MB-920 Describe Dynamics 365 Supply Chain Management Practice Question
A distributor wants to ensure that when a sales order is created, the system automatically checks if the requested item is available in the warehouse. If the item is out of stock, the system should create a purchase order for the item. Which feature in Dynamics 365 Supply Chain Management supports this?
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
✓
Inventory management
(Inventory management) is correct because it includes replenishment features such as min/max and reorder point inventory planning that automatically generate purchase orders when stock levels fall below a threshold. Option B (Order promising) is incorrect because it calculates availability-to-promise (ATP) and capable-to-promise (CTP) dates but does not automatically create purchase orders. Option C (Production control) is incorrect as it manages manufacturing orders, not purchasing. Option D (Procurement and sourcing) is incorrect because although it handles purchase order processing, the automatic triggering is done by inventory management replenishment.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Inventory management
Why this is correct
Correct. Inventory management includes replenishment strategies (min/max, reorder point) that automatically create purchase orders when inventory is low.
- ✗
Order promising
Why it's wrong here
Incorrect. Order promising is used for availability checks and promise dates, not for automatic purchase order creation.
- ✗
Production control
Why it's wrong here
Incorrect. Production control manages production orders and manufacturing processes, not automatic purchasing.
- ✗
Procurement and sourcing
Why it's wrong here
Incorrect. Procurement and sourcing manages the purchase order lifecycle but does not automatically trigger purchase orders based on inventory levels; that is a replenishment function within inventory management.
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