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Microsoft Dynamics 365 Supply Chain Management Question and Answers

Microsoft Dynamics 365 Supply Chain Management

Last Update Feb 28, 2026
Total Questions : 405

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Questions 1

You need to configure the smartboards.

What should you create?

Options:

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

Discussion 0
Questions 2

You need to set up and year for the desks.

What should you configure first?

Options:

A.  

attribute type

B.  

variant

C.  

friendly name

D.  

item type

E.  

attribute definition

Discussion 0
Questions 3

You need to configure the system to automatically enforce inbound and outbound product requirements to and from the warehouse.

Which feature should you use?

Options:

A.  

quality associations

B.  

quality orders

C.  

quarantine zones

D.  

quality tests

E.  

nonconformances

Discussion 0
Questions 4

You need to configure the products in Dynamics 365 Supply Chain Management for the requirements.

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

NOTE: Each correct selection is worth one point.

Options:

Discussion 0
Questions 5

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.

Options:

Discussion 0
Questions 6

You need to configure automated testing for the following tasks:

• inbound processes from manufacturing

• outbound processed from the warehouse picking process

How many processes should you configure?

Options:

A.  

2

B.  

3

C.  

4

D.  

10

Discussion 0
Questions 7

You need to define the number of quarantine zones.

How many should you define?

Options:

A.  

1

B.  

2

C.  

4

D.  

6

E.  

8

Discussion 0
Questions 8

You need to set up reordering for new items.

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

NOTE: Each correct selection is worth one point.

Options:

A.  

Create one coverage group for raw materials and one for finished goods.

B.  

Set the item coverage manual flag on the warehouse to Yes.

C.  

Create separate coverage groups for raw materials, finished goods, and retail packaging.

D.  

Set the item coverage manual flag on the warehouse to No.

E.  

Create one coverage group for retail packaging items and another for items in the warehouse

Discussion 0
Questions 9

You need to configure the system for the customer tier B pricing.

What should you do?

Options:

A.  

Configure an item sales control for the item.

B.  

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

C.  

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

D.  

Assign the item to the customer tier B price group.

E.  

Approve and confirm the trade allowance agreement.

Discussion 0
Questions 10

You need to configure the pricing for the white-labeled products.

Which system object should you configure? To answer, select the appropriate options in the answer area.

NOTE: Each correct selection is worth one point.

Options:

Discussion 0
Questions 11

You need to configure a new item that contains a vintage. What should you configure for the vintage?

Options:

A.  

Color

B.  

Configuration

C.  

Batch

D.  

Owner

E.  

Style

Discussion 0
Questions 12

You need to configure the requirements for WineA.

What should you configure? To answer, select the appropriate options in the answer area

NOTE: Each correct selection is worth one point.

Options:

Discussion 0
Questions 13

You need to configure cheese smart numbering to meet the requirement Which component should you configure?

Options:

A.  

Country of origin

B.  

Filter codes

C.  

Purchase agreement

D.  

Default order settings

Discussion 0
Questions 14

You need to resolve Operator's label issue.

Which solutions will achieve the resolution of the labels? To answer, select the appropriate options in the answer area.

NOTE; Each correct selection is worth one point.

Options:

Discussion 0
Questions 15

You need to configure the requirements for the operations coordinator and the inbound load for Vendor!

What should you configure for each requirement? To answer, select the appropriate options in the answer area.

NOTE: Each correct selection is worth one point.

Options:

Discussion 0
Questions 16

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.

Options:

Discussion 0
Questions 17

You need to enable the system to correctly calculate vendor claims.

Which configurations should you use for the rebates? To answer, move the appropriate configurations to the correct requirements. You may use each configuration once, more than once, or not at all. You may need to move the split bar between panes or scroll to view content.

NOTE: Each correct selection is worth one point.

Options:

Discussion 0
Questions 18

You need to configure transport providers for delivering products to the retail stores from Vendor1.

How should you complete the configuration? To answer, select the appropriate options in the answer area.

NOTE: Each correct selection is worth one point.

Options:

Discussion 0
Questions 19

Employee3 needs to schedule deliveries.

How should Employee3 plan for a carrier to deliver goods to Store2? To answer, select the appropriate options in the answer area.

NOTE: Each correct selection is worth one point.

Options:

Discussion 0
Questions 20

You need to configure quality controls.

