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Last updated: May 2026

Practice Exam

MB-330Microsoft Dynamics 365 Supply Chain Management Functional Consultant

Test your knowledge with official exam-style questions

Questions25Passing700Exam time120 min

Questions and options are shuffled each attempt

Microsoft Certified: Dynamics 365 Supply Chain Management Functional Consultant AssociatePractice Set 1: All Questions & Explanations

Full question text, answer options, and explanations for this practice set — a spoiler-free alternative is the interactive quiz above for scored, shuffled practice.

  1. 1. You are a Dynamics 365 Supply Chain Management functional consultant. Your organization needs to create a product that will be sold in multiple configurations based on color and size. Which product type should you use?

    • A. Product master with product variants(correct)
    • B. Service item with product dimensions
    • C. Catch weight product with variant tracking
    • D. Kit product with component items

    Explanation: A product master in Microsoft Dynamics 365 Supply Chain Management allows you to define product dimensions (color, size, style, configuration, version) and generate product variants that represent each unique combination.

  2. 2. Your organization uses Microsoft Dynamics 365 Supply Chain Management. You need to define a product's bill of materials (BOM) and associate it with specific production routes. Which feature allows you to link BOMs and routes to a product for production purposes?

    • A. BOM version linked to a route version on the released product(correct)
    • B. Product configuration model with constraints
    • C. Item coverage settings with BOM reference
    • D. Trade agreement with production price

    Explanation: In Microsoft Dynamics 365 Supply Chain Management, BOM versions and route versions are maintained on released products. Both can have effective dates and site/warehouse applicability, and they are linked together for production order planning and costing.

  3. 3. Your organization uses Microsoft Dynamics 365 Supply Chain Management. You need to configure a product so that its cost price is calculated based on its BOM components and production routing. Which costing method should you use?

    • A. Standard cost with cost rollup from BOM(correct)
    • B. Moving average cost with manual price entry
    • C. FIFO cost with purchase price as basis
    • D. Weighted average cost based on receipts

    Explanation: Standard cost in Microsoft Dynamics 365 Supply Chain Management supports cost rollup from BOM components and routing operations. The system calculates the standard cost of finished goods based on the active BOM and route, providing accurate product costing for manufacturing.

  4. 4. You are a Dynamics 365 Supply Chain Management functional consultant. Your organization needs to configure quality attributes for a product to track specifications such as tensile strength and purity. Which feature should you use?

    • A. Product attributes with attribute types
    • B. Quality orders with test variables
    • C. Batch attributes linked to the item(correct)
    • D. Item model group with FIFO tracking

    Explanation: Batch attributes in Microsoft Dynamics 365 Supply Chain Management allow you to define and track quality characteristics (such as tensile strength, purity, or moisture content) at the inventory batch level for items that are batch-tracked.

  5. 5. Your organization uses Microsoft Dynamics 365 Supply Chain Management. You need to set up a product that is sold in both individual units and cases of 12. Which two configurations are required to support selling in both units of measure? Choose 2.

    • A. Unit of measure conversions on the product(correct)
    • B. Multiple item model groups for each unit
    • C. Sales unit of measure set to Case on the product(correct)
    • D. Trade agreement with price per unit of measure
    • E. Product dimension group with version dimension enabled

    Explanation: To support selling in multiple units of measure in Microsoft Dynamics 365 Supply Chain Management, you need: (1) unit of measure conversions defined on the product (e.g., 1 Case = 12 Each), and (2) the sales unit of measure set appropriately on the released product so order lines default to the correct unit.

  6. 6. You are a Dynamics 365 Supply Chain Management functional consultant. Your organization needs to track inventory by batch number for perishable goods to support first expiry first out (FEFO) picking. Which setup is required?

    • A. Item tracking dimension group with batch tracking enabled and FEFO date control(correct)
    • B. Item model group with FIFO costing method
    • C. Warehouse management parameter for expiry date picking
    • D. Quality order with shelf life validation

    Explanation: Enabling batch tracking in the tracking dimension group and enabling FEFO date control in Microsoft Dynamics 365 Supply Chain Management ensures that the system picks batches with the earliest expiry date first during warehouse operations.

