MB-920 Describe Dynamics 365 Supply Chain Management Practice Question
A manufacturing company uses Dynamics 365 Supply Chain Management. They want to improve inventory accuracy and reduce stockouts. Which TWO actions should they take?
⚠ Common exam trap
Many candidates 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.
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
✓
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.
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.
- ✗
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.
- ✗
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.
Go deeper
Related to this question
About these practice questions
One of 930 original MB-920 practice questions on Courseiva, each with a full explanation and wrong-answer analysis — not exam dumps or protected exam content. Learn why practice questions differ from exam dumps →
JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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.