MB-920 Describe Dynamics 365 Supply Chain Management Practice Question
A distribution company uses Dynamics 365 Supply Chain Management to manage its supply chain. Recently, the company has been facing issues with late deliveries to customers. The root cause analysis shows that the planning department is not accurately accounting for lead times from suppliers. The company wants to improve the accuracy of purchase order delivery dates. You need to configure the system to automatically calculate purchase order delivery dates based on vendor lead times and calendar exceptions. The company uses the Master Planning module for supply planning. You have the following options: A. Configure the Warehouse Management module to use the shipment consolidation functionality to adjust delivery dates. B. Manually adjust delivery dates on each purchase order based on phone calls with vendors. C. Use the Procurement and Sourcing module to create blanket purchase agreements that override lead times. D. Set up vendor lead times in the Vendor master and configure the purchase lead time field in the Product master. Then run Master Planning to generate planned purchase orders with correct delivery dates. Which option should you choose?
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
✓
Set up vendor lead times in the Vendor master and configure the purchase lead time field in the Product master. Then run Master Planning to generate planned purchase orders with correct delivery dates.
Vendor lead times and product lead times are used by Master Planning to calculate delivery dates automatically. By setting up vendor lead times in the Vendor master and configuring the purchase lead time field in the Product master, Master Planning can generate planned purchase orders with accurate delivery dates based on lead times and calendar exceptions. Option A is incorrect because shipment consolidation in Warehouse Management is for outbound shipments, not for purchase order lead times. Option B is incorrect because manual adjustments are error-prone and not scalable. Option C is incorrect because blanket purchase agreements are for pricing and terms, not for lead time calculation.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Configure the Warehouse Management module to use the shipment consolidation functionality to adjust delivery dates.
Why it's wrong here
Configuring the Warehouse Management module to use shipment consolidation is for outbound shipments, not for purchase order lead times. This option is incorrect.
- ✗
Manually adjust delivery dates on each purchase order based on phone calls with vendors.
Why it's wrong here
Manually adjusting delivery dates is error-prone and not scalable. This option is incorrect.
- ✗
Use the Procurement and Sourcing module to create blanket purchase agreements that override lead times.
Why it's wrong here
Using blanket purchase agreements is for pricing and terms, not for lead time calculation. This option is incorrect.
- ✓
Set up vendor lead times in the Vendor master and configure the purchase lead time field in the Product master. Then run Master Planning to generate planned purchase orders with correct delivery dates.
Why this is correct
Setting up vendor lead times in Vendor master and purchase lead time in Product master allows Master Planning to automatically calculate purchase order delivery dates based on lead times and calendar exceptions. This option is correct.
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