Configure Lean Subcontracting with Transfer Activities in Dynamics 365 SCM

MB-335 By islever Editorial Last updated

Implement subcontracting

Short answer

ACD Create a subcontractor resource group, create transfer activities for it, and assign the overflow work activity to the subcontractor.

Question

A company implements Dynamics 365 Supply Chain Management. Due to increased demand and limited space in the work cell area for product L0050, you must subcontract overflow work to another company. You have the following requirements: • Locate a warehouse at the subcontractor building. • Support picking and shipping activity tracking. • Associate costs of transporting materials between the locations in the cost of the finished product. You need to modify the production flow. Which three actions should you perform? Each correct answer presents part of the solution. NOTE: Each correct selection is worth one point.
  1. Create a resource and work cell resource group for the subcontractor. Correct Answer
  2. Modify the overflow work operation and associate it with the subcontractor.
  3. Create transfer activities and assign them to the subcontractor. Correct Answer
  4. Modify the overflow work activity and assign it to the subcontractor. Correct Answer
  5. Create a new production flow version.

Key Takeaways

Lean subcontracting uses production flows with activities; you model the subcontractor as a work cell resource group, add transfer activities for material movement, and assign the overflow activity (not the operation) to the subcontractor.

To subcontract overflow work to another company with a warehouse at the subcontractor, picking/shipping tracking, and transported-material cost, create a subcontractor resource group, create transfer activities assigned to the subcontractor, and modify the overflow work activity to assign it to the subcontractor.

Common mistake: Do not modify the overflow work operation and associate it with the subcontractor - in lean manufacturing the unit of work is the activity, not the operation. Also, creating a new production flow version is not required to subcontract the overflow activity.

Expert Analysis

Why the Answer Is Correct

The company needs to subcontract overflow work with a subcontractor warehouse, picking/shipping activity tracking, and transportation cost included in the finished product. In Dynamics 365 Supply Chain Management lean manufacturing, subcontracting is modeled through production flows. You create a resource and work cell resource group for the subcontractor (Option A) so the subcontractor is represented as a work cell. You create transfer activities and assign them to the subcontractor (Option C) to handle material movement to and from the subcontractor with activity tracking. You modify the overflow work activity and assign it to the subcontractor (Option D) so the actual overflow work is performed at the subcontractor. These three actions together meet all requirements.

Why the Other Options Are Wrong

  • Option B (modify the overflow work operation and associate it with the subcontractor) is incorrect because lean manufacturing uses activities, not operations; the work is represented by activities in the production flow.
  • Option E (create a new production flow version) is not necessary to subcontract the overflow activity; an existing production flow can be modified.

Community Comment Notes

Contributors cited the activity-based subcontracting documentation, noting that transfer activities are required for picking and shipping tracking and that the activity (not the operation) must be updated and assigned to the subcontractor.

Official Reference

https://learn.microsoft.com/en-us/dynamics365/supply-chain/production-control/activity-based-subcontracting

This link opens the official vendor documentation in a new tab.

Community Votes

ACD
50%
ACE
50%

50% of anonymous learners picked answer ACD. Votes are pick records left by other test-takers — they are not the verified answer.

Discussion 3 contributions

Compiled from public community threads and reader submissions, lightly edited for clarity. Handles and vote tallies are shown as recorded, and comments reflect the views of individual contributors.

From public community threads 3

  1. CCexamn 👍 3
    Shouldn't it be A, C, D. Since be mention operation and I think it is the activity that needs to be updated?
  2. Deetss 👍 1
    Agree with CCexamn. (C) We need to ensure that transfer activities are configured to meet picking & shipping activity tracking. https://learn.microsoft.com/en-us/dynamics365/supply-chain/production-control/activity-based-subcontracting#production-flows-that-involve-subcontractors Then (A) & (D), we need to create a resource and work cell resource group for subcontractor +modify the overflow work ACTIVITY and assign to subcontractor. https://learn.microsoft.com/en-us/dynamics365/supply-chain/production-control/activity-based-subcontracting#subcontracted-process-activities
  3. IlseKH 👍 1
    this would be the answer from the copilot :)

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