Topic 3: Adventure Works Cycles

A distribution company uses Dynamics 365 Supply Chain Management.
The company implements a new safety policy. The policy dictates that all business units must undergo a rapid routine safety checkup every week To follow the new policy, the warehouse manager must ensure the following:

• The business unit must be unavailable for use during that period.
• The maintenance activities must be conducted during the lunch break to avoid production downtime losses.

You must configure the system to meet the safety requirements.
Which two configurations should you complete? Each correct answer presents a part of the solution.
NOTE: Each correct selection is worth one point.

A. Work order service levels

B. Asset BOMs

C. Attributes

A.   Work order service levels
B.   Asset BOMs

Explanation:
The question requires configuring maintenance activities for weekly safety checkups during lunch breaks while making business units unavailable. In Asset Management, work orders manage maintenance tasks, and service levels can prioritize timing. Asset BOMs define components that may need inspection or replacement during safety checks. The correct configurations ensure scheduling during specific times and unavailability during maintenance.

Correct Options:

A. Work order service levels -
Service levels allow prioritizing work orders and scheduling them within specific timeframes. Configuring service levels enables the warehouse manager to ensure safety checkup work orders are scheduled during lunch breaks, meeting the timing requirement while maintaining operational efficiency.

B. Asset BOMs -
Asset BOMs list all components and subassemblies of an asset that may require inspection during safety checkups. This ensures maintenance workers have a complete checklist of items to examine during the rapid routine safety checkup, covering all critical parts of the business unit.

Incorrect Options:

C. Attributes -
While attributes can capture specific characteristics of assets or work orders, they don't directly control scheduling or component inspection requirements needed for the safety policy implementation.

Reference:
Microsoft Learn: Asset management work order service levels and Asset BOMs

A distribution company uses Dynamics 365 Supply Chain Management.
A high-volume warehouse for the distribution company automatically releases transfer order lines to the warehouse throughout the day.
Order line quantities are frequently changed after release to the warehouse. However, the load lines are not always updated.
You need to configure automatic updates to the load lines.
What should you configure? To answer, select the appropriate options in the answer area. NOTE: Each correct selection is worth one point.




Explanation:
The scenario involves a high-volume warehouse where transfer order lines are automatically released to the warehouse, but load lines don't always update when order quantities change after release. In Dynamics 365, warehouse parameters and wave templates control how load lines are updated when changes occur to released order lines.

Correct Options:

Requirement: Set up shipments to always auto-update | Configuration: Configure Warehouse parameters
Warehouse parameters contain settings that control automatic updates to shipments and loads. Within these parameters, there are options to automatically update shipment information when changes occur to source documents, ensuring load lines reflect current order quantities.

Requirement: Configure the Wave template | Configuration: Enable automatic work creation
Wave templates determine how work is created for loads. Enabling automatic work creation ensures that when load lines are updated, new warehouse work is automatically generated to reflect the changed quantities, maintaining accuracy between order lines and actual warehouse tasks.

Incorrect Options:

Configure Site parameters - Site parameters manage site-level settings but don't control automatic updates to shipments or wave processing.

Configure Transfer orders - Transfer order configuration doesn't directly impact how load lines update when quantities change after release.

Disable automatic work creation - This would prevent work from being created or updated, exacerbating the problem rather than solving it.

Enable automatic wave creation - While related, this controls when waves are created, not how load lines update in response to quantity changes.

Reference:
Microsoft Learn: Warehouse parameters and Wave templates

A company plans to make changes to change management processes for purchase orders.
Currently, the system requires an approval for any change. The company wants to implement re-approval only when there is a change to the quantity or the unit price in a purchase order.
You need to configure the change management process to require re-approval only on changes to quantity and unit price.
In which order should you perform the actions? To answer, move all actions from the list of actions to the answer area and arrange them in the correct order.




Explanation:
The question requires configuring purchase order change management to require re-approval only for specific field changes (quantity and unit price). In Dynamics 365, this is achieved through purchasing policies and policy rules that define which field changes trigger re-approval. The configuration follows a logical sequence of accessing policies, creating rules, and defining the triggering fields.

Correct Sequence:

Create a new purchasing policy or edit an existing one -
First, access the purchasing policies to either create a new policy or modify an existing one that will contain the re-approval rules for purchase orders.

