MB-920 Describe Dynamics 365 Supply Chain Management Practice Question
A manufacturer uses Dynamics 365 Supply Chain Management and wants to implement a vendor-managed inventory (VMI) process where suppliers monitor stock levels and trigger replenishment. Which feature should they enable?
⚠ Common exam trap
It's easy for candidates to confuse consignment inventory with vendor-managed inventory, but consignment focuses on ownership transfer at consumption, not on supplier-driven replenishment visibility.
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 collaboration
Vendor collaboration in Dynamics 365 Supply Chain Management enables suppliers to view inventory levels, demand forecasts, and purchase orders through a dedicated portal. This allows suppliers to monitor stock and trigger replenishment, which is the core requirement of a vendor-managed inventory (VMI) process.
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 this is correct
Vendor collaboration enables suppliers to monitor inventory and create replenishment orders.
- ✗
Purchase agreements
Why it's wrong here
Purchase agreements define pricing and terms, not the VMI process.
- ✗
Intercompany orders
Why it's wrong here
Intercompany orders are for transactions between legal entities, not external vendors.
- ✗
Consignment inventory
Why it's wrong here
Consignment inventory is for vendor-owned stock, not supplier-triggered replenishment.
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