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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