Your customer completes four production orders on a daily basis. One of the production orders has quality problems on some finished-good items. The…

Oracle E-Business Suite Inventory provides Material Status Control to restrict specific transaction types on inventory based on quality or business rules. Enabling lot control for an item allows individual production lots to be uniquely identified. When quality defects are detected in a specific production lot, a Material Status that disallows sales order pick, issue, and shipping transactions can be assigned to that lot. This isolates the defective material logically in the system and strictly prevents it from being selected or processed during external customer order shipments. Assigning material status directly to the lot ensures system-enforced compliance across all inventory locations without relying solely on manual subinventory movements.

A: Moving a lot to an isolated subinventory without material status control does not systemically prevent users from picking or shipping from that subinventory. B: Defining a lot as rejected without applying transactional material status control does not programmatically block shipping transactions in Oracle Inventory. C: Locators define physical storage coordinates but do not inherently enforce transaction restrictions or prevent shipping unless combined with status control. E: Serial control tracks individual units, but simply storing serials in a separate subinventory does not prevent shipping unless status restrictions are enforced.

- Oracle Inventory User's Guide, Release 12.2, Part No. E48850-09, Chapter 6: "Transaction Setup - Material Status Control".

- Oracle Manufacturing Execution System for Process Manufacturing User's Guide, Release 12.2, Part No. E48935-06, Chapter 5: "Quality and Material Status".