MB-920 Describe Dynamics 365 Supply Chain Management Practice Question
This MB-920 practice question tests your understanding of describe dynamics 365 supply chain management. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
A manufacturing company uses Dynamics 365 Supply Chain Management. They want to improve inventory accuracy and reduce stockouts. Which TWO actions should they take?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Use cycle counting to regularly verify inventory.
Cycle counting (A) is a continuous inventory verification method that allows frequent, focused counts of specific items without disrupting operations. This directly improves inventory accuracy by identifying and correcting discrepancies in real time, which helps prevent stockouts by ensuring system records match physical stock. Setting safety stock levels (C) provides a buffer of inventory for critical items, reducing the risk of stockouts during demand fluctuations or supply delays.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
✓
Use cycle counting to regularly verify inventory.
Why this is correct
Cycle counting improves accuracy by checking a subset of items frequently.
Related concept
Read the scenario before looking for a memorised answer.
✗
Implement ABC classification for all items.
Why it's wrong here
ABC classification helps prioritize but does not directly reduce stockouts.
✓
Set safety stock levels for critical items.
Why this is correct
Safety stock buffers against demand spikes and supply delays.
Related concept
Read the scenario before looking for a memorised answer.
✗
Enable sales forecasting for all products.
Why it's wrong here
Forecasting helps planning but does not directly ensure accuracy.
✗
Conduct annual physical inventory counts.
Why it's wrong here
Annual counts are too infrequent to prevent stockouts.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse ABC classification (a prioritization tool) with a direct accuracy or stockout prevention action, or they assume annual physical counts are sufficient for accuracy, overlooking the need for continuous verification methods like cycle counting.
Detailed technical explanation
How to think about this question
Cycle counting in Dynamics 365 Supply Chain Management can be configured using counting thresholds, counting plans, and user-defined criteria (e.g., count items with negative on-hand or zero on-hand). The system supports real-time integration with warehouse management processes, allowing counts to be triggered automatically based on item movement or time intervals. Safety stock levels are defined in the item coverage settings and can be dynamically adjusted using the Replenishment strategy, which integrates with master planning to generate replenishment orders when inventory falls below the safety stock threshold.
KKey Concepts to Remember
Read the scenario before looking for a memorised answer.
Find the constraint that changes the correct option.
Eliminate answers that are true in general but not in this case.
TExam Day Tips
→Watch for words such as best, first, most likely and least administrative effort.
→Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A cloud solutions architect for a retail company is evaluating services for a new workload. The correct answer here reflects best practice for the specific scenario described — not a general cloud recommendation. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Cloud exam questions reward reading the constraint carefully: the same technology can be right or wrong depending on the use case.
What to study next
Got this wrong? Here's your next step.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Describe Dynamics 365 Supply Chain Management — This question tests Describe Dynamics 365 Supply Chain Management — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Use cycle counting to regularly verify inventory. — Cycle counting (A) is a continuous inventory verification method that allows frequent, focused counts of specific items without disrupting operations. This directly improves inventory accuracy by identifying and correcting discrepancies in real time, which helps prevent stockouts by ensuring system records match physical stock. Setting safety stock levels (C) provides a buffer of inventory for critical items, reducing the risk of stockouts during demand fluctuations or supply delays.
What should I do if I get this MB-920 question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
About these practice questions
Courseiva creates original exam-style practice questions with explanations and wrong-answer analysis. It does not publish real exam questions, exam dumps, or protected exam content. Learn why practice questions differ from exam dumps →
Share a tip, memory trick, or ask about the reasoning behind this question. Do not post real exam questions, leaked content, braindumps, or copyrighted exam material. Comments are moderated and may be removed without notice.
This MB-920 practice question is part of Courseiva's free Microsoft certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the MB-920 exam.
Question Discussion
Share a tip, memory trick, or ask about the reasoning behind this question. Do not post real exam questions, leaked content, braindumps, or copyrighted exam material. Comments are moderated and may be removed without notice.
Sign in to join the discussion.