Automation of the transfer after quality fail is not possible. You can however create a manual transfer. 

Solution:

1) Duplicate scrap location and give it the name of your choosing (Use Case: Inspection)

2) Duplicate the Operation Type 'Internal Transfer' and as Source Location you put the location created above 'Inspections' & the destination location 'Scrap' (the standard scrap location)

ps. Make sure you change the code!

3) We have an MO that failed

4) Create a Scrap for the finished MO to sent the product to the Inspection Location

After inspecting the product you have two option: 

1. The product can not be consumed in the future and has to be scraped (go to scrap location)

We create a new transfer from the operation type we created:

2. You can recover the product for further use. So you want to sent it to stock again.

Here again you have two options:

1) Create a new Operation type 'Recover product' with source location: 'Inspection' and destination location: 'WH/Stock'

2) Use standard internal transfer and change the source location to 'Inspection'