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Microsoft

MB-330 · Question #498

A company uses Dynamics 365 Supply Chain Management to manage its inventory. The company requires certain items to be categorized as high value with the tightest control and frequent reviews. The…

The correct answer is D. 20% of the items make up 80% of the revenue. In Dynamics 365 Supply Chain Management , categorizing items according to the Pareto Principle typically uses an ABC analysis, where the values are 20% of items making up 80% of the revenue. The principle is often observed as an 80/20 distribution, but the specific percentages…

Implement inventory management

Question

A company uses Dynamics 365 Supply Chain Management to manage its inventory. The company requires certain items to be categorized as high value with the tightest control and frequent reviews. The company will follow the recommended Pareto's Law Principle to categorize items. You need to categorize the A items. Which categorization should you use?

Options

  • A80% of the items make up 20% of the revenue
  • B80% of the items make up 80% of the revenue
  • C5% of the items make up 35% of the revenue
  • D20% of the items make up 80% of the revenue
  • E20% of the items make up 20% of the revenue

How the community answered

(45 responses)
  • A
    4% (2)
  • C
    2% (1)
  • D
    87% (39)
  • E
    7% (3)

Explanation

In Dynamics 365 Supply Chain Management , categorizing items according to the Pareto Principle typically uses an ABC analysis, where the values are 20% of items making up 80% of the revenue. The principle is often observed as an 80/20 distribution, but the specific percentages can vary in implementation. https://learn.microsoft.com/en-us/dynamics365/supply-chain/pim/tasks/classify-product-category-

Topics

#ABC classification#Pareto principle#inventory categorization#cycle counting

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