- A
Configure the Inventory Visibility Service add-in and set up soft reservations using the Allocation API.
Option A is correct because it provides real-time multi-warehouse visibility and soft reservations.
- B
Implement Warehouse Management System (WMS) and use the wave execution to allocate stock.
Why wrong: Option C is incorrect because wave execution is for physical picking, not soft reservations.
- C
Use the standard Inventory On-hand report and manually reserve stock per warehouse.
Why wrong: Option B is incorrect because it lacks real-time visibility and automation.
- D
Set up Product Information Management with transfer orders to move stock between warehouses.
Why wrong: Option D is incorrect because transfer orders are for physical transfers, not soft reservation visibility.
MB-920 Describe Dynamics 365 Supply Chain Management Practice Question
This MB-920 practice question tests your understanding of describe dynamics 365 supply chain management. 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. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. 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.
You are the supply chain manager at a manufacturing company using Dynamics 365 Supply Chain Management. The company operates three warehouses: WH01 (finished goods), WH02 (raw materials), and WH03 (work-in-process). You need to configure inventory visibility for real-time demand planning. The company requires that inventory levels from all three warehouses be viewable in a single dashboard, with the ability to allocate stock to sales orders before physical pick. Additionally, you must ensure that the system can handle soft reservations across warehouses without impacting the physical inventory counts. You have the following options: A. Configure the Inventory Visibility Service add-in and set up soft reservations using the Allocation API. B. Use the standard Inventory On-hand report and manually reserve stock per warehouse. C. Implement Warehouse Management System (WMS) and use the wave execution to allocate stock. D. Set up Product Information Management with transfer orders to move stock between warehouses. 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
Configure the Inventory Visibility Service add-in and set up soft reservations using the Allocation API.
Option A is correct because the Inventory Visibility Service add-in provides real-time multi-warehouse visibility and supports soft reservations via the Allocation API, which does not affect physical inventory. Option B is incorrect because manual reservation per warehouse is not real-time and doesn't offer a unified dashboard. Option C is incorrect because WMS wave execution is for physical warehouse operations, not for soft reservations across warehouses. Option D is incorrect because transfer orders are for physical movement, not for soft reservation visibility.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
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 Inventory Visibility Service add-in and set up soft reservations using the Allocation API.
Why this is correct
Option A is correct because it provides real-time multi-warehouse visibility and soft reservations.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Implement Warehouse Management System (WMS) and use the wave execution to allocate stock.
Why it's wrong here
Option C is incorrect because wave execution is for physical picking, not soft reservations.
- ✗
Use the standard Inventory On-hand report and manually reserve stock per warehouse.
Why it's wrong here
Option B is incorrect because it lacks real-time visibility and automation.
- ✗
Set up Product Information Management with transfer orders to move stock between warehouses.
Why it's wrong here
Option D is incorrect because transfer orders are for physical transfers, not soft reservation visibility.
Common exam traps
Common exam trap: answer the scenario, not the keyword
Many certification questions include familiar terms but test a specific constraint. Read the exact wording before choosing an answer that is generally true but wrong for this case.
Detailed technical explanation
How to think about this question
This question should be treated as a scenario, not a definition check. Identify the problem, the constraint and the best action. Then compare each option against those facts.
KKey Concepts to Remember
- Read the scenario before looking for a memorised answer.
- Find the constraint that changes the correct option.
- Eliminate answers that are true in general but not in this case.
- Use explanations to understand the rule behind the answer.
TExam Day Tips
- Underline the problem statement mentally.
- 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
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
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. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. 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.
Identify which MB-920 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
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Describe Dynamics 365 Supply Chain Management — study guide chapter
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FAQ
Questions learners often ask
What does this MB-920 question test?
Describe Dynamics 365 Supply Chain Management — This question tests Describe Dynamics 365 Supply Chain Management — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Configure the Inventory Visibility Service add-in and set up soft reservations using the Allocation API. — Option A is correct because the Inventory Visibility Service add-in provides real-time multi-warehouse visibility and supports soft reservations via the Allocation API, which does not affect physical inventory. Option B is incorrect because manual reservation per warehouse is not real-time and doesn't offer a unified dashboard. Option C is incorrect because WMS wave execution is for physical warehouse operations, not for soft reservations across warehouses. Option D is incorrect because transfer orders are for physical movement, not for soft reservation visibility.
What should I do if I get this MB-920 question wrong?
Identify which MB-920 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
About these practice questions
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Last reviewed: Jun 21, 2026
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.
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