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Describe Dynamics 365 Supply Chain ManagementhardMultiple ChoiceObjective-mapped

MB-920 Describe Dynamics 365 Supply Chain Management Practice Question

A global manufacturer uses Dynamics 365 Supply Chain Management. They need to configure a process that automatically generates purchase orders when inventory drops below a predefined level, based on real-time demand. Which feature should they use?

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

Reorder point planning

Reorder point planning creates purchase orders when stock hits a reorder point. Option A is incorrect because Vendor collaboration is for communication with suppliers, not for generating orders. Option B is incorrect because Master planning covers broader supply and demand planning, but reorder point planning is the specific feature for automated reordering based on predefined levels. Option C is incorrect because Demand forecasting predicts future demand but does not automatically generate purchase orders.

Answer analysis

Option-by-option breakdown

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

  • Vendor collaboration

    Why it's wrong here

    Vendor collaboration is for communication and cooperation with vendors, not for automatically generating purchase orders based on inventory levels.

  • Master planning

    Why it's wrong here

    Master planning is a broader process that includes various planning activities, but it does not automatically generate purchase orders solely triggered by stock dropping below a predefined level.

  • Demand forecasting

    Why it's wrong here

    Demand forecasting predicts future demand but does not automatically generate purchase orders.

  • Reorder point planning

    Why this is correct

    Reorder point planning creates purchase orders when inventory hits a predefined reorder point, making it the correct feature.

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Written by Johnson Ajibi, MSc IT Security

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This MB-920 practice question is part of Courseiva's free Microsoft certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the MB-920 exam.