Describe the core capabilities of the finance and operations apps →hardMultiple ChoiceObjective-mapped
MB-920 Practice Question: Describe the core capabilities of the finance and operations apps
A company uses Dynamics 365 Supply Chain Management. They are experiencing delays in production because the system does not automatically order raw materials when inventory drops below a certain level. Which master planning parameter should be configured to address 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
✓
Reorder point
The reorder point (Option D) is the correct parameter to configure for automatic ordering when inventory drops below a certain level. In Dynamics 365 Supply Chain Management, the reorder point defines a minimum inventory level that triggers a planned order for replenishment. Coverage groups (Option A) define planning parameters for groups of items but do not directly trigger automatic ordering. Safety stock (Option B) is a buffer level to protect against uncertainty but does not initiate orders. Forecast (Option C) is used for demand estimation, not for automatic replenishment.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
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Coverage group
Why it's wrong here
Coverage groups define planning parameters for groups of items, but they do not directly trigger automatic ordering when inventory drops below a level. The specific parameter for automatic ordering is the reorder point.
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Safety stock
Why it's wrong here
Safety stock is a buffer quantity held to protect against demand variability or supply disruptions, but it does not automatically trigger orders.
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Forecast
Why it's wrong here
Forecast is used for demand estimation and planning, not for automatic ordering based on inventory levels.
- ✓
Reorder point
Why this is correct
The reorder point defines a minimum inventory level; when inventory drops below this level, the system generates a planned order to replenish stock, addressing the issue of delays due to lack of automatic ordering.
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