MB-920 Item coverage Practice Question
A company uses Dynamics 365 Supply Chain Management and wants to automate the generation of purchase orders when inventory falls below a certain level. Which feature should they use?
⚠ Common exam trap
The key trap is that candidates may confuse 'replenishment rules' (a warehouse feature) with 'item coverage and reorder points' (the master planning feature for automated procurement). In Dynamics 365 Supply Chain Management, the correct approach for automating purchase order generation based on inventory levels is through item coverage with a reorder point, not replenishment rules.
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
✓
Use item coverage with a reorder point.
In Dynamics 365 Supply Chain Management, item coverage settings with a defined reorder point allow the system to automatically generate planned purchase orders when inventory falls below the reorder point during master planning. This is the standard method for automated procurement based on inventory levels. Replenishment rules, on the other hand, are used for warehouse location replenishment, not direct purchase order generation.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Set up safety stock levels for the items.
Why it's wrong here
Setting safety stock levels establishes a buffer but does not automatically generate purchase orders; it only prevents stockouts during lead time.
- ✗
Configure replenishment rules with minimum and maximum inventory levels.
Why it's wrong here
Replenishment rules are used for internal warehouse location replenishment, not for automatically generating purchase orders from vendors.
- ✗
Create a recurring purchase order manually.
Why it's wrong here
Creating a recurring purchase order manually requires ongoing human intervention and is not an automated feature.
- ✓
Use item coverage with a reorder point.
Why this is correct
Using item coverage with a reorder point and enabling master planning automatically generates planned purchase orders when stock drops below the reorder point, automating procurement.
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