The correct answer is to use batch disposition codes and set the reservation hierarchy to batch-above-location. This configuration works because batch disposition codes allow you to define rules that block expired inventory from being picked, effectively quarantining those batches, while the reservation hierarchy set to batch-above-location forces the system to prioritize the earliest expiration date when reserving inventory for a sales order, implementing the FEFO picking strategy. On the MB-920 exam, this question tests your understanding of how warehouse management and inventory processes intersect for perishable goods, often appearing as a scenario where you must distinguish between quality orders (used for inspections) and disposition codes (used for availability rules). A common trap is confusing batch disposition codes with quality orders, but remember: disposition codes control whether a batch is available for picking, while quality orders trigger a separate inspection workflow. Memory tip: think “Disposition blocks, Hierarchy picks” — disposition codes block expired stock, and the batch-above-location hierarchy ensures the earliest batch is picked first.
MB-920 Describe Dynamics 365 Supply Chain Management Practice Question
This MB-920 practice question tests your understanding of describe dynamics 365 supply chain management. This is a configuration task: choose the command set that satisfies every stated requirement. Small differences — like 'secret' vs 'password' or 'transport input ssh' vs 'all' — change whether the answer is correct. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
You are a system administrator for a food and beverage company using Dynamics 365 Supply Chain Management. The company produces perishable goods with expiration dates. They currently track inventory by batch, but they need to enforce a first-expiry-first-out (FEFO) picking strategy in their warehouse. When a sales order is picked, the system should automatically suggest the batch with the earliest expiration date. Additionally, if a batch has expired, the system should prevent it from being picked and should quarantine it. What configuration steps should you perform to meet these requirements?
Clue words in this question
Noticing these words before you look at the options changes how you read each choice.
Clue: "first"
Why it matters: Order matters here. You are being tested on which action comes before the others — not which action is generally useful.
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Use batch disposition codes and set the reservation hierarchy to batch-above-location.
Option D is correct because batch disposition codes allow you to define rules for inventory availability (e.g., block expired batches), and reservation hierarchy enables FEFO by setting the batch to be above location. Option A is wrong because quality orders are for inspections, not for FEFO picking. Option B is wrong because product flavors are not related to expiration date management. Option C is wrong while option D is correct because the correct approach is to use batch disposition codes to block expired inventory and reservation hierarchy to enforce FEFO.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
✓
Use batch disposition codes and set the reservation hierarchy to batch-above-location.
The clue word "first" in the question point toward this answer.
Related concept
Read the scenario before looking for a memorised answer.
✗
Set up product flavors to categorize batches by expiration date.
Why it's wrong here
Product flavors are for tracking product variants like size or color, not expiration dates.
✗
Create quality orders to inspect batches before picking.
Why it's wrong here
Quality orders are for inspections, not for enforcing FEFO or blocking expired batches automatically.
✗
Use batch disposition codes and set the reservation hierarchy to location-above-batch.
Why it's wrong here
Location-above-batch does not enforce FEFO; it prioritizes location over batch.
Common exam traps
Common exam trap: answer the scenario, not the keyword
Many certification questions include familiar terms but test a specific constraint. Read the exact wording before choosing an answer that is generally true but wrong for this case.
Detailed technical explanation
How to think about this question
This question should be treated as a scenario, not a definition check. Identify the problem, the constraint and the best action. Then compare each option against those facts.
KKey Concepts to Remember
Read the scenario before looking for a memorised answer.
Find the constraint that changes the correct option.
Eliminate answers that are true in general but not in this case.
Use explanations to understand the rule behind the answer.
TExam Day Tips
→Underline the problem statement mentally.
→Watch for words such as best, first, most likely and least administrative effort.
→Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
An e-commerce site experiences heavy traffic on Black Friday and near-zero traffic during off-peak weeks. Rather than provisioning permanent large VMs, the team uses auto-scaling groups that add capacity automatically under load and reduce it overnight. Questions like this test whether you understand elasticity, availability zones, and cloud compute scaling patterns.
What to study next
Got this wrong? Here's your next step.
Identify which MB-920 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
Describe Dynamics 365 Supply Chain Management — This question tests Describe Dynamics 365 Supply Chain Management — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Use batch disposition codes and set the reservation hierarchy to batch-above-location. — Option D is correct because batch disposition codes allow you to define rules for inventory availability (e.g., block expired batches), and reservation hierarchy enables FEFO by setting the batch to be above location. Option A is wrong because quality orders are for inspections, not for FEFO picking. Option B is wrong because product flavors are not related to expiration date management. Option C is wrong while option D is correct because the correct approach is to use batch disposition codes to block expired inventory and reservation hierarchy to enforce FEFO.
What should I do if I get this MB-920 question wrong?
Identify which MB-920 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
Are there clue words in this question I should notice?
Yes — watch for: "first". Order matters here. You are being tested on which action comes before the others — not which action is generally useful.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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