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Describe Dynamics 365 Supply Chain ManagementhardMultiple ChoiceObjective-mapped

MB-920 Describe Dynamics 365 Supply Chain Management Practice Question

A company uses Dynamics 365 Supply Chain Management and wants to automate the replenishment of items from a central warehouse to regional distribution centers based on real-time sales data. Which concept should they use?

⚠ Common exam trap

Candidates often confuse transfer orders (a manual execution tool) with the automated replenishment strategy that triggers them, leading them to select Option B instead of recognizing that replenishment strategies are the underlying logic.

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

Replenishment strategies (e.g., min/max)

Replenishment strategies such as min/max are designed to automate inventory replenishment based on predefined thresholds and real-time demand signals. In Dynamics 365 Supply Chain Management, these strategies calculate when stock at a regional distribution center falls below a minimum level and automatically generate replenishment orders from the central warehouse, making them the correct choice for this scenario.

Answer analysis

Option-by-option breakdown

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

  • Replenishment strategies (e.g., min/max)

    Why this is correct

    Replenishment strategies like min/max automatically create transfer orders based on stock levels and demand.

  • Transfer orders

    Why it's wrong here

    Transfer orders are manual and do not automatically trigger based on real-time sales.

  • Bill of materials

    Why it's wrong here

    Bill of materials defines product components, not replenishment logic.

  • Kanban signals

    Why it's wrong here

    Kanban is used for production pull signals, not warehouse replenishment.

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Written by Johnson Ajibi, MSc IT Security

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