- A
Picking list
Why wrong: Picking list is a document used for warehouse operations, not for automatic allocation based on priority.
- B
Inventory reservation hierarchy
Why wrong: Inventory reservation hierarchy defines the order of dimension reservation (site, warehouse, location), not allocation based on customer priority. Customer priority is not an inventory dimension.
- C
Batch balancing
Why wrong: Batch balancing is used for production processes to balance batches, not for allocating inventory to sales orders based on priority.
- D
ATP (Available to Promise)
ATP calculates available quantities and can be integrated with customer priority codes and allocation methods to automatically allocate inventory to high-priority customers.
Question 640 of 966
Describe the core capabilities of the finance and operations apps →hardMultiple ChoiceObjective-mapped
Inventory Reservation Hierarchy
This MB-920 practice question tests your understanding of describe the core capabilities of the finance and operations apps. This is a configuration task: choose the command set that satisfies every stated requirement. Small differences — like 'secret' vs 'password' or 'transport input ssh' vs 'all' — change whether the answer is correct. A key principle to apply: available to Promise (ATP). 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 distribution company uses Dynamics 365 Supply Chain Management. They need to automatically allocate inventory to sales orders based on customer priority. What feature should they configure?
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
✓
ATP (Available to Promise)
Available to Promise (ATP) in Dynamics 365 Supply Chain Management calculates the quantity of inventory that can be promised to new orders based on existing demand, supply, and lead times. By setting customer priority codes and using allocation methods, the system can automatically allocate ATP quantities to higher-priority customers first, ensuring inventory is allocated according to business rules.
Key principle: Available to Promise (ATP)
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Picking list
Why it's wrong here
Picking list is a document used for warehouse operations, not for automatic allocation based on priority.
- ✗
Inventory reservation hierarchy
Why it's wrong here
Inventory reservation hierarchy defines the order of dimension reservation (site, warehouse, location), not allocation based on customer priority. Customer priority is not an inventory dimension.
- ✗
Batch balancing
Why it's wrong here
Batch balancing is used for production processes to balance batches, not for allocating inventory to sales orders based on priority.
- ✓
ATP (Available to Promise)
Why this is correct
ATP calculates available quantities and can be integrated with customer priority codes and allocation methods to automatically allocate inventory to high-priority customers.
Related concept
Available to Promise (ATP)
Common exam traps
Common exam trap: answer the scenario, not the keyword
Candidates often confuse ATP as merely a calculation for promise dates, but it can also drive allocation decisions when combined with priority codes and allocation methods.
Detailed technical explanation
How to think about this question
The inventory reservation hierarchy is configured in the 'Inventory and warehouse management' module and can include dimensions such as customer, site, warehouse, and location. When a sales order is created, the system uses this hierarchy to determine the sequence of reservation, allowing customer priority to override other dimensions. In a real-world scenario, a distribution company with tiered customers (e.g., gold, silver, bronze) can set the hierarchy so that gold customers' orders are reserved from the most accessible inventory before lower-tier customers, even if the inventory is physically located in the same warehouse.
KKey Concepts to Remember
- Available to Promise (ATP)
- Customer Priority Codes
- Allocation Methods
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
Available to Promise (ATP)
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. Available to Promise (ATP) 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.
Review available to Promise (ATP), then practise related MB-920 questions on the same topic to reinforce the concept.
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Describe the core capabilities of the finance and operations apps — study guide chapter
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FAQ
Questions learners often ask
What does this MB-920 question test?
Describe the core capabilities of the finance and operations apps — This question tests Describe the core capabilities of the finance and operations apps — Available to Promise (ATP).
What is the correct answer to this question?
The correct answer is: ATP (Available to Promise) — Available to Promise (ATP) in Dynamics 365 Supply Chain Management calculates the quantity of inventory that can be promised to new orders based on existing demand, supply, and lead times. By setting customer priority codes and using allocation methods, the system can automatically allocate ATP quantities to higher-priority customers first, ensuring inventory is allocated according to business rules.
What should I do if I get this MB-920 question wrong?
Review available to Promise (ATP), then practise related MB-920 questions on the same topic to reinforce the concept.
What is the key concept behind this question?
Available to Promise (ATP)
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Last reviewed: Jul 4, 2026
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