  7. 7. Your organization uses Microsoft Dynamics 365 Supply Chain Management. You need to perform an inventory counting cycle where only items in a specific location are counted without halting warehouse operations. Which feature should you use?

    • A. Cycle counting in the warehouse management module(correct)
    • B. Inventory counting journal for the entire warehouse
    • C. On-hand inventory adjustment by storage dimension
    • D. Quality order for inventory inspection

    Explanation: Cycle counting in Microsoft Dynamics 365 Supply Chain Management allows targeted counts of specific locations or items without stopping warehouse operations. Work orders are generated for warehouse workers to count and confirm on mobile devices.

  8. 8. You are a Dynamics 365 Supply Chain Management functional consultant. Fourth Coffee receives goods that sometimes fail quality inspections. The company needs to quarantine failed goods and prevent them from being used in production until a disposition decision is made. Which feature should you use?

    • A. Quarantine orders that move items to a quarantine warehouse(correct)
    • B. Inventory blocking on the on-hand quantity
    • C. Quality order with automatic rejection status
    • D. Return orders sent back to vendor

    Explanation: Quarantine orders in Microsoft Dynamics 365 Supply Chain Management move items to a designated quarantine warehouse or location, physically and systemically preventing their use. Once the quality disposition is decided, items can be returned to stock, scrapped, or sent back to vendors.

  9. 9. Your organization uses Microsoft Dynamics 365 Supply Chain Management. You need to configure quality associations so that a quality order is automatically created when a purchase order product receipt is posted for a specific item. Which setup is required?

    • A. Quality association with event type set to Product receipt and reference type Purchase order(correct)
    • B. Quality order template assigned to the item model group
    • C. Vendor quality evaluation linked to the purchase agreement
    • D. Inventory counting journal triggered by receipt posting

    Explanation: Quality associations in Microsoft Dynamics 365 Supply Chain Management define when quality orders are automatically created. Setting the event type to Product receipt and the reference type to Purchase order will trigger a quality order each time a product receipt is posted for the specified item.

  10. 10. Your organization uses Microsoft Dynamics 365 Supply Chain Management. You need to view the total available inventory for a product across all warehouses, filtered by a specific site. Which form provides this information?

    • A. On-hand inventory inquiry filtered by site(correct)
    • B. Inventory transaction history for the product
    • C. Item coverage summary by dimension
    • D. Inventory value report by warehouse

    Explanation: The On-hand inventory inquiry in Microsoft Dynamics 365 Supply Chain Management provides real-time visibility of available, reserved, and ordered quantities by storage dimensions (site, warehouse, location) and tracking dimensions.

  11. 11. You are a Dynamics 365 Supply Chain Management functional consultant. Your organization needs to configure vendor collaboration so that vendors can confirm purchase orders and submit invoices through a web portal. Which feature should you enable?

    • A. Vendor collaboration portal with vendor user access(correct)
    • B. Vendor invoice journal with external access
    • C. Purchase agreement with auto-confirmation
    • D. Electronic data interchange (EDI) for vendor orders

    Explanation: Vendor collaboration in Microsoft Dynamics 365 Supply Chain Management provides a web portal where external vendor users can review purchase orders, confirm orders with or without changes, and submit invoices directly into the system.

  12. 12. You are a Dynamics 365 Supply Chain Management functional consultant. Contoso Ltd. wants to streamline its procurement process by creating blanket purchase agreements with preferred vendors that are referenced when creating purchase orders throughout the year. Which feature should you configure?

    • A. Purchase agreements with commitment type and release orders(correct)
    • B. Trade agreements with vendor price lists
    • C. Purchase requisitions with catalog items
    • D. Framework orders linked to purchase contracts

    Explanation: Purchase agreements in Microsoft Dynamics 365 Supply Chain Management allow you to negotiate committed quantities or values with vendors. Release orders can be created from the agreement, automatically referencing the agreed terms and prices.

  13. 13. Your organization uses Microsoft Dynamics 365 Supply Chain Management. A sales order needs to be shipped from a different warehouse than the one on the original order line because the original warehouse has insufficient stock. Which feature enables this without changing the sales order header?

