MB-920 Describe Dynamics 365 Supply Chain Management Practice Question
A retail company uses Dynamics 365 Supply Chain Management to manage inventory across multiple stores. They want to ensure that stock levels at stores are automatically replenished from the central warehouse when inventory drops below a defined threshold. Which planning method should they configure?
⚠ Common exam trap
Many candidates confuse safety stock as a planning method, but it is actually a parameter used within replenishment or master planning, not a method that automatically triggers replenishment orders.
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 (min/max)
Replenishment (min/max) is the correct planning method because it automatically triggers replenishment orders from the central warehouse when inventory at a store falls below a defined minimum threshold, and it stops when stock reaches the maximum level. This method is specifically designed for location-based inventory replenishment in Dynamics 365 Supply Chain Management, ensuring that stores maintain optimal stock without manual intervention.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Inventory aging
Why it's wrong here
Inventory aging tracks shelf life, not replenishment.
- ✓
Replenishment (min/max)
Why this is correct
Min/max replenishment automatically generates orders when stock falls below the minimum level.
- ✗
Demand forecasting
Why it's wrong here
Demand forecasting predicts future demand but does not automatically trigger replenishment.
- ✗
Safety stock
Why it's wrong here
Safety stock is a minimum level but requires manual or automatic replenishment rules to trigger orders.
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