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Describe Dynamics 365 Supply Chain ManagementmediumMultiple ChoiceObjective-mapped

MB-920 Describe Dynamics 365 Supply Chain Management Practice Question

A company uses Dynamics 365 Supply Chain Management and wants to automatically reorder stock when inventory falls below a defined level. Which functionality should be configured?

Answer choices

Why each option matters

Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.

Correct answer & explanation

Reorder point

The Reorder point functionality triggers purchase orders automatically when inventory falls below a defined level. Option A is incorrect because Cycle counting is an inventory accuracy process, not for replenishment. Option B is incorrect because Inventory aging is for valuation analysis, not for automatic reordering. Option D is incorrect because Safety stock is a buffer quantity but does not automatically create orders; it is used in conjunction with reorder points or other replenishment methods.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • Cycle counting

    Why it's wrong here

    Cycle counting is used for inventory accuracy, not replenishment.

  • Inventory aging

    Why it's wrong here

    Inventory aging is for valuation, not replenishment.

  • Reorder point

    Why this is correct

    Reorder point automatically generates purchase orders when inventory falls below the reorder point.

  • Safety stock

    Why it's wrong here

    Safety stock is a minimum level but does not automatically generate purchase orders.

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Written by Johnson Ajibi, MSc IT Security

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