Oracle Ebs R12- Part 1

50 Questions

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Oracle Quizzes & Trivia

Inventory and Order Management Fundamentals


Questions and Answers
  • 1. 
    The Check ATP option is enabled for an item in the Finished Goods subinventory. Which action will occur?
    • A. 

      Check the quantity requested against forecast.

    • B. 

      Generate a requisition for the requested quantity.

    • C. 

      Permit order booking based on a successful test.

    • D. 

      Check the quantity requested against safety stock.

    • E. 

      Check the quantity requested against Economic Order Quantity(EOQ).

  • 2. 
    The client requires that cycle counts are entered by the warehouse staff. However, only the warehouse manager can schedule counts, generate count requests, and approve the counts that are out of tolerance. What should you consider when setting up the cycle counting process? (Choose three. )
    • A. 

      The frequency of the recounts required

    • B. 

      The number of automatic recounts required

    • C. 

      The tolerance