MB-920 Reorder point Practice Question
A company wants to automatically create purchase orders when inventory for a specific item drops below a predefined level. Which master planning concept should be used?
⚠ Common exam trap
Candidates often confuse safety stock with reorder point, thinking safety stock triggers replenishment, but in Dynamics 365 Supply Chain Management, the reorder point is the trigger.
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
In Dynamics 365 Supply Chain Management, the reorder point concept is used to automatically trigger purchase orders when inventory drops below a predefined level. The reorder point is a specific inventory level that signals the need for replenishment. Master planning monitors inventory levels and generates planned purchase orders when the reorder point is reached. Safety stock, on the other hand, is an additional buffer quantity meant to protect against stockouts due to variability, not the primary trigger for replenishment. Coverage groups define planning parameters like time fences and replenishment strategies, but not the specific trigger level. Forecast models are used for demand forecasting, not for inventory replenishment triggers.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Safety stock
Why it's wrong here
Safety stock is an additional buffer quantity, not the trigger for automatic purchase orders. The trigger is the reorder point.
- ✗
Coverage group
Why it's wrong here
Coverage group defines planning parameters like time fences and replenishment methods, but not the specific inventory level that triggers replenishment.
- ✗
Forecast model
Why it's wrong here
Forecast model is used for demand forecasting, not for triggering purchase orders based on inventory levels.
- ✓
Reorder point
Why this is correct
Correct. Reorder point is the predefined inventory level that triggers master planning to generate purchase orders for replenishment.
Go deeper
Related to this question
About these practice questions
One of 930 original MB-920 practice questions on Courseiva, each with a full explanation and wrong-answer analysis — not exam dumps or protected exam content. Learn why practice questions differ from exam dumps →
JA
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.