RE: Inventory Best Practices - Food and Agriculture
Lot tracking in GP is pretty powerful. I've implemented it before in a couple of different manufacturing environments. There's a nice feature that might be useful to you that allows you to track expiration dates. I don't have much experience with that specific feature, but I do believe that there's some logic behind it that helps prevent users from using lots that are expired (or near expiration). There are also a couple of inquiry windows and reports that help when there's a product recall.
The points at which you'll be required to enter lot numbers in a distribution environment are: order fulfillment (and returns), purchase receipts (and returns) as well as any transaction in inventory series.
Do you already have GP up and running? Or are you in the process of implementing it? Either way, I'd recommend involving your GP partner in this process.
I will warn you that it's a lot easier to turn on than it is to turn off, so if you've already got GP up and running I'd definitely turn it on for a few items in your test environment and see how it plays out. You should also consider how you're going to handle on-hand inventory of any item that you decide to lot track.