    • A. Override the warehouse on the sales order line level(correct)
    • B. Create an intercompany transfer order for the stock
    • C. Use direct delivery to ship from the alternate warehouse
    • D. Configure a site-level default warehouse override

    Explanation: In Microsoft Dynamics 365 Supply Chain Management, warehouse can be overridden at the individual sales order line level. This allows fulfillment from an alternate warehouse without affecting other lines on the same order.

  14. 14. Your organization uses Microsoft Dynamics 365 Supply Chain Management. You need to configure a landed cost scenario where import duties and freight are included in the inventory cost of purchased goods. Which two steps are required? Choose 2.

    • A. Create a voyage in the Landed cost module and assign purchase order lines(correct)
    • B. Configure cost type codes for duties and freight in Landed cost(correct)
    • C. Post a price adjustment journal for the duty amount
    • D. Enable three-way matching for landed cost invoices
    • E. Configure vendor invoice groups for import charges

    Explanation: The Landed cost module in Microsoft Dynamics 365 Supply Chain Management requires: (1) configuring cost type codes to categorize charges such as duties and freight, and (2) creating a voyage and assigning the purchase order lines to it so that auto costs can be calculated and applied to inventory value.

  15. 15. Your organization uses Microsoft Dynamics 365 Supply Chain Management. You need to configure rebates that a vendor provides when cumulative purchase volumes exceed a threshold during a period. Which feature should you use?

    • A. Vendor rebate agreement with volume threshold tiers(correct)
    • B. Trade agreement with discount price journal
    • C. Purchase agreement with committed quantity
    • D. Accounts payable credit note for volume discounts

    Explanation: Vendor rebate agreements in Microsoft Dynamics 365 Supply Chain Management support tiered rebate structures based on cumulative purchase volumes or amounts over a defined period. The system tracks accruals and calculates the rebate amount for processing.

  16. 16. You are a Dynamics 365 Supply Chain Management functional consultant. Your organization is implementing advanced warehouse management. What must be enabled on the warehouse before warehouse management processes (WMS) can be used?

    • A. Use warehouse management processes toggle on the warehouse(correct)
    • B. Assign the warehouse to a transportation zone
    • C. Configure cycle counting thresholds
    • D. Enable advanced load planning on the warehouse

    Explanation: In Microsoft Dynamics 365 Supply Chain Management, the Use warehouse management processes (WMS) flag must be enabled on the warehouse record before advanced warehouse features such as license plates, locations, work templates, and mobile device operations become available.

  17. 17. Your organization uses Microsoft Dynamics 365 Supply Chain Management. You need to configure the system to direct put-away workers to place received goods in a specific zone based on the product's storage category. Which feature controls this directed put-away behavior?

    • A. Location directives with put-away strategies(correct)
    • B. Inventory status for storage dimension group
    • C. Wave template with put-away wave step
    • D. License plate grouping policy

    Explanation: Location directives in Microsoft Dynamics 365 Supply Chain Management define rules for where inventory should be placed (put-away) or picked from. They can be configured by item, item group, zone, or other criteria to direct workers to specific locations.

  18. 18. You are a Dynamics 365 Supply Chain Management functional consultant. Lucerne Publishing needs to batch multiple sales order pick lines into a single wave and release them to the warehouse floor based on a carrier shipping deadline. Which features should you configure?

    • A. Wave templates with wave processing methods and automatic release criteria(correct)
    • B. Work pools with priority-based picking sequences
    • C. Transportation management rate engine with carrier scheduling
    • D. Outbound load planning with load building templates

    Explanation: Wave templates in Microsoft Dynamics 365 Supply Chain Management define how shipment lines are grouped into waves and what processing methods run (create work, containerization, sort). Automatic release criteria such as shipping deadlines can be configured to trigger wave release.

  19. 19. Your organization uses Microsoft Dynamics 365 Supply Chain Management. You need to configure the transportation management module to automatically rate shop available carriers and select the lowest-cost carrier for outbound shipments. Which setup is required?

    • A. Rate engine with carrier rate masters and rate routes(correct)
    • B. Shipping carrier setup with manual rate entry
    • C. Freight reconciliation with carrier invoice matching
    • D. Transportation zone with flat rate per zone

    Explanation: The transportation management rate engine in Microsoft Dynamics 365 Supply Chain Management uses rate masters and rate routes configured for each carrier. During rate shopping, the system evaluates all applicable carriers and selects the lowest cost option.

