MB-920 Describe Dynamics 365 Supply Chain Management Practice Question
A company uses Dynamics 365 Supply Chain Management for warehouse operations. The warehouse manager wants to improve inventory accuracy and reduce the time spent on physical inventory counts. Which TWO actions should the manager take?
⚠ Common exam trap
Many exam-takers confuse cycle counting with full physical inventory counts or think that increasing safety stock is a valid inventory accuracy technique, when in fact it only addresses stock availability, not accuracy.
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
✓
Implement cycle counting based on ABC classification.
Cycle counting based on ABC classification allows the warehouse to count high-value or fast-moving items (A items) more frequently than low-value or slow-moving items (C items). This targeted approach improves inventory accuracy without the disruption of full physical counts, and Dynamics 365 Supply Chain Management supports ABC classification directly in the cycle counting setup.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Implement cycle counting based on ABC classification.
Why this is correct
Cycle counting allows frequent counts of high-value items without stopping operations.
- ✓
Deploy handheld scanners to record inventory movements.
Why this is correct
Handheld scanners reduce manual entry errors and provide real-time inventory updates.
- ✗
Increase safety stock levels for fast-moving items.
Why it's wrong here
Safety stock does not improve inventory accuracy; it only buffers against demand variability.
- ✗
Schedule full inventory counts at the end of each month.
Why it's wrong here
Full counts are disruptive and time-consuming, not efficient for improving accuracy over time.
- ✗
Require daily counting of all inventory items.
Why it's wrong here
Daily counting of all items is not feasible and would disrupt operations.
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