Select re-approval rule for purchase orders policy and create a new policy rule -
Within the purchasing policy, select the specific rule type for purchase order re-approval and create a new policy rule that will define the conditions requiring re-approval.

Select re-evaluation fields (quantity and price) and add to the policy rule -
Finally, configure the policy rule by selecting the specific fields (quantity and unit price) that will trigger re-approval when changed, and add them to the rule.

Reference:
Microsoft Learn: Purchase order approval and change management

A company uses Dynamics 365 Supply Chain Management. The company acquired a multinational food packaging business that has 30 facilities operating in multiple countries/regions.
Packaging machines must be systematically registered and tracked across all facilities You need to create the packing machine assets to meet the tracking requirements.
What should you create?

A. functional location

B. functional location lifecyde model

C. functional location type

D. functional location lifecyde state

A.   functional location

Explanation:
The question involves tracking packaging machines across 30 multinational facilities. In Asset Management, functional locations represent physical structures where assets are installed. By creating functional locations for each facility and associating packaging machines to them, the company can systematically track assets across all locations while maintaining a hierarchical view of asset placement.

Correct Option:

A. functional location -
Functional locations provide the organizational structure for grouping and tracking assets by physical location. Creating functional locations for each of the 30 facilities allows the packaging machines to be systematically registered and tracked across all facilities, enabling location-based asset management and reporting.

Incorrect Options:

B. functional location lifecycle model -
This defines the approval and status workflow for functional locations themselves, not for tracking assets within them.

C. functional location type -
This categorizes functional locations (e.g., production hall, warehouse) but does not directly enable asset tracking.

D. functional location lifecycle state -
This represents the current status of a functional location (e.g., active, under construction), not a structure for asset registration.

Reference:
Microsoft Learn: Functional locations in Asset management

A company is implementing asset management in Dynamics 365 Supply Chain Management.
The company manually assigns workers to work orders. The quality of maintenance suffers due to the manual assignment process.
The company requires preferred maintenance workers to be assigned to a given work order based on specific criteria.
You need to assign the workers to work orders.
Which criteria should you use?

A. title

B. asset type

C. job

D. work history

D.   work history

Explanation:
The question addresses improving work order worker assignments by using specific criteria rather than manual assignment. In Asset Management, worker assignment can be automated based on various factors. The correct criteria should enable the system to recommend or assign workers who are best qualified for specific maintenance tasks based on demonstrated capability and experience.

Correct Option:

D. work history -
Work history tracks which workers have previously performed maintenance on specific assets or asset types. By analyzing work history, the system can identify preferred workers who have successfully completed similar maintenance tasks in the past, ensuring quality and consistency in work order assignments.

Incorrect Options:

A. title -
Job titles indicate role or position but don't reflect actual experience or competency with specific assets or maintenance tasks.

B. asset type -
While asset type helps categorize what needs maintenance, it doesn't identify which workers are most qualified or experienced with that asset type.

C. job -
Jobs define maintenance tasks but don't capture worker competency or historical performance with those tasks.

Reference:
Microsoft Learn: Worker assignment in Asset management

You are the warehouse manager at a distribution center.
In the warehouse, items must be moved to a staging location before moving to the baydoor location for shipping.
You need to set up a work template that accomplishes this pick/put scenario.
Which two actions should you perform? Each correct answer presents part of the solution.
NOTE: Each correct selection is worth one point.

A. Create one work class ID with valid location types of staging and baydoor. Assign these to the work template details.

B. Create two work templates: one is a pick/put from inventory to staging and the other is from staging to baydoor.

C. Create a sales order work template with two pick/put pairs: one to staging and the second to baydoor.

D. Create two work class IDs: one with valid put location types of staging and the other of baydoor. Assign these to the appropriate put work types on the work template.

B.   Create two work templates: one is a pick/put from inventory to staging and the other is from staging to baydoor.
D.   Create two work class IDs: one with valid put location types of staging and the other of baydoor. Assign these to the appropriate put work types on the work template.

Explanation:
The scenario requires moving items first to a staging location and then to a baydoor for shipping. This is a two-step pick/put process that typically requires separate work templates for each movement. Work classes control where items can be put based on location types, so appropriate work classes must be created for staging and baydoor locations.

