MB-920 Describe Dynamics 365 Supply Chain Management Practice Question
You are the supply chain consultant for a global electronics manufacturer that uses Dynamics 365 Supply Chain Management. The company procures components from multiple vendors and assembles finished goods in three factories: Berlin, Shanghai, and Monterrey. The current process requires planners to manually review demand and supply for each site and create purchase orders. The company wants to automate the generation of purchase requisitions based on forecasted demand and current inventory levels. Additionally, they need to ensure that the system respects vendor lead times and minimum order quantities. You propose using master planning to generate planned purchase orders. However, the procurement manager is concerned that planned orders might be created too frequently for low-demand items, causing an excessive number of small purchases. What should you configure to consolidate planned purchase orders for the same vendor within a defined time window?
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 purchase order consolidation in master planning parameters.
The 'Purchase order consolidation' feature in master planning parameters allows grouping planned purchase orders by vendor into a single purchase order within a defined time window, reducing the number of small orders. Option B is wrong because increasing safety stock levels ensures inventory availability but does not consolidate orders. Option C is wrong because action messages suggest changes to existing orders, such as expediting or delaying, not consolidation. Option D is wrong because a coverage time fence determines how far ahead the system plans, not how orders are consolidated.
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 purchase order consolidation in master planning parameters.
Why this is correct
Configure purchase order consolidation in master planning parameters. This feature groups planned orders by vendor into a single purchase order, respecting lead times and minimum order quantities.
- ✗
Increase safety stock levels for low-demand items.
Why it's wrong here
Increasing safety stock levels ensures inventory availability but does not consolidate orders; it may increase inventory costs.
- ✗
Enable action messages in master planning.
Why it's wrong here
Action messages suggest changes to existing orders (e.g., expedite, delay) but do not consolidate planned orders.
- ✗
Set a coverage time fence for each item.
Why it's wrong here
A coverage time fence determines the planning horizon, not consolidation of orders.
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