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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