MB-920 Describe Dynamics 365 Supply Chain Management Practice Question
A company wants to use Dynamics 365 Supply Chain Management to automate replenishment of raw materials from suppliers based on current inventory levels. Which feature should they configure?
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
✓
Vendor-managed inventory (VMI)
Vendor-managed inventory (VMI) allows suppliers to manage inventory levels. Purchase agreements set terms but don't automate replenishment. Intercompany orders handle transfers between subsidiaries. Consignment is a financial ownership model, not automation.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Intercompany orders
Why it's wrong here
Intercompany orders are for internal transfers.
- ✗
Consignment inventory
Why it's wrong here
Consignment is about ownership, not replenishment automation.
- ✗
Purchase agreements
Why it's wrong here
Purchase agreements define terms but do not automate replenishment.
- ✓
Vendor-managed inventory (VMI)
Why this is correct
VMI enables supplier-managed automated replenishment.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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