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MB-920 Practice Question: A company uses Dynamics 365 Supply Chain…
A company uses Dynamics 365 Supply Chain Management. The warehouse manager reports that inventory counts are consistently inaccurate. Which feature should be used to improve inventory accuracy?
⚠ Common exam trap
It's easy for candidates to confuse operational warehouse processes (picking, receiving, location directives) with inventory control features, assuming any warehouse activity can improve accuracy, when only cycle counting is specifically designed for ongoing validation and correction of inventory records.
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
✓
Cycle counting
Cycle counting is a periodic inventory auditing process where a subset of items is counted on a regular schedule, allowing discrepancies to be identified and corrected without a full physical inventory. In Dynamics 365 Supply Chain Management, cycle counting helps maintain accurate on-hand inventory by systematically validating counts against system records, which directly addresses the warehouse manager's issue of consistently inaccurate counts.
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 this is correct
Regular counts improve accuracy.
- ✗
Picking
Why it's wrong here
Outbound process.
- ✗
Receiving
Why it's wrong here
Inbound process.
- ✗
Location directives
Why it's wrong here
Guides putaway/picking.
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