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Describe Dynamics 365 Supply Chain ManagementeasyMultiple ChoiceObjective-mapped

MB-920 Describe Dynamics 365 Supply Chain Management Practice Question

A company wants to use AI to predict potential stockouts and suggest replenishment actions. Which Dynamics 365 Supply Chain Management capability should they leverage?

⚠ Common exam trap

Test-takers frequently confuse 'demand forecasting' (which generates predictions) with 'master planning' (which uses those predictions to create supply orders), or they assume 'inventory optimization' includes demand prediction when it actually optimizes inventory levels based on existing forecasts.

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 data, seasonal patterns, and external factors to predict future demand. This capability directly addresses the need to predict potential stockouts and suggest replenishment actions by generating accurate demand predictions that feed into planning processes.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • Master planning

    Why it's wrong here

    Master planning generates planned orders but does not use AI for prediction.

  • Demand forecasting

    Why this is correct

    Demand forecasting uses AI to predict future demand and identify stockout risks.

  • IoT Intelligence

    Why it's wrong here

    IoT Intelligence is for real-time device data, not demand prediction.

  • Inventory optimization

    Why it's wrong here

    Inventory optimization is part of Dynamics 365 Intelligent Order Management, not core SCM.

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