A B737-900 DEFERRED ITEM PLACARD WAS IMPROPERLY LOCATED; LEADING THE FLT CREW TO BELIEVE THE #1 IRS SHOULD NOT BE OPERATED.

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MEL34-45C ON FLT PAPERWORK WAS REVIEWED IN THE MEL AND XCHKED WITH MAINT LOG. THE MEL NUMBER ON THE DISPATCH RELEASE CORRELATED TO THE MEL BOOK. DUE TO LOCATION OF MEL PLACARD DIRECTLY BELOW #1 IRS SWITCH; I DETERMINED THAT THE #1 IRS SHOULD NOT BE PWRED. ALL SYS SEEMED TO WORK PROPERLY UNTIL AFTER TKOF WHEN MY PRIMARY FLT DIRECTOR DID NOT PRODUCE VERT GUIDANCE AND NEITHER AUTOPLT WOULD ENGAGE. THE QRH REF 11.5 WAS REFERRED TO; BUT IT DIDN'T FIT THE SITUATION (THERE WAS NO IRS FAULT LIGHT ILLUMINATED). ZZZ MAINT WAS CONTACTED AND THEY REFED QRH 11.5 AND ZZZ1 MAINT CTL. MAINT AND DISPATCH WERE BRIEFED OF SITUATION. ONCE THE ACFT HDG WAS MANUALLY ENTERED INTO THE FMC AND THE IRS MODE SWITCH PLACED TO NORMAL; THE AUTOPLT COULD BE ENGAGED AND THE FLT CONTINUED TO DEST UNEVENTFULLY. RELOCATE THE MEL PLACARD FOR THIS PARTICULAR MEL (34-45C) TO LOCATION THAT WOULD NOT LEAD A PLT TO LEAVE THE IRS OFF. ADDITIONALLY; WORDING COULD BE PLACED IN THE MEL TO INDICATE BOTH IRS MODE SELECT SWITCHES NEED TO BE IN THE NAV POS FOR PROPER FLT DIRECTOR AND AUTOPLT USE.