Which solution objects should you configure? To answer, drag the appropriate solution objects to the correct configurations. Each solution object 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.

Options:

Discussion 0
Questions 21

You need to set up financial components for the new items.

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

NOTE: Each correct selection is worth one point.

Options:

A.  

Assign items to a FIFO item model group.

B.  

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

group.

C.  

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

items to these groups.

D.  

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

E.  

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

to these groups.

Discussion 0
Questions 22

You need to configure item pricing and discounts.

How should you complete the setup? To answer, select the appropriate options in the answer area.

NOTE: Each correct selection is worth one point.

Options:

Discussion 0
Questions 23

Employee 1 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.

Options:

A.  

Create new finished goods and release to the legal entity

B.  

Create new raw materials and release to the legal entity.

C.  

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

D.  

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

E.  

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

Discussion 0
Questions 24

You need to configure automatic warehouse inventory replenishment for items.

How should you complete the setup? To answer, select the appropriate options in the answer area.

NOTE: Each correct selection is worth one point.

Options:

Discussion 0
Questions 25

You need to complete the shipments.

What should you do?

Options:

A.  

Create work for printing shipping documents and send an ASN.

B.  

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

C.  

Confirm the load and generate packing dips and bills of lading.

D.  

Confirm shipments and generate picking lists and bills of lading.

Discussion 0
Questions 26

You need to complete the shipments.

Options:

A.  

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

B.  

Create waves to generate work for shipping loads and send an ASN.

C.  

Confirm shipments and generate pick/put work.

D.  

Create work for printing shipping documents and send an ASN.

Discussion 0
Questions 27

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.

Options:

A.  

Enter a manual forecast for the initial stock levels at the retail stores.

B.  

After the first month of face mask sales, look at the warehouse sales orders for the past 30 days to

generate a demand forecast.

C.  

After the first month of face mask sales, review store sales for the past 30 days to generate a demand

forecast.

D.  

After the first month of face mask sales, create a forecast for the warehouse and a second forecast for the

retail stores.

E.  

After the first month of face mask sales, create a manual forecast for the warehouse and automatically

generate a demand forecast for the stores.

Discussion 0
Questions 28

You need to consolidate orders and prepare to rate shop shipments.

How should you complete the setup? To answer, select the appropriate options in the answer area.

NOTE: Each correct selection is worth one point.

Options:

Discussion 0
Questions 29

You need to create new location directives.

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

NOTE: Each correct selection is worth one point.

Options:

Discussion 0
Questions 30

You need to enable the automatic firming of planned orders from the master planning solution.

Where do you enable the functionality?

Options:

A.  

Lifecycle Services

B.  

Master planning parameters

C.  

Feature management workspace

D.  

On the released item

Discussion 0
Questions 31

Employee1 must set up the new BOM.

Which three actions should Employee! perform' Each correct answer presents part of the solution.

NOTE Each correct selection is worth one point.

Options:

A.  

Activate the BOM.

B.  

Create a new BOM for Store1, Store2, and Store3.

C.  

Create a new BOM for Site1 only.

D.  

Add the raw materials to the BOM and approve it.

E.  

Add the raw mandate to the BOM and approve the BOM version.

Discussion 0
Questions 32

You need to define the value of the brakes.

What should you set up? To answer, select the appropriate options in the area.

NOTE: Each correct selection is worth one point.

Options:

Discussion 0
Questions 33

Negotiations with the vendor are complete.

You need to set up the new price for tires.

What should you configure to meet the business requirements? To answer, select the appropriate options in the area.

NOTE: Each correct selection is worth one point.

Options:

Discussion 0
Questions 34

You need to define where the tires should be put away in the warehouse.

How should you set up the location directives? To answer, select the appropriate options in the answer area.

NOTE: Each correct selection is worth one point.

Options:

Discussion 0
Questions 35

You need to order the high-end tires.

What should you set up? To answer, select the appropriate options in the answer area.

NOTE: Each correct selection is worth one point.

Options:

Discussion 0
Questions 36

You need to include the items from the purchase order in the Intrastat journal.

What should you do?

Options:

A.  

Transfer the Product Receipt form to the Intrastat journal.

B.  

Create a free text invoice.

C.  

Transfer the invoice to the Intrastat journal.

D.  

Create a manual Intrastat journal transaction.

Discussion 0
Questions 37

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.

Options:

A.  

Assign a blocked status to the inbound purchase order from Vendor

A.  

