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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. The warehouse manager notices that a critical raw material is frequently out of stock, causing production delays. The planner wants to ensure that the material is reordered before stock hits zero. Which inventory planning feature should be configured to automatically generate replenishment orders based on forecasted demand and current inventory levels?

⚠ Common exam trap

Many exam-takers confuse cycle counting (a physical inventory check) with inventory planning, or think inventory adjustment journals can trigger automatic replenishment, when only master planning performs demand-driven order generation.

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 is the correct feature because it uses forecasted demand, current inventory levels, and lead times to automatically generate replenishment orders (purchase orders or transfer orders) before stock hits zero. This prevents stockouts by planning net requirements and creating planned orders that can be firmed into actual 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.

  • Master planning

    Why this is correct

    Master planning uses forecasts and current inventory to generate planned orders for replenishment.

  • Inventory adjustment journal

    Why it's wrong here

    Adjustment journals correct on-hand quantities but do not trigger replenishment.

  • Cycle counting

    Why it's wrong here

    Cycle counting is used to verify inventory accuracy, not to generate replenishment orders.

  • Quality order

    Why it's wrong here

    Quality orders are for inspecting items, not for replenishment planning.

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Written by Johnson Ajibi, MSc IT Security

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