MB-920 Describe Dynamics 365 Supply Chain Management Practice Question
A company uses Dynamics 365 Supply Chain Management to manage inventory. They want to automatically reduce the quantity of a component when a finished product is reported as finished. 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
✓
Production BOM explosion
The Production BOM explosion automatically creates picking lists and reduces raw material inventory when a finished product is reported as finished. Option A is correct. Option B (Purchase order approval) is unrelated to inventory reduction during production. Option C (Production routes) defines the sequence of operations but does not automatically reduce component quantities. Option D (Warehouse locations) defines storage locations but does not automatically reduce inventory during production.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Production BOM explosion
Why this is correct
The Production BOM explosion automatically creates picking lists and reduces raw material inventory when a finished product is reported as finished.
- ✗
Purchase order approval
Why it's wrong here
Purchase order approval is unrelated to inventory reduction during production.
- ✗
Production routes
Why it's wrong here
Production routes define the sequence of operations and work centers but do not automatically reduce component quantities.
- ✗
Warehouse locations
Why it's wrong here
Warehouse locations define storage areas but do not automatically reduce inventory during production.
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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.