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.

Discussion 0
Questions 38

You need to set up the procurement category hierarchy in accordance with company policy.

What should you do?

Options:

A.  

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

Colorado.

B.  

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

C.  

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

D.  

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

Discussion 0
Questions 39

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.

Options:

Discussion 0
Questions 40

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.

Options:

Discussion 0
Questions 41

You need to resolve the issue for UserC.

What should you do?

Options:

A.  

Change the inventory status only.

B.  

Change the inventory status and run the replenishment process.

C.  

Change the inventory status and complete a movement journal.

D.  

Create a transfer order and change the inventory status.

Discussion 0
Questions 42

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.

Options:

Discussion 0
Questions 43

A company uses Dynamics 365 Supply Chain Management for master planning in manufacturing processes.

Master planning runs have increased in processing time over the past month.

You need to identify the impact of configuration changes on performance from a single location.

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

NOTE: Each correct selection is worth one point.

Options:

Discussion 0
Questions 44

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.

Options:

A.  

Assign a Phantom bill of materials (BOM) line.

B.  

Create a manual quality order for existing inventory.

C.  

Assign brakes to an inventory status that is blocked.

D.  

Create an automatic quality order for existing inventory.

Discussion 0
Questions 45

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.

Options:

A.  

Set execution to after product receipt.

B.  

Set per updated quantity to yes.

C.  

Set execution to before product receipt.

D.  

Set per updated quantity to no.

Discussion 0
Questions 46

A company uses Dynamics 365 Supply Chain Management.

The company classifies and tracks products based on how useful they are for achieving their business goals. Certain product classifications are important in relation to inventory controls and margins. Other classifications have a small profit margin and are less important for inventory variances.

The classification configuration must feed into existing classification reports and system logic.

You need to configure the products for the classifications.

Where should you configure the classifications?

Options:

A.  

Unreleased product variant

B.  

Released product variant

C.  

Product attributes

D.  

Unreleased product

E.  

Released product

Discussion 0
Questions 47

A company is implementing Dynamics 365 Supply Chain Management in one legal entity that contains Sitel1 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 it at Site'.

You must configure ItemA to ensure the buying rules are implemented

What should you configure?

Options:

A.  

Variant group

B.  

Variant suggestions

C.  

Default order rules

D.  

Select product variants to release

Discussion 0
Questions 48

A company plans to implement Dynamics 365 for Finance and Operations shipping manifests.

The company wants to use a multiple-level manifest process. You need to ensure that the system is configured for multiple-level manifest processing.

What should you validate?

Options:

A.  

All container groups are manifested before the shipment is manifested

B.  

All containers are of the status open before the group is manifested

C.  

The allow split picks configuration is enabled

D.  

All container types are set up with all four attributes

Discussion 0
Questions 49

You are the logistics manager at a distribution company. Your primary carrier service provides rates for transportation between New York City and Colorado. These

rates are a flat rate depending on the city or general area of pickup as follows:

    New York City = $500

    Colorado = $450

You need to set up Transportation Management to calculate the rate from New York City to Colorado.

What should you do?

Options:

A.  

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

B.  

Set up zones in the Zone Master for New York City and Colorado. Assign rates to each zone in the Zone Master by starting and ending location.

C.  

Create hubs for both locations. Add a route plan from New York City to Colorado and assign the two charges as spot rates.

D.  

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

Discussion 0
Questions 50

A distribution company implementing Dynamics 365 Supply Chain Management has two warehouses.

One item is purchased and stocked in only Warehouse1. Occasionally, Warehouse2 requires this item based on customer demand. When this occurs, an order for the item must be automatically created for Warehouse2.

You need to configure the automation of the order for Warehouse2.

What should you configure? To answer, select the appropriate options in the answer area.

NOTE: Each correct selection is worth one point.

Options:

Discussion 0
Questions 51

A company requires that a percentage of the building overhead costs as well as a percentage of overall labor must be added to a costing sheet for each item.

The company also requires that the labor and overhead costs be calculated independently and then rolled up to a total amount.

Which three actions should you perform to meet the requirements?

Select all answers that apply.

Options:

A.  

Select Cost group type as a node.

B.  

Create indirect cost subnodes.

C.  

Define the costing sheet format.

D.  

Define the rate amount on the node.

E.  

Define the rate amount on the cost group.

