MB-920 Describe Dynamics 365 Supply Chain Management Practice Question
A distribution company uses Dynamics 365 Supply Chain Management and needs to set up a consignment inventory process where the supplier owns the inventory until it is consumed. Which inventory model should be used?
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
✓
Consignment inventory
Consignment inventory is specifically designed for inventory owned by the supplier until use. Option A is for standard purchase orders. Option B is for customer returns. Option C is for products that are not stocked.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Purchase order
Why it's wrong here
Purchase order transfers ownership at receipt, not consignment.
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Return order
Why it's wrong here
Return order is for returning goods to a vendor.
- ✗
Non-stocked product
Why it's wrong here
Non-stocked products are not inventoried.
- ✓
Consignment inventory
Why this is correct
Consignment inventory allows supplier-owned stock at the customer site until consumption.
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