MB-920 Describe Dynamics 365 Supply Chain Management Practice Question
A company uses Dynamics 365 Supply Chain Management. They have multiple vendors supplying the same raw material. The procurement manager wants to automatically allocate purchase orders to the vendor with the best combination of price, lead time, and quality rating. Which feature should they use?
⚠ Common exam trap
Candidates often confuse Request for quotation (RFQ) with automated vendor selection, but RFQ only collects bids and requires manual scoring, whereas Vendor bid analysis provides the automated allocation engine based on predefined scoring criteria.
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
✓
Vendor bid analysis
Vendor bid analysis in Dynamics 365 Supply Chain Management allows procurement managers to automatically evaluate and compare vendor proposals based on price, lead time, and quality rating. It uses scoring rules to rank bids and can automatically allocate purchase orders to the vendor with the best overall score, enabling data-driven vendor selection without manual intervention.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Purchase agreements
Why it's wrong here
Purchase agreements set terms but do not automatically allocate based on multiple criteria.
- ✓
Vendor bid analysis
Why this is correct
Vendor bid analysis allows scoring vendors based on price, lead time, and quality to automatically allocate orders.
- ✗
Request for quotation
Why it's wrong here
RFQ manages quotes but requires manual selection.
- ✗
Vendor collaboration
Why it's wrong here
Vendor collaboration is for sharing information, not automatic allocation.
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