MB-920 Describe Dynamics 365 Supply Chain Management Practice Question
A manufacturing company uses Dynamics 365 Supply Chain Management. The production manager notices that raw material inventory levels frequently drop below the reorder point, causing production delays. Which feature should be configured to automatically suggest purchase orders based on demand and current inventory levels?
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
✓
Master planning
Master planning in Dynamics 365 Supply Chain Management calculates material and capacity requirements based on demand and automatically generates planned purchase orders to maintain optimal inventory levels. Option A (Landed cost) is used to manage costs associated with importing goods, not for automatic replenishment. Option B (Warehouse management) focuses on warehouse operations like receiving, picking, and shipping, not on planning purchase orders. Option C (Inventory Visibility) provides real-time inventory visibility but does not automatically suggest 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.
- ✗
Landed cost
Why it's wrong here
Inventory Visibility provides real-time inventory visibility but does not automatically suggest purchase orders.
- ✗
Warehouse management
Why it's wrong here
Warehouse management handles warehouse operations such as receiving, picking, and shipping, not replenishment planning.
- ✗
Inventory Visibility
Why it's wrong here
Landed cost is used to manage costs associated with importing goods, not for automatic replenishment.
- ✓
Master planning
Why this is correct
Master planning calculates material requirements based on demand and inventory and generates planned purchase orders.
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