Microsoft Dynamics 365 Fundamentals Practice Exam

Which method is recommended for managing purchase orders at different intervals throughout the production process in D365 Supply Chain Management?

1. Master Planning

2. Real-time Inventory Tracking

3. Order Management System

4. Just-in-Time Inventory

The correct answer is: Master Planning

Master Planning is the recommended method for managing purchase orders at different intervals throughout the production process in Dynamics 365 Supply Chain Management because it provides a comprehensive approach to forecasting and managing inventory levels based on demand. This method allows organizations to effectively schedule production, manage supply and demand, and optimize inventory levels, which is crucial for maintaining efficiency and minimizing costs in the supply chain. With Master Planning, businesses can run simulations and review various scenarios to ensure they have the right materials on hand at the right time. It takes into account lead times, safety stock requirements, and demand forecasts, allowing for better order management and alignment with production needs. This consolidated view of planning ensures that purchasing decisions are made based on accurate data and projections. In contrast, methods like Just-in-Time Inventory focus primarily on reducing inventory levels and holding costs, while real-time inventory tracking provides immediate insights into stock levels but may not support broader planning needs. An Order Management System is closely linked to sales order processing, which may not offer the comprehensive management of purchasing across the entire production cycle that Master Planning provides. Therefore, Master Planning is clearly the most strategic solution for managing purchase orders effectively across multiple timeframes in the production process.