MB-920 Describe Dynamics 365 Supply Chain Management Practice Question
A company uses Dynamics 365 Supply Chain Management. They need to ensure that a specific item is always sourced from a preferred vendor, even if another vendor has a lower price. Which configuration should be used?
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
✓
Purchase trade agreements
Purchase trade agreements allow you to define specific sourcing rules for items, including a preferred vendor relationship. This ensures that a particular item is always sourced from the designated vendor regardless of price. Option A (Vendor allocation rules) is used to distribute purchase quantities among multiple vendors, not to force a single preferred vendor. Option B (Product dimension groups) define product variants, not sourcing preferences. Option C (Inventory status codes) control inventory availability and transaction types, not vendor selection.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Vendor allocation rules
Why it's wrong here
Allocation rules distribute demand among vendors, not enforce preference.
- ✗
Product dimension groups
Why it's wrong here
Dimension groups define tracking dimensions, not sourcing.
- ✗
Inventory status codes
Why it's wrong here
Status codes control inventory availability, not sourcing.
- ✓
Purchase trade agreements
Why this is correct
Trade agreements can set a preferred vendor and price.
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