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 often drop below safety stock, causing production delays. Which feature should be configured to automatically generate purchase orders when inventory falls below the reorder point?
⚠ Common exam trap
Test-takers frequently confuse warehouse management's replenishment of picking locations (which is internal movement) with the broader supply replenishment that generates purchase orders from vendors.
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
✓
Replenishment strategies
Replenishment strategies in Dynamics 365 Supply Chain Management allow the system to automatically generate purchase orders when inventory levels fall below the defined reorder point. This ensures that raw material stock is replenished proactively, preventing production delays caused by stockouts.
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 it's wrong here
Vendor collaboration is used for external communication, not automatic PO generation.
- ✓
Replenishment strategies
Why this is correct
Replenishment strategies can automate purchase order creation based on reorder points.
- ✗
Warehouse management
Why it's wrong here
Warehouse management handles storage and picking, not procurement.
- ✗
Inventory blocking
Why it's wrong here
Inventory blocking is for quality or regulatory holds, not replenishment.
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