MB-920 Describe Dynamics 365 Supply Chain Management Practice Question
A retail company uses Dynamics 365 Supply Chain Management to manage its supply chain. The company has many stores that replenish inventory from a central distribution center. The company wants to use demand-driven replenishment to automatically generate purchase orders for the distribution center based on sales forecasts and current inventory levels. The company uses the Master Planning module. You need to configure the system to generate planned purchase orders for the distribution center. You have the following options: A. Set up a coverage group for the distribution center with the coverage code 'Min/Max' and run Master Planning. B. Set up intercompany orders between the stores and the distribution center. C. Use the Demand forecasting module to generate forecasts and manually create purchase orders. D. Configure the Product master with a reorder point and use inventory journals to create purchase orders. Which option should you choose?
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
✓
Set up a coverage group for the distribution center with the coverage code 'Min/Max' and run Master Planning.
Setting up a coverage group for the distribution center with the coverage code 'Min/Max' and running Master Planning allows the system to automatically generate planned purchase orders based on minimum and maximum inventory levels, supporting demand-driven replenishment. Option A is incorrect because configuring the product master with a reorder point and using inventory journals requires manual intervention. Option B is incorrect because the Demand forecasting module generates forecasts but still requires manual creation of purchase orders. Option D is incorrect because intercompany orders are for transactions between legal entities, not for replenishment planning.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Configure the Product master with a reorder point and use inventory journals to create purchase orders.
Why it's wrong here
Incorrect. Configuring the product master with a reorder point and using inventory journals requires manual creation of purchase orders, not automatic generation.
- ✗
Use the Demand forecasting module to generate forecasts and manually create purchase orders.
Why it's wrong here
Incorrect. Using the Demand forecasting module to generate forecasts still requires manually creating purchase orders, not automatic generation.
- ✓
Set up a coverage group for the distribution center with the coverage code 'Min/Max' and run Master Planning.
Why this is correct
Correct. Setting up a coverage group with Min/Max coverage code and running Master Planning automatically generates planned purchase orders based on demand-driven replenishment.
- ✗
Set up intercompany orders between the stores and the distribution center.
Why it's wrong here
Incorrect. Intercompany orders are used for transactions between legal entities, not for automatic replenishment planning within the same company.
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