MB-330 Implement Inventory and Asset Management Practice Question
A company uses Dynamics 365 Supply Chain Management and has a policy that all items with a shelf life must be consumed in the order they expire, with the earliest expiration date first. They have set up batch attributes for expiration dates. Which reservation principle should they assign to the item's storage dimension group to enforce this?
⚠ Common exam trap
A common mix-up: candidates confuse FIFO with FEFO; FIFO uses receipt date, not expiration date, and therefore does not guarantee that the earliest expiring batch is used first.
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
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FEFO (First Expired, First Out)
FEFO (First Expired, First Out) is the reservation principle that reserves inventory based on the earliest expiration date. By assigning FEFO to the item's storage dimension group, the system will automatically prioritize batches that are closest to expiring, ensuring that shelf-life items are consumed in the correct order. This meets the company's policy and minimizes waste from expired goods.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
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LIFO (Last In, First Out)
Why it's wrong here
LIFO reserves the most recently received batches first, which is the opposite of what is needed. It does not consider expiration dates and would likely result in older stock expiring before use. This is not suitable for shelf-life management.
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FIFO (First In, First Out)
Why it's wrong here
FIFO reserves batches based on the date they were received, not their expiration date. While it can approximate FEFO when receipt dates align with expiration dates, it does not guarantee that the earliest expiring batch is picked first. This does not meet the requirement for expiration-based consumption.
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Batch number ascending
Why it's wrong here
Reserving by batch number ascending is an arbitrary order based on batch identifiers, not expiration dates. It does not guarantee that the earliest expiring batch is consumed first. This method is used for other purposes, such as sequential tracking, but not for expiration-based picking.
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FEFO (First Expired, First Out)
Why this is correct
FEFO reserves batches by expiration date, ensuring that the batch with the earliest expiration is picked first. This directly enforces the policy of consuming items in the order they expire. It is the correct reservation principle for shelf-life items.
About these practice questions
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JA
Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed September 2026 · checked against the official Microsoft exam blueprint
This MB-330 practice question is part of Courseiva's free Microsoft certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the MB-330 exam.