MB-330 Implement Inventory and Asset Management Practice Question
A company uses Dynamics 365 Supply Chain Management with warehouse management. They need to track items by batch number and ensure that when items are picked for sales orders, the system automatically selects batches based on expiry dates. The warehouse manager wants to configure reservation so that the earliest expiring batches are picked first. Which batch reservation strategy should you set up?
⚠ Common exam trap
The trap here is assuming FIFO is sufficient for expiry-based picking; FIFO uses receipt date, not expiry date, so it may not pick the earliest expiring 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
✓
FEFO (First Expired, First Out)
FEFO is the correct batch reservation strategy because it automatically selects batches with the earliest expiration dates, ensuring that perishable or time-sensitive items are picked first. Other strategies like FIFO or LIFO do not consider expiry dates, and manual reservation lacks automation.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
FEFO (First Expired, First Out)
Why this is correct
FEFO reserves batches based on their expiration date, ensuring that the batches closest to expiry are picked first. This directly aligns with the requirement to automatically select batches by expiry date. In Dynamics 365 Supply Chain Management, FEFO is configured as a batch reservation strategy at the item level or through warehouse policies.
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Manual reservation
Why it's wrong here
Manual reservation requires users to select batches manually during picking or reservation. This does not automatically select batches by expiry date and relies on human intervention, which is error-prone and does not meet the requirement for automatic selection based on expiry.
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LIFO (Last In, First Out)
Why it's wrong here
LIFO reserves batches based on the most recently received items first. This is the opposite of what is needed because it would pick newer batches before older ones, potentially leading to expired inventory. LIFO is typically used for cost accounting purposes, not for physical picking based on expiry.
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FIFO (First In, First Out)
Why it's wrong here
FIFO reserves batches based on the date they were received into inventory, not by expiry date. While it can help rotate stock, it does not guarantee that the earliest expiring batches are picked first, especially if items have different shelf lives. Therefore, it does not meet the requirement to pick by expiry date.
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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
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