MB-700 · Question #65
A company produces automotive components. The company uses Microsoft Excel to track the quantity of parts on hand. The company wants to automate processes to track inventory using Dynamics 365 Supply
The correct answer is A. Demand forecasting B. Master planning. Demand forecasting (A) analyzes historical consumption data to predict future inventory needs, helping the company know when stock levels will fall and new purchases are required. Master planning (B) uses those forecasts along with current on-hand quantities, lead times, and reor
Question
Options
- ADemand forecasting
- BMaster planning
- CPurchase requisitions
- DPurchase agreements
- EPurchase policies
How the community answered
(26 responses)- A77% (20)
- C12% (3)
- D8% (2)
- E4% (1)
Explanation
Demand forecasting (A) analyzes historical consumption data to predict future inventory needs, helping the company know when stock levels will fall and new purchases are required. Master planning (B) uses those forecasts along with current on-hand quantities, lead times, and reorder points to automatically calculate and suggest when and how much to purchase. Together, they form a closed loop: forecasting predicts need, master planning acts on it. Purchase requisitions (C) are internal purchase requests raised manually - they don't automate the 'when to buy' decision. Purchase agreements (D) are vendor contracts for pricing/terms, not inventory tracking triggers. Purchase policies (E) govern approval rules for purchases but do not determine reorder timing.
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