Correct Options:
B. Create two work templates: one is a pick/put from inventory to staging and the other is from staging to baydoor. -
Two separate work templates are needed because this is a sequential process with different source and destination locations. The first template handles movement from storage to staging, while the second manages staging to baydoor.

D. Create two work class IDs: one with valid put location types of staging and the other of baydoor. Assign these to the appropriate put work types on the work template. -
Work classes control which locations can be used for put operations. Separate work classes ensure items can only be put to staging in the first step and to baydoor in the second step, enforcing the required flow.

Incorrect Options:

A. Create one work class ID with valid location types of staging and baydoor. Assign these to the work template details. -
A single work class allowing both location types wouldn't enforce the sequential staging-to-baydoor flow and could allow direct movement to baydoor.

C. Create a sales order work template with two pick/put pairs: one to staging and the second to baydoor. -
While this might seem logical, work templates don't support multiple pick/put pairs in this sequential manner; this would create a single work order with multiple steps rather than two separate movements.

Reference:
Microsoft Learn: Work templates and work classes

A company is implementing Dynamics 365 Supply Chain Management. Inventory is valued through FIFO costing.
The company is preparing for cutover and go-live activities. The accounting manager wants to ensure that on-hand inventory is brought into Dynamics 365 Supply Chain Management at the correct cost.
ItemA has the following costing tiers:

• Tier 1: 20 each, $5
• Tier 2: 20 each, $10
• Tier 3: 20 each, $15

You need to configure the item and journals to meet the cutover requirement.
What should you configure? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.




Explanation:
The cutover scenario requires importing on-hand inventory with FIFO costing using specific costing tiers (20 units at $5, $10, and $15). In Dynamics 365, item model groups determine the costing method, while specific journals allow importing inventory with tiered costing by date to establish correct FIFO layers.

Correct Options:

Requirement: Configure item for FIFO | Configuration: Item model group
Item model groups define inventory policies including costing method. Creating or selecting an item model group with FIFO costing ensures ItemA values inventory using the First-In-First-Out principle. The item must be assigned to this model group to enable FIFO valuation.

Requirement: Configure journal for import | Configuration: Item arrival by date per tier
Item arrival journal by date per tier allows importing inventory with specific quantities, costs, and dates. This creates distinct inventory transactions for each tier (Tier 1: 20 @ $5, Tier 2: 20 @ $10, Tier 3: 20 @ $15) with different receipt dates, establishing the FIFO layers correctly.

Incorrect Options:

Item group - This groups items for reporting and parameters but doesn't control costing method.

Price group - Used for trade agreement pricing, not inventory costing method.

Costing version - Stores costs but doesn't define the FIFO method or allow tiered receipt entry.

Movement by date per tier - Used for inventory transfers, not initial receipt of on-hand inventory.

Counting by tier - Used for cycle counting adjustments, not initial inventory setup.

Reference:
Microsoft Learn: Item model groups and FIFO costing

A company is implementing Dynamics 365 Supply Chain Management.
The company requires that historical transactional data from the current system be used to determine future inventory needs. Transactions that fall outside of a standard deviation must be excluded.
You need to configure the system to meet the requirements.
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.




Explanation:
The question involves using historical transactional data to forecast future inventory needs while excluding outliers beyond a standard deviation. In Dynamics 365, Demand forecasting analyzes historical data to predict future demand. This feature includes statistical methods to identify and exclude outliers, ensuring forecast accuracy by removing anomalous transactions.

Correct Options:

Requirement: Use historical transactional data to define future inventory | Configuration: Demand forecasting
Demand forecasting uses historical transaction data to generate predictions of future inventory requirements. The feature analyzes past consumption patterns to create statistically valid forecasts that inform procurement and inventory planning decisions.

Requirement: Exclude transactions outside of a standard deviation | Configuration: Demand forecasting
Demand forecasting includes parameters for outlier removal based on statistical methods. By configuring the forecast algorithm to exclude transactions falling outside specified standard deviation thresholds, the system automatically filters anomalous data points that would otherwise skew predictions.

