Drag and Drop Question A company is implementing Dynamics 365 Supply Chain Management. The company has a history of incorrect inventory valuation reporting due to non-existence of a proper cycle…

The correct answer is Blind cycle counting; Spot cycle counting. Dynamics 365 SCM Cycle Counting - Explanation > Note: The question as presented omits the actual use case descriptions (only the answer arrangement is shown). Based on the standard Microsoft exam format (MB-330), the typical use cases are reconstructed below. --- Cycle Counting…

Implement inventory management

Question

Drag and Drop Question A company is implementing Dynamics 365 Supply Chain Management. The company has a history of incorrect inventory valuation reporting due to non-existence of a proper cycle counting policy. You need to select the type of cycle counting to perform for each use case. Which cycle counting types should you perform? To answer, drag the appropriate cycle counting types to the correct use cases. Each cycle counting type may be used once, more than once, or not at all. You may need to drag the split bar between panes or scroll to view content. NOTE: Each correct selection is worth one point. Answer:

Exhibit

Answer Area

Drag items

Blind cycle countingSpot cycle counting

Correct arrangement

Blind cycle counting
Spot cycle counting

Explanation

Dynamics 365 SCM Cycle Counting - Explanation

Note: The question as presented omits the actual use case descriptions (only the answer arrangement is shown). Based on the standard Microsoft exam format (MB-330), the typical use cases are reconstructed below.

Cycle Counting Types Defined

Blind Cycle Counting

Workers count inventory without being shown the system's expected on-hand quantity. The "Display item count" setting on the mobile device menu item is set to No. This eliminates anchoring bias - counters record what they physically see, not what the system expects.

Spot Cycle Counting

An ad-hoc, immediate, unscheduled count triggered for a specific item or location, typically when a discrepancy is suspected or discovered. It is not part of a recurring plan.

Why Items Go in This Arrangement

Position	Use Case (typical exam framing)	Answer	Reason
1	Workers should count items without knowing the expected quantity, to avoid influencing the count	Blind cycle counting	Hiding the on-hand figure is precisely what "blind" means - it ensures unbiased physical verification
2	A manager suspects a discrepancy and needs to count a specific item immediately	Spot cycle counting	Spot counting is the ad-hoc mechanism for targeted, on-demand counts outside the normal cycle plan

Technical Reasoning Per Placement

Blind cycle counting (Position 1)

Configured via the mobile device menu item → set Display item count = No
Forces workers to record actual physical quantity independently of system data
Directly addresses the company's problem of incorrect inventory valuation by removing the bias that causes workers to match system numbers rather than count honestly
Best for routine, scheduled counts where data integrity is the priority

Spot cycle counting (Position 2)

Triggered on demand from within Dynamics 365 SCM (Inventory Management > Cycle counting > Spot cycle counting)
No schedule required - reactive to a specific event or suspicion
Counts only the targeted item/location, not a broader plan
Best when something flags a potential discrepancy mid-operation

Common Mistakes and Misconceptions

Confusing "blind" with "no process" - Blind counting is a structured, scheduled count; it only removes the quantity display. It is not informal.
Assuming spot counting is "blind" - Spot counting may or may not hide the on-hand quantity depending on configuration; "spot" refers to timing and scope (ad-hoc, targeted), not visibility of data.
Thinking spot counting replaces cycle counting plans - Spot counting supplements your cycle plan; it does not replace periodic scheduled counts.
Overlooking the root cause fit - The scenario explicitly mentions incorrect valuation due to no proper cycle counting policy. Blind cycle counting is the answer to the policy gap (systematic, unbiased scheduled counts), while spot counting addresses the reactive gap (immediate investigation of suspected errors).

Topics

#cycle counting#inventory accuracy#inventory valuation#counting policy

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