MB-920 Describe Dynamics 365 Supply Chain Management Practice Question
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.
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.
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
Configure 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.
- ✗
Use the standard Inventory On-hand report and manually reserve stock per warehouse.
Why it's wrong here
Manual reservation per warehouse is not real-time and doesn't offer a unified dashboard.
- ✗
Implement Warehouse Management System (WMS) and use the wave execution to allocate stock.
Why it's wrong here
WMS wave execution is for physical warehouse operations, not for soft reservations across warehouses.
- ✗
Set up Product Information Management with transfer orders to move stock between warehouses.
Why it's wrong here
Transfer orders are for physical movement, not for soft reservation visibility.
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