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MB-920 Practice Question: Describe the core capabilities of the finance and operations apps

A company uses Dynamics 365 Supply Chain Management. They need to automatically reorder inventory when stock falls below a certain level. Which feature should they use?

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 and replenishment

The reorder point and replenishment feature in Dynamics 365 Supply Chain Management automatically generates purchase orders or transfer orders when inventory falls below the defined reorder point. Option A is incorrect because inventory blocking is used to prevent stock from being used, not for automatic reordering. Option C is incorrect because cycle counting is a method to audit inventory accuracy, not to trigger replenishment. Option D is incorrect because safety stock levels define a minimum buffer but do not automatically create orders; they work in conjunction with reorder points.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • Inventory blocking

    Why it's wrong here

    Inventory blocking is used to hold stock for quality or other reasons, not for automatic reordering.

  • Reorder point and replenishment

    Why this is correct

    Reorder point and replenishment monitors inventory levels and automatically creates replenishment orders when stock hits the reorder point.

  • Cycle counting

    Why it's wrong here

    Cycle counting is a periodic inventory counting process to ensure accuracy, not a replenishment method.

  • Safety stock levels

    Why it's wrong here

    Safety stock levels provide a buffer but do not automatically generate purchase orders; they are used as a threshold in conjunction with reorder points.

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Written by Johnson Ajibi, MSc IT Security

Senior Network & Security Engineer · founder of Courseiva

This MB-920 practice question is part of Courseiva's free Microsoft certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the MB-920 exam.