Describe the core capabilities of the finance and operations apps →hardMultiple ChoiceObjective-mapped
MB-920 Practice Question: Describe the core capabilities of the finance and operations apps
An organization uses Dynamics 365 Supply Chain Management. They have a requirement to automatically generate purchase orders when inventory for a specific item falls below a defined level, but only if the item is not already on order. Which method should they use?
⚠ Common exam trap
Candidates often confuse vendor collaboration or self-service portals with automated replenishment, but those features handle external vendor interaction, not the internal planning logic that triggers purchase orders based on inventory thresholds.
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
✓
Configure coverage groups and item coverage settings with a reorder point and Min/Max coverage code
Dynamics 365 Supply Chain Management uses coverage groups and item coverage settings to automate replenishment. By configuring a reorder point with a Min/Max coverage code, the system generates purchase orders when inventory falls below the defined level, but only if the item is not already on order, as the system checks existing open orders before creating new ones.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Implement the vendor self-service portal for purchase order creation
Why it's wrong here
Vendor self-service portal allows vendors to view and confirm orders, not generate them.
- ✗
Set up vendor collaboration to allow vendors to manage inventory replenishment
Why it's wrong here
Vendor collaboration does not automatically generate purchase orders.
- ✓
Configure coverage groups and item coverage settings with a reorder point and Min/Max coverage code
Why this is correct
This triggers master planning to generate planned purchase orders when stock falls below reorder point.
- ✗
Create a procurement catalog and enable automatic requisition approval
Why it's wrong here
Procurement catalogs are for internal order placement, not automatic generation.
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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.