MB-330 Implement Inventory and Asset Management Practice Question
A warehouse manager needs to ensure that when a sales order is picked, the system automatically suggests the oldest batch for items with shelf-life requirements. The company uses batch numbers with expiration dates. Which reservation principle should you configure on the item model group to achieve this?
⚠ Common exam trap
Many candidates confuse FIFO with FEFO; FIFO uses receipt date, while FEFO uses expiration date.
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 automatically suggests the batch with the earliest expiration date. Configuring FEFO on the item model group ensures that when sales orders are picked, the system prioritizes batches that expire soonest, reducing waste and ensuring customer safety. FIFO, LIFO, and manual reservation do not consider expiration dates and therefore do not satisfy the requirement.
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 inventory based on the most recent receipt date, which would suggest the newest batch first. This is the opposite of what the warehouse manager needs, as it would leave older batches to expire. LIFO is generally used for cost accounting purposes and is not suitable for shelf-life management.
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FEFO (First Expired, First Out)
Why this is correct
FEFO reserves inventory based on the expiration date of the batch, ensuring that the batch with the earliest expiration date is picked first. This directly meets the requirement to automatically suggest the oldest batch for shelf-life items. FEFO is configured on the item model group and is commonly used in industries such as food and pharmaceuticals where expiration dates are critical.
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FIFO (First In, First Out)
Why it's wrong here
FIFO reserves inventory based on the physical receipt date of the batch, not the expiration date. While it can help move older stock, it does not guarantee that the batch closest to expiration is picked first. For items with shelf-life requirements, the manager specifically wants to avoid expired stock, so FIFO may not be sufficient if a later-received batch has an earlier expiration date.
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Manual reservation
Why it's wrong here
Manual reservation requires a user to explicitly select the batch for each sales order line. This does not automate the suggestion of the oldest batch based on expiration date, and it relies on the user's knowledge. It does not meet the requirement for automatic suggestion based on shelf-life, and it is inefficient for high-volume operations.
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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.