Q01 - Question
You configure item coverage for a seasonal product that experiences higher demand from June through August. The minimum inventory level is set to 500 units. You need to increase the minimum inventory to 1,250 units during the peak months. Which configuration should you use?
Domain: Implement master planning (10-15%) Type: Single choice
- A. Set the Minimum field to 1,250 and configure a minimum key with Factor 2.5 for June through August.
- B. Set the Minimum field to 500 and configure a minimum key with Factor 2.5 for June through August.
- C. Set the Minimum field to 1,250 and configure a maximum key with Factor 2.5 for June through August.
- D. Set the Minimum field to 500 and configure a maximum key with Factor 0.4 for June through August.
B is correct.
Explanation: Minimum keys account for seasonal fluctuations in demand. The Minimum field on the Item coverage page specifies the base minimum inventory (500 units). The Factor field on the minimum key multiplies the base value. A factor of 2.5 for June through August results in 500 × 2.5 = 1,250 units during those months.
A is incorrect: Setting the Minimum field to 1,250 and applying a factor of 2.5 would result in 3,125 units, which exceeds the requirement.
C is incorrect: Maximum keys control maximum inventory levels, not minimum inventory levels for seasonal demand.
D is incorrect: Maximum keys do not apply to minimum inventory requirements, and a factor of 0.4 would decrease the base value rather than increase it.
Q02 - Question
An item is already set up as a decoupling point. The supply chain manager wants the system to recalculate the item's buffer values daily or weekly based on sales history. The manager doesn't want planners to maintain the buffer values manually. What should you configure on the item coverage record?
Domain: Implement master planning (10-15%) Type: Single choice
- A. Set the Buffer values over time option to Yes.
- B. Set the Buffer values over time option to No, and then enter the Minimum, Reorder point, and Maximum values.
- C. Set the Order cycle field to one day.
- D. Enter a fixed estimated Average daily usage value.
A is correct.
Explanation: When you set Buffer values over time to Yes, the system recalculates the buffer values daily or weekly based on sales history.
B is incorrect: When you set Buffer values over time to No, you must enter and maintain the Minimum, Reorder point, and Maximum values yourself.
C is incorrect: The Order cycle field specifies the number of days that must pass between orders for the item. It doesn't control buffer recalculation.
D is incorrect: An estimated Average daily usage value is optional. The system calculates average daily usage as part of the buffer calculations.
Q03 - Question
You are configuring Planning Optimization in Dynamics 365 Supply Chain Management for a phased rollout. You want to test the functionality in one legal entity before deploying it to others. What should you configure to exclude a specific company from running Planning Optimization?
Domain: Implement master planning (10-15%) Type: Single choice
- A. Set the Connection status to Disconnected in Lifecycle Services.
- B. Toggle Exclude company from running Planning Optimization on the Company information tab.
- C. Disable the Planning Optimization configuration key in System administration.
- D. Set the Use Planning Optimization option to No on the Master plans page.
B is correct.
Explanation: You can toggle the Exclude company from running Planning Optimization option on the Company information tab to roll out Planning Optimization in phases on a per-company basis. This allows you to use a separate legal entity to test features before rolling out to other legal entities.
A is incorrect: Disconnecting the connection in Lifecycle Services affects the entire environment, not individual companies, and prevents any Planning Optimization functionality from working.
C is incorrect: Disabling the configuration key affects the entire system and is required to be enabled to use Planning Optimization at all, not for per-company exclusions.
D is incorrect: The Use Planning Optimization option is not available on the Master plans page; the phased rollout is controlled at the company level through the Exclude company setting.
Q04 - Question
A manufacturer uses Dynamics 365 Supply Chain Management. The planning team wants to start using Demand Driven Material Requirements Planning (DDMRP). The team also wants to keep its existing planning functionality. What should you do first to prepare the environment?
Domain: Implement master planning (10-15%) Type: Single choice
- A. Purchase a separate DDMRP license for each planner.
- B. Replace the existing master planning functionality with a new DDMRP module.
- C. Verify that the environment has the Planning Optimization add-in.
- D. Turn off priority-based planning before you configure DDMRP.
C is correct.
Explanation: DDMRP is included with Supply Chain Management at no extra license fee. However, your environment must have the Planning Optimization add-in.
A is incorrect: DDMRP doesn't require an extra license fee. It's included with Supply Chain Management.
B is incorrect: DDMRP isn't a new module and doesn't replace existing functionality. It adds more functionality that you can use.
D is incorrect: Priority driven MRP support for Planning Optimization is mandatory, and DDMRP uses priority-based planning.
Q05 - Question
You are configuring demand forecasting for a Microsoft Dynamics 365 Supply Chain Management environment. You need to ensure that demand forecasts can be generated across multiple legal entities for specific groups of items. What should you configure?
Domain: Implement master planning (10-15%) Type: Single choice
- A. Associate an item allocation key with an intercompany planning group member.
- B. Set the Forecast generation strategy to Copy over historical demand.
- C. Configure a minimum key for the item allocation key.
- D. Set the Default forecast plan on the Master planning parameters page.
A is correct.
Explanation: The evidence states that demand forecasting generates cross-company forecasts. To specify which item allocation keys should be considered for demand forecasting for each company, you must associate an item allocation key with the intercompany planning group member.
B is incorrect: Setting the Forecast generation strategy to Copy over historical demand is a method for creating a baseline forecast, but it does not group items across multiple legal entities.
