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Describe Dynamics 365 Supply Chain ManagementmediumMultiple ChoiceObjective-mapped

MB-920 Describe Dynamics 365 Supply Chain Management Practice Question

A manufacturing company uses Dynamics 365 Supply Chain Management. They need to reduce inventory holding costs by optimizing reorder points. 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 in Master Planning calculates when to replenish inventory based on historical demand and lead times, directly optimizing reorder points to reduce holding costs. Option A is wrong because Vendor Managed Inventory is a supplier collaboration tool, not for internal reorder optimization. Option B is wrong because Inventory Visibility is a real-time inventory service, not a planning tool. Option D is wrong because Demand Forecasting predicts future demand but does not directly set reorder points.

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 Managed Inventory

    Why it's wrong here

    Vendor Managed Inventory is a supplier collaboration tool, not for internal reorder optimization.

  • Inventory Visibility

    Why it's wrong here

    Inventory Visibility provides real-time inventory data but does not calculate reorder points.

  • Reorder Point Planning

    Why this is correct

    Reorder Point Planning in Master Planning calculates when to replenish inventory based on historical demand and lead times, directly optimizing reorder points to reduce holding costs.

  • Demand Forecasting

    Why it's wrong here

    Demand Forecasting predicts future demand but does not directly set reorder points.

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