MB-920 Describe Dynamics 365 Supply Chain Management Practice Question
A company uses Dynamics 365 Supply Chain Management and wants to implement a strategy where products are stored at multiple warehouse locations, but picking is optimized by consolidating orders from the nearest location to the customer. Which configuration supports this?
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
✓
Set up multi-site warehouse management and use location directives
Multi-site warehouse management with location directives allows routing of picking to the nearest warehouse based on distance or zone. Option A is correct because location directives can be configured to prioritize picking from the warehouse closest to the customer's ship-to address. Option B (Vendor-managed inventory) is a supplier strategy, not internal optimization. Option C (Transfer orders) moves stock between warehouses but does not automatically optimize picking across sites. Option D (Single warehouse with multiple zones) stores products within one physical location and cannot consolidate orders across different sites.
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 multi-site warehouse management and use location directives
Why this is correct
Location directives can route picking to the nearest warehouse.
- ✗
Implement vendor-managed inventory for all products
Why it's wrong here
Vendor-managed inventory is a supplier arrangement.
- ✗
Use transfer orders to move stock between warehouses
Why it's wrong here
Transfer orders move stock but do not optimize picking across sites.
- ✗
Configure a single warehouse with multiple zones
Why it's wrong here
Zones are within one warehouse, not multiple sites.
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