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 want to use AI to predict potential stockouts and suggest reorder quantities. Which feature should they enable?
⚠ Common exam trap
A common mix-up: candidates confuse Inventory Visibility's real-time stock data with predictive analytics, but it lacks the AI-based forecasting engine needed to predict future stockouts and suggest reorder quantities.
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
✓
Demand forecasting
Demand forecasting in Dynamics 365 Supply Chain Management uses AI and machine learning to analyze historical transaction data, predict future demand, and proactively identify potential stockouts. It also suggests optimal reorder quantities to maintain inventory levels, directly addressing the scenario's need for AI-driven stockout prediction and replenishment recommendations.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Product configuration
Why it's wrong here
Product configuration is for configured products, not demand forecasting.
- ✓
Demand forecasting
Why this is correct
Demand forecasting uses AI to predict demand and suggest reorder quantities.
- ✗
Inventory Visibility
Why it's wrong here
Inventory Visibility provides real-time inventory data, not predictions.
- ✗
Warehouse management
Why it's wrong here
Warehouse management handles warehouse operations, not demand prediction.
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