Incorrect Options:

Safety stock journal -
This is used for manual adjustments to safety stock levels, not for analyzing historical data or generating forecasts.

Planning optimization -
This is the master planning engine that uses forecasts to generate planned orders, but it doesn't analyze historical data or exclude outliers itself.

Using Planning optimization for either requirement -
Planning optimization consumes forecast data but doesn't create it or perform statistical outlier analysis.

Reference:
Microsoft Learn: Demand forecasting overview

A distribution company is implementing Dynamics 365 Supply Chain Management.
The company plans to expand into providing trucking services for its primary distribution center. The company may expand into other locations later.
All vehicle maintenance will be performed at standardized intervals to meet trucking regulations.
The vehicles must be established on the maintenance schedule at the distribution center.
The fleet manager requires all vehicles to be grouped together by location for the distribution center and by sublocations for any hubs.
The company requires the following implementation:

• Sublocations must inherit the maintenance schedule.
• Non-vehicle assets must not inherit the maintenance schedule.

You need to configure the system to meet the requirements. What should you configure?

A. asset counters

B. functional location types

C. work orders

D. asset service levels

B.   functional location types

Explanation:
The scenario requires grouping vehicles by location with maintenance schedule inheritance for sublocations but not for non-vehicle assets. In Asset Management, functional location types control inheritance behavior for maintenance plans, attributes, and other settings. Configuring functional location types properly enables the required inheritance pattern across locations.

Correct Option:

B. functional location types -
Functional location types define how maintenance requirements are inherited through location hierarchies. By configuring separate functional location types for the distribution center (where vehicles are located) and hubs (sublocations), with inheritance enabled, vehicle maintenance schedules automatically flow down while preventing non-vehicle assets from inheriting vehicle-specific maintenance schedules.

Incorrect Options:

A. asset counters -
Asset counters track usage metrics like hours or mileage, but don't control inheritance of maintenance schedules across locations.

C. work orders -
Work orders represent individual maintenance tasks but don't define inheritance rules for maintenance schedules across location hierarchies.

D. asset service levels -
Service levels prioritize maintenance work but don't control how maintenance schedules are inherited through functional locations.

Reference:
Microsoft Learn: Functional location types and maintenance plan inheritance

A company uses Dynamics 365 Supply Chain Management. The company plans to add trucks to the existing truck fleet over the upcoming months.
The company requires truck drivers to complete a daily self-inspection of their trucks. The government requires that commercial trucks are inspected annually by a certified repair facility.
The fleet manager wants to minimize the amount of time the truck is in the shop.

• When a truck driver reports a problem during the daily inspection that requires a repair and is within a week of the annual inspection, the company requires that both events occur at the same time in the shop.
• The annual inspection can vary on due date for both new and existing trucks.

You must configure the requirements to minimize truck downtime.
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.




Explanation:
The scenario requires configuring maintenance for a truck fleet with daily driver inspections and annual certified inspections. When a repair is needed within a week of the annual inspection, both should occur simultaneously. Maintenance plans can be based on asset types with time intervals, and tolerance days allow scheduling flexibility to combine work orders.

Correct Options:

Requirement: Establish maintenance plan for all trucks | Configuration: Asset types, time
Using asset types with time-based maintenance allows a single maintenance plan to apply to all trucks regardless of individual variations. This ensures all trucks follow the same annual inspection schedule based on calendar time, accommodating new trucks added to the fleet over time.

Requirement: Ensure annual inspection is completed if it is due within a week of a reported maintenance issue | Configuration: Tolerance days
Tolerance days in maintenance plans allow scheduling flexibility around the exact due date. Setting tolerance days to at least 7 enables the system to schedule the annual inspection together with a repair work order if the inspection is due within the tolerance window, minimizing truck downtime.

Incorrect Options:

Asset types, counter - Counter-based maintenance relies on usage metrics like mileage, not appropriate for time-based annual inspections.

Individual asset, time/counter - These would require configuring separate maintenance plans for each truck, inefficient for fleet management.

Time fence - This defines planning horizons but doesn't provide scheduling flexibility around due dates.

Finish within days - This specifies completion targets but doesn't allow early scheduling of maintenance based on due date proximity.

Reference:
Microsoft Learn: Maintenance plans and tolerance days

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