MB-920 Describe Dynamics 365 Supply Chain Management Practice Question
You are a Dynamics 365 Supply Chain Management functional consultant for a food and beverage company. The company receives raw materials from multiple suppliers and needs to enforce quality inspections on all inbound shipments of dairy products. If a dairy shipment fails inspection, the entire lot must be quarantined and cannot be used in production. Additionally, the company wants to automatically generate purchase orders when the inventory level of a key ingredient falls below a reorder point. The inventory planner will review and approve the suggested orders before they are sent to suppliers. You need to configure the system to: (1) enforce quality inspections on inbound dairy products; (2) automatically quarantine failed lots; (3) generate purchase order suggestions based on reorder points. What should you do?
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 quality orders with a sampling plan for dairy products and set inventory status to 'Quarantine' on failure. Set up item coverage with a reorder point and run master planning to generate planned purchase orders.
To enforce quality inspections on inbound dairy products, you need to create quality orders with a sampling plan specific to dairy items. When a quality order fails, you can configure the inventory status to be updated to 'Quarantine', which blocks the lot from being used in production. For automatic purchase order generation based on reorder points, you set up item coverage for the key ingredient with a reorder point and run master planning. Master planning will generate planned purchase orders when the projected inventory falls below the reorder point. The inventory planner can then review and approve these planned orders before they are converted to actual purchase orders. Option B correctly combines quality orders with sampling and quarantine status for inspections, and item coverage with master planning for purchase order suggestions. Option A is incorrect because the safety stock journal does not automatically generate purchase orders based on reorder points; it is a manual adjustment. Option C uses vendor evaluation, which is not the correct tool for inbound quality inspections on specific items. Option D uses cycle counting, which is for inventory accuracy, not quality inspections.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Create a quality order for each inbound dairy shipment and configure a workflow to approve or reject. Use safety stock journal to create purchase orders when stock is low.
Why it's wrong here
Safety stock journal is manual, not automatic.
- ✓
Use quality orders with a sampling plan for dairy products and set inventory status to 'Quarantine' on failure. Set up item coverage with a reorder point and run master planning to generate planned purchase orders.
Why this is correct
Correct: quality orders for inspections, status for quarantine, and coverage for reorder.
- ✗
Set up vendor evaluation to inspect dairy suppliers and use inventory blocking to quarantine. Configure master planning with safety stock for automatic purchase orders.
Why it's wrong here
Vendor evaluation does not enforce inspections on each shipment.
- ✗
Create a cycle counting plan for dairy products and set up a quarantine zone in the warehouse. Configure item coverage with a min-max system for automatic purchase orders.
Why it's wrong here
Cycle counting is for inventory accuracy, not inbound inspections.
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