Exam MB-700 topic 1 question 85 discussion

Actual exam question from Microsoft's MB-700

Question #: 85
Topic #: 1

A third-party logistics company is implementing Dynamics 365 Finance and Dynamics 365 Supply Chain Management. The company values inventory using the first in, first out (FIFO) costing method.

Customer consignment inventory is held in the warehouse. The same inventory item number may also be owned by the company.

You need to define a solution for segregating customer-consigned inventory.

A. Implement service type items.
B. Implement inventory status.
C. Implement vendor consignment inventory.
D. Create a separate warehouse location.
E. Create a virtual site and warehouse.

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Suggested Answer: C 🗳️

by a709105 at May 15, 2025, 11:35 a.m.

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a709105

3 months ago

Selected Answer: E

The correct answer is: E. Create a virtual site and warehouse. Explanation: The scenario involves customer consignment inventory that is physically stored in the same warehouse but owned by the customer, while the same item number can also be company-owned. Therefore, a key requirement is ownership segregation, not just tracking or categorization.

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