MB-330 Microsoft Dynamics 365 Supply Chain Management Questions and Answers

Box 1: Standard

Standard conversions – Set up standard conversion rules for all products.

Box 2: Intra-class

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.

Intra-class conversions – Set up product-specific conversion rules for units in the same unit class. For example, you can set up a conversion rule for a product that converts a box to the number of pieces in a box. Pieces and boxes are both assigned to the Quantity unit class.

Incorrect:

Inter-class conversions – Set up product-specific conversion rules for units across unit classes. For example, you can set up a conversion rule for a product that converts kilograms to liters. Kilograms are assigned to the Mass unit class and liters are assigned to the Liquid volume unit class.

You specify the planning method in the Master planning run dialog box. To open this dialog box, go to Master planning > Master planning > Run > Master planning, or select Run in the Master planning workspace.

Regeneration

The regeneration planning method deletes existing planned orders, unless they are firmed. It generates new planned orders, based on all the requirements. Regeneration is the only planning method that is available for static plans.

Changes in supply are considered. These changes include changes in the forecast.

This method respects the Period coverage code.

This method supports product substitution functionality (PI).

Select DynPlan in the Master Plan field.

Select Regeneration in the Planning Method field.

Enter D0023 in the Item Number field.

Box 1: Price group

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.

Trade Agreement Logic

Before we go and set up a trade agreement let’s first discuss how the system evaluates trade agreements. When Dynamics 365 Finance and Operations evaluates trade agreements it tries to find the most specific pricing that falls within the validity dates. What I mean by “most specific” pricing is, the system checks the “Party type code” as well as the “Product code type” to see if there is a valid price specific to that customer or vendor for the specific product selected on the sales order or purchase order line respectively. Then if it cannot find that most specific combinations it looks for the next level up which are the price groups and then finally if it can’t find prices at the group level it looks for prices that may apply to all vendors or customers.

Box 2: Find next on trade agreement line for select customers only

The next trade agreement type is a line discount. As the name suggests a line discount will appear on the sales order line as a percentage discount or a per unit discount depending on how the trade agreement is set up.

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.

Predefined product variants

Example scenario: Create predefined product variants

This example scenario shows how to create product variants for a product master using a combinations of product dimensions.

Step 1: Create a product master

Step 2: Add product dimensions

Step 3: Generate product variants

To generate product variants:

With your new product master still open, select Product variants on the Action Pane.

Select Variant suggestions on the Action Pane.

The system generates a list with all possible combinations of the sizes and colors you defined for the product. Select Select all on the toolbar.

In this example, select all of the possible variants. If you only want to use a subset of the possible product dimension combinations, select only the required check boxes as needed.

Select Create.

Select Save.

Configure and process an exchange on a return order.

Note: Due to space constraints, school orders for photocopiers are shipped from the vendor to the school.

A school calls customer service to report that its photocopier is broken. The school needs expedited shipment of a replacement.

A: Commitment types

Each line in a purchase agreement is a commitment to buy something. You can use lines from multiple purchase orders (POs) to fulfill the commitment. There are four types of commitments:

Product quantity commitment – You purchase a specific quantity of a product.

Product value commitment – You purchase a specific currency amount of a product.

Product category value commitment – You purchase a specific currency amount in a procurement category. The amount can be for a catalog item or a non-catalog item.

Value commitment – You purchase a specific currency amount of any product or products in any procurement category.

Policies for purchase agreements

B: The following policies affect the way that the link between a purchase agreement commitment and the corresponding PO lines works:

Max is enforced – The total quantity or amount for all order lines can ' t exceed the quantity or amount that is specified on the related commitment.

Price and discount is fixed – The price on an order line and the price on the related commitment must be the same. If the price is changed on the order line, the link to the commitment is broken. If the link is broken, the order line doesn ' t contribute to the fulfillment of the commitment.

Minimum release amount and Maximum release amount – If an amount is specified, you receive a message if you make any change to an order line that causes the order line to differ from the related commitment.

Note: As whiteboard paint grows in popularity, so does the demand. This causes supply shortages. Whiteboard paint is ordered six months in advance.

Requirements. Customers and sales

(A) Schools must agree to the amount of whiteboard paint they will purchase for the whole school year.

(B) Sales of whiteboard paint must be limited so that one school does not buy all the inventory and force backorders for other schools.

Note: 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.

You can block inventory items in the following ways:

Manually

By creating a quality order

By using a process that generates a quality order

By using inventory status blocking

Note: Customers are categorized into four pricing tiers (A, B, C, and D) based on sales volume over the past 12 months.

Promotional fund and Trade allowance agreement

A trade allowance agreement is an incentive program where pay-for-performance monetary rewards are offered to customers that achieve specific volume targets and/or behavioral goals. Promotional funds are budgeted expenditures. In that way, the promotional campaigns can be captured.

Box 1: Product dimension

There are five product dimensions: color, configuration, size, style, and version.

Box 2: Product variant

Product variants are also referred to as items. An item is a tangible product, which isn ' t the same as a service.

A product variant can be generated based on the product dimension values.

Example

A company sells denim jeans. The item, Jeans, uses the color and size product dimensions. The jeans are sold in three different colors and six different sizes. The colors are blue, black, and brown. The sizes are XS, S, M, L, XL, and XXL. Not all sizes are available in all three colors. If all combinations were available, there would be 18 different types of jeans. However, in this example, only the following nine product variant combinations are produced.

Box 3: Tracking dimension

Scenario: 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.

One process the inbound processes from manufacturing.

Two outbound processed, one for nutritional supplements and one energy drinks.

Note: 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.

Box 1: Planned

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.

Planned costs

A costing version can contain a set of planned cost records about items and manufacturing processes. A costing version that contains planned costs is often used to support cost calculation simulations, such as simulations of the effect that cost changes to purchased materials or manufacturing processes has on the calculated costs of manufactured items. The item cost records for planned costs can also be used to support an actual cost inventory model by providing the initial values for item costs. These values include the calculation of planned costs for manufactured items.

Box 2: Standard

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.

Standard costs

A costing version can support a standard cost inventory model for items, where the costing version contains a set of standard cost records about items and manufacturing processes. Cost data about manufacturing processes is expressed in terms of the cost categories for routing operations and the calculation formulas for manufacturing overheads.

Box 1: Product

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.

Box 2: Product variant

Product masters and product variants

In an agile world, where products must be quickly adapted to customer requirements, product definitions specify a set of products instead of distinct products. In Supply Chain Management, those generic products are known as product masters. Product masters hold the definition and rules that specify how distinct products are described and behave in business processes. Based on these definitions, distinct products can be generated. These distinct products are known as product variants.

A product master is associated with a product dimension group and a configuration technology to specify the business rules. The product dimensions (Color, Size, Style, and Configuration) are a specific set of attributes that can be used throughout the application to define and track specific behaviors of the related products. These dimensions also help users search for and identify the products.