MB-920 Describe Dynamics 365 Supply Chain Management Practice Question
A company uses Dynamics 365 Supply Chain Management with advanced warehouse management. They need to enforce strict FIFO (first in, first out) picking for perishable goods. Which configuration ensures that the oldest inventory is picked first?
⚠ Common exam trap
Candidates often confuse work template sequencing (Option B) or location profiles (Option C) with the actual inventory reservation logic, not realizing that FIFO enforcement requires a reservation hierarchy dimension order, not just a sorting or location-based rule.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Configure a reservation hierarchy with expiration date as the primary dimension
Configuring a reservation hierarchy with expiration date as the primary dimension ensures that the system prioritizes inventory based on the oldest expiration date first. In Dynamics 365 Supply Chain Management with advanced warehouse management, the reservation hierarchy defines the order in which dimensions (e.g., location, license plate, expiration date) are considered during reservation and picking. By placing expiration date at the top, the system automatically enforces FIFO for perishable goods, picking the oldest stock first.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Configure a reservation hierarchy with expiration date as the primary dimension
Why this is correct
Reservation hierarchies can prioritize oldest inventory for FIFO.
- ✗
Adjust the work template to order by location
Why it's wrong here
Work templates sequence work but not by inventory age.
- ✗
Set up location profiles with strict picking order
Why it's wrong here
Location profiles control storage, not picking order by age.
- ✗
Modify the mobile device menu item for picking
Why it's wrong here
Mobile device menu items define user interface, not picking priority.
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