Describe the core capabilities of the finance and operations apps →mediumMultiple 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 optimize inventory levels to reduce carrying costs while avoiding stockouts. They need a system that suggests replenishment quantities based on historical demand and lead times. Which feature should they use?
⚠ Common exam trap
A common mix-up: candidates confuse the operational function of procurement and sourcing with the planning function of master planning, assuming that purchasing activities inherently include demand-driven replenishment calculations.
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
✓
Master planning
Master planning in Dynamics 365 Supply Chain Management uses historical demand data, lead times, and on-hand inventory to calculate replenishment suggestions. It generates planned orders that optimize inventory levels, reducing carrying costs while preventing stockouts through time-phased requirements planning.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Bill of materials
Why it's wrong here
Bill of materials is for product structure.
- ✗
Inventory valuation
Why it's wrong here
Inventory valuation tracks costs, not replenishment.
- ✓
Master planning
Why this is correct
Master planning uses historical demand and lead times to suggest replenishment quantities.
- ✗
Procurement and sourcing
Why it's wrong here
Procurement and sourcing handles purchasing but not planning.
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