Describe the core capabilities of the finance and operations apps →easyMultiple 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 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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