MB-920 Batch disposition codes Practice Question
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?
⚠ Common exam trap
Candidates often confuse the reservation hierarchy direction. Batch-above-location is required for FEFO, not location-above-batch.
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
✓
Use batch disposition codes and set the reservation hierarchy to batch-above-location.
Batch disposition codes are used to control inventory availability by blocking expired batches, and setting the reservation hierarchy to batch-above-location ensures that the system reserves batches with the earliest expiration date first (FEFO). Option D is incorrect because location-above-batch prioritizes location over batch, which does not enforce FEFO.
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.
Why this is correct
Batch disposition codes can block expired batches; reservation hierarchy batch-above-location enables FEFO picking.
- ✗
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.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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