item fits only one item per pallet. A purchase order for the item must be a minimum of 24. Additional line quantities for the item must be in multiples of 24.
An incorrect setup for the item allows entry of multiples of 50. This setup error causes purchase order entry overrides.
You must configure the system to enforce a match of default quantities during setup.
What should you do? A. Select the Strict option. B. Select the Standard option. C. Configure Warehouse management options.
HOTSPOT
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A donut company is implementing Dynamics 365 Supply Chain Management.
The company wants to set up and maintain formula items for donut production. If the formula quantity changes, all ingredients must automatically adjust with no manual edits.
You must configure the formula features.
Which features should you use? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point. Variable- Scalable Variable- Step Fixed- Scalable Constant- Version.
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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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
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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
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• 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
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• 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
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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
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Requirements. Technology
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• Trey Research will integrate all pricing and discount capabilities to its e-commerce website.
Requirements. Items
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• 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
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• 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
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• 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 determine the costing versions for the requirements.
Which costing versions should you use? To answer, drag the appropriate costing versions to the correct requirements. Each costing version 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. Planned- Standard Planned- FIFO Moving average- Standard FIFO- Standard.
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.
Trey Research is now live on Dynamics 365 Supply Chain Management.
You need to apply the new cost model for the apparel items.
What should you do? A. Run Inventory close. B. Close all production orders. C. Configure Backflush costing. D. Run a BOM calculation.
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
-
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 products for the requirements.
Which configuration should you use? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.
Owner tracking dimensions- Released products Product filters- Released products Product filters- Customer groups.
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
-
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
-
• 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 conversions for the items.
Which measurement type should you use? To answer, drag the appropriate unit of measure types to the correct requirements. Each unit of measure 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. Standard- Intra-class Standard- Inter-class Inter-class - Intra-class.
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 smartboards.
What should you create? A. price groups B. a new product master for each variation C. a bill of material (BOM) version D. variants by using the variant suggestions tool.
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