MB-920 Describe Dynamics 365 Supply Chain Management Practice Question
This MB-920 practice question tests your understanding of describe dynamics 365 supply chain management. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
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?
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.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
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.
Related concept
Read the scenario before looking for a memorised answer.
✗
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.
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Consignment inventory
Why it's wrong here
Consignment inventory is for vendor-owned stock, not supplier-triggered replenishment.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse consignment inventory with vendor-managed inventory, but consignment focuses on ownership transfer at consumption, not on supplier-driven replenishment visibility.
Detailed technical explanation
How to think about this question
Vendor collaboration in Dynamics 365 is implemented through the Vendor portal, which uses Azure Active Directory for secure authentication and provides real-time access to inventory on-hand, demand forecasts, and purchase order status. The supplier can create replenishment proposals that are converted into purchase orders, enabling a seamless VMI workflow without manual intervention from the manufacturer.
KKey Concepts to Remember
Read the scenario before looking for a memorised answer.
Find the constraint that changes the correct option.
Eliminate answers that are true in general but not in this case.
TExam Day Tips
→Watch for words such as best, first, most likely and least administrative effort.
→Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
An e-commerce site experiences heavy traffic on Black Friday and near-zero traffic during off-peak weeks. Rather than provisioning permanent large VMs, the team uses auto-scaling groups that add capacity automatically under load and reduce it overnight. Questions like this test whether you understand elasticity, availability zones, and cloud compute scaling patterns.
What to study next
Got this wrong? Here's your next step.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Describe Dynamics 365 Supply Chain Management — This question tests Describe Dynamics 365 Supply Chain Management — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: 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.
What should I do if I get this MB-920 question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Question Discussion
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