Automating Inventory Tracking in Dynamics 365 Supply Chain Management

Automating Inventory Tracking in Dynamics 365 Supply Chain Management

Question

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 Chain Management.

You need to ensure that the company can track suppliers and determine when to purchase new inventory.

Which two features should you use? Each correct answer presents part of the solution.

NOTE: Each correct selection is worth one point.

Answers

Explanations

Click on the arrows to vote for the correct answer

A. B. C. D. E.

BE.

https://docs.microsoft.com/en-us/dynamics365/supply-chain/master-planning/planning-optimization/demand-forecast

To automate inventory tracking using Dynamics 365 Supply Chain Management, the company can utilize several features. Two of these features are:

A. Purchase policies: Purchase policies can be used to establish rules that govern how and when purchasing is done. These policies can be set up to determine the quantity of inventory to purchase based on demand, lead times, and order frequencies. The policies can also be configured to trigger purchase orders automatically when the inventory level falls below a certain threshold. This ensures that inventory levels are maintained at the desired level without manual intervention.

B. Master planning: Master planning is another feature that can be used to track inventory levels and automate the procurement process. It provides a unified view of the supply chain, including inventory levels, demand, and supply constraints. The system can then generate purchase orders, production orders, and transfer orders based on demand, inventory levels, and other factors. This ensures that the right quantity of inventory is available at the right time to meet customer demand.

C. Purchase agreements: Purchase agreements can be used to establish long-term contracts with suppliers. These contracts typically include negotiated pricing, delivery schedules, and other terms and conditions. By using purchase agreements, the company can ensure a stable supply of inventory and reduce procurement costs.

D. Purchase requisitions: Purchase requisitions are used to initiate the purchasing process. They can be created by anyone in the organization who needs to purchase goods or services. The requisition can then be reviewed and approved by authorized personnel before a purchase order is created. By using purchase requisitions, the company can ensure that all purchases are properly authorized and controlled.

E. Demand forecasting: Demand forecasting can be used to predict future demand for products. This information can be used to determine the optimal inventory levels, as well as to plan production and procurement activities. By using demand forecasting, the company can ensure that the right quantity of inventory is available to meet customer demand, while avoiding overstocking and unnecessary procurement costs.

In summary, to track suppliers and determine when to purchase new inventory, the company should use the purchase policies and master planning features in Dynamics 365 Supply Chain Management. These features can help automate the procurement process, ensure that inventory levels are maintained at the desired level, and reduce procurement costs. Additionally, purchase agreements, purchase requisitions, and demand forecasting can also be used to enhance the procurement process.