Discussion 0
Questions 52

A company uses Dynamics 365 Supply Chain Management to manage procurement operations.

The company plans to source some product lines from offshore vendors. The company wants to use the landed cost module feature for the shipment tracking and item costing.

You need to configure the procurement requirements.

What should you do? To answer, select the appropriate options in the answer area.

NOTE: Each correct selection is worth one point.

Options:

Discussion 0
Questions 53

A company has items in inventory with two costing methods: FIFO and Standard. The company needs to calculate the cost of all items at month end and provide a total inventory value to the finance department.

You need to determine the total value of inventory.

Which costing method requires running the inventory close?

Options:

A.  

FIFO and Standard Cost items

B.  

FIFO items only

C.  

LIFO, Moving Average, and Date Weighted Average items

D.  

Standard Cost items only

Discussion 0
Questions 54

A company creates several item costing versions.

All new and existing items have costs associated with them. After applying the costs, the company notices the activation date has not been updated.

You need to update the items to the current date for activation.

What should you do?

Options:

A.  

Set the item cost record status to Active

B.  

Set the from date to today and leave the item cost record status at Pending

C.  

Set the item cost record status to Pending

D.  

Set the cost price and date of price on the released product

Discussion 0
Questions 55

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 claim in Accounts receivable. Set up the third party as a customer to be paid royalties for use of the logo.

Does the solution meet the goal?

Options:

A.  

yes

B.  

No

Discussion 0
Questions 56

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 an external catalog.

Does the solution meet the goal?

Options:

A.  

Yes

B.  

No

Discussion 0
Questions 57

A company implements Dynamics 365 Supply Chain Management.

You complete the prerequisites to implement the master planning optimization.

You need to configure the planning optimization feature.

What should you do? To answer, select the appropriate options in the answer area.

NOTE: Each correct selection is worth one point.

Options:

Discussion 0
Questions 58

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 WMS for the new products.

Which two actions should you perform? Each correct answer presents a complete solution

Options:

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 cornpanies.

C.  

Create a product master assign configuration

D.  

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

Discussion 0
Questions 59

You need to configure the whiteboard paint requirements for schools.

Which two settings should you configure? Each answer presents part of the solution.

NOTE: Each correct selection is worth one point.

Options:

A.  

Quantity commitment

B.  

Max is enforced

C.  

Price and discount is fixed

D.  

Minimum release amount

E.  

Maximum release amount

Discussion 0
Questions 60

You must meet the requirement for WarehouseWorker1.

Which process should you use? To answer, drag the appropriate processes to the correct locations. 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.

Options:

Discussion 0
Questions 61

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.

Options:

Discussion 0
Questions 62

You must configure the acrylic paint requirements.

What should you configure? To answer, select the appropriate option in the answer area.

NOTE: Each correct selection is worth one point.

Options:

Discussion 0
Questions 63

You need to set up pricing to solve the paint program school complaint.

What should you configure? To answer, select the appropriate options in the answer area.

NOTE: Each correct selection is worth one point.

Options:

Discussion 0
Questions 64

You need to process the expedited photocopier replacement.

What should you do?

Options:

A.  

Release the order to the warehouse for shipping.

B.  

Create and release a load for the order.

C.  

Send the shipment to the warehouse before sending it to the customer.

D.  

Create an advance exchange order.

Discussion 0
Questions 65

You need to configure the vendor pricing for pencils.

What should you do? To answer, select the appropriate option in the answer area.

NOTE: Each correct selection is worth one point.

Options:

Discussion 0
Questions 66

You must configure pen flash sale prices.

What should you configure? To answer, select the appropriate option in the answer area.

NOTE: Each correct selection is worth one point.

Options:

Discussion 0
Questions 67

You need to provide the information for the costing manager.

What should you do first?

Options:

A.  

Check cost prices.

B.  

Check for open quantities.

C Close and adjust cancellation.

C.  

View close settlements.

Discussion 0
Questions 68

You need to configure the system to identify the complaints for the chalk and blackboard items.

Which two settings should you configure? Each answer presents part of the solution.

NOTE: Each correct selection is worth one point.

Options:

A.  

Quarantine zone

B.  

Item sampling

C.  

Quality orders

D.  

Inventory status

Discussion 0
Questions 69

You need to configure the system to support the pottery line.

What should you do first?

Options:

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.

Discussion 0
Questions 70

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.

Options:

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.

Discussion 0