C is incorrect: Minimum keys are used to handle seasonal fluctuations in demand for item coverage, not for grouping items across legal entities for demand forecasting.
D is incorrect: The Default forecast plan is specified on the Master planning parameters page to define the current forecast plan, but it does not control cross-company item groupings.
Q06 - Question
A planner reviews planned orders for a decoupled item after a master planning run. The planner wants to understand how the system creates and ranks the planned orders. Which two statements are correct? Each correct answer presents part of the solution.
Domain: Implement master planning (10-15%) Type: Multiple choice
- A. The system uses net flow, not only actual on-hand inventory, to determine the buffer zone that the item is in.
- B. The system assigns priority to planned orders based on requirement dates.
- C. The planned order quantity equals the maximum buffer level minus the net flow.
- D. Qualified demand includes only sales demand that's due after today.
A and C are correct.
Explanation: Master planning uses net flow to determine the buffer zone, so you account for orders when you plan resources. When a planned order is triggered, its quantity is the maximum level minus the net flow.
B is incorrect: The system uses priority-based planning instead of requirement dates. Priority is based on the ordered quantity as a percentage of maximum inventory.
D is incorrect: Qualified demand is past-due demand, plus today's demand, plus qualified order spikes in the future.
Q07 - Question
A pillow manufacturer has a multi-level bill of materials (BOM). The plant has only one fabric cutting machine. The planner decides to set the fabric kit as a decoupling point. Which decoupling point criterion does this decision address?
Domain: Implement master planning (10-15%) Type: Single choice
- A. External variability
- B. Critical operation protection
- C. Customer tolerance time
- D. Market potential lead time
B is correct.
Explanation: A single fabric cutting machine is a critical operation. When you set the fabric kit as a decoupling point, you protect that operation with a maintained inventory buffer.
A is incorrect: External variability applies when the materials for an item are difficult to source or their availability is volatile, such as the materials for foam billets.
C is incorrect: Customer tolerance time applies when customers expect short delivery times, which is a common reason to decouple the finished good.
D is incorrect: Market potential lead time is a separate criterion. The constraint here is a single machine, not market lead time.
Q08 - Question
You configure a plan filter for items A, B, and C on a master plan. You run the plan with a runtime filter for items A and D. After the run completes, you review the planned orders. Which items will have results in the planned orders?
Domain: Implement master planning (10-15%) Type: Single choice
- A. Items A, B, and C only
- B. Item A only
- C. Items A and D only
- D. Items A, B, C, and D
B is correct.
Explanation: Only the intersection of the two filters is included in the planning run. The plan filter includes A, B, and C, and the runtime filter includes A and D. The only item in both sets is A.
A is incorrect: The runtime filter limits the run to items A and D, so items B and C from the plan filter are excluded from this specific run.
C is incorrect: Item D is not in the plan filter (which is limited to A, B, and C), so it is excluded even though it is in the runtime filter.
D is incorrect: Only the intersection of the two filters is processed, not the union of both sets.
Q09 - Question
An item has on-hand inventory of 4 units. A sales order is scheduled for delivery in 90 days. The coverage group for the item has Positive days set to 85 and Negative days set to 0. What is the result when master planning runs?
Domain: Implement master planning (10-15%) Type: Single choice
- A. Master planning generates a planned purchase order because the sales order is outside the positive days interval.
- B. Master planning does not generate a planned purchase order because the current on-hand inventory covers the sales order within the positive days interval.
- C. Master planning generates an action message to advance the sales order within the positive days interval.
- D. Master planning generates a planned purchase order because the on-hand inventory is below the minimum quantity.
A is correct.
Explanation: The Positive days parameter defines a time interval during which a planned receipt can be used to fulfill a requirement. A sales order due in 90 days is outside the 85-day interval. Because the planned receipt (on-hand inventory) is outside the defined time interval, it cannot be used to fulfill the requirement, and master planning generates a new planned purchase order.
B is incorrect: Although on-hand inventory exists, it cannot be used to fulfill a requirement outside the positive days interval (90 days exceeds 85 days).
C is incorrect: Action messages for advancing orders are controlled by the Advance margin parameter on the coverage group, not by the positive days setting.
D is incorrect: The scenario does not specify a minimum quantity; the planned order is generated because the sales order is outside the positive days interval, not because of minimum stock levels.
Q10 - Question
You approve several planned orders and then run master planning again. What happens to the approved planned orders during the subsequent master planning run?
Domain: Implement master planning (10-15%) Type: Single choice
- A. The approved orders are deleted and regenerated based on current demand.
- B. The approved orders are copied from the old plan version to the new plan without modification.
- C. The approved orders are automatically firmed into purchase orders, transfer orders, or production orders.
- D. The approved orders are changed to Completed status and excluded from future planning runs.
B is correct.
Explanation: Planned orders with a status of Approved are considered as fixed supply during master planning. When another plan is run, the system copies the approved orders from the old plan version to the new plan without modification. Approved orders are not deleted or changed during subsequent runs.
A is incorrect: Approved orders are not deleted during the next master planning run. Only orders with Unprocessed status are deleted and regenerated based on current data.
C is incorrect: Approval does not automatically firm orders. Firming is a separate process that converts planned orders into actual orders and requires either manual action or auto-firming configuration.
D is incorrect: Completed status indicates that you have evaluated the order and decided not to firm it. The system treats Unprocessed and Completed statuses the same, not Approved and Completed.