  20. 20. Your organization uses Microsoft Dynamics 365 Supply Chain Management and the Warehouse Management mobile app. A worker needs to receive a purchase order and put it away. Which menu item configuration on the mobile device should you create?

    • A. Inbound work menu item with purchase order receiving and put-away work creation(correct)
    • B. Outbound work menu item for transfer orders
    • C. Inventory adjustment menu item for quantity correction
    • D. Ad hoc movement menu item for location transfer

    Explanation: Mobile device menu items in the Warehouse Management mobile app in Microsoft Dynamics 365 Supply Chain Management are configured for specific work types. An inbound purchase order receiving menu item creates receiving work and the associated put-away work for the warehouse worker.

  21. 21. You are a Dynamics 365 Supply Chain Management functional consultant. Your organization runs master planning to replenish inventory. The planning output shows planned orders that need to be approved before they can be firmed into actual orders. What are these planned orders called?

    • A. Planned orders generated by Planning Optimization(correct)
    • B. Forecasted orders from the demand forecast
    • C. Production proposals from the capacity schedule
    • D. Requisition lines from the purchase requisition workflow

    Explanation: Master planning in Microsoft Dynamics 365 Supply Chain Management generates planned orders (planned purchase orders, planned production orders, planned transfer orders) via Planning Optimization. These are recommendations that must be reviewed and firmed before becoming actual orders.

  22. 22. Your organization uses Microsoft Dynamics 365 Supply Chain Management. You need to configure master planning so that replenishment orders are only suggested when the on-hand quantity falls below the minimum quantity. Which coverage method should you use?

    • A. Min/max coverage with minimum and maximum quantities defined(correct)
    • B. Period coverage with a fixed order cycle
    • C. Requirement coverage based on demand
    • D. Manual coverage with no automatic suggestions

    Explanation: The Min/max coverage method in Microsoft Dynamics 365 Supply Chain Management generates a planned order when the projected on-hand quantity falls below the minimum quantity. The planned order brings inventory up to the maximum quantity.

  23. 23. You are a Dynamics 365 Supply Chain Management functional consultant. Woodgrove Bank's manufacturing division produces seasonal items. The company wants to smooth production over several months using a demand forecast rather than only reacting to actual orders. Which feature should you configure?

    • A. Demand forecast with reduction keys in master planning(correct)
    • B. Supply forecast for raw material procurement only
    • C. Sales order totals exported to Excel for manual planning
    • D. Capacity planning with rough-cut capacity simulation

    Explanation: Demand forecasting in Microsoft Dynamics 365 Supply Chain Management allows you to import or generate forecasts that drive master planning. Reduction keys determine how actual sales orders reduce the forecast over time, enabling smooth production plans for seasonal demand.

  24. 24. Your organization uses Microsoft Dynamics 365 Supply Chain Management. You need to configure master planning to respect vendor lead times when scheduling planned purchase orders. Where is the vendor lead time specified?

    • A. Default order settings or approved vendor list on the released product(correct)
    • B. Purchase agreement commitment dates
    • C. Warehouse management replenishment template
    • D. Item coverage override at the warehouse level

    Explanation: In Microsoft Dynamics 365 Supply Chain Management, vendor lead times for planning can be specified in the default order settings (purchase lead time) on the released product or on the approved vendor list entry for a specific vendor. Master planning uses these lead times to back-schedule planned purchase order dates.

  25. 25. Your organization uses Microsoft Dynamics 365 Supply Chain Management. You need to set up cluster picking so that a single warehouse worker can pick for multiple sales orders simultaneously using a mobile device. Which two items must you configure? Choose 2.

    • A. Cluster profile defining position count and sorting(correct)
    • B. Work template with cluster picking work type(correct)
    • C. Wave label template for cluster label printing
    • D. Location directive for cluster put-away
    • E. Outbound shipment consolidation policy

    Explanation: Cluster picking in Microsoft Dynamics 365 Supply Chain Management requires: (1) a cluster profile that defines how many positions a cluster can have, whether sorting is used, and how the cluster is confirmed, and (2) a work template configured for the cluster picking work order type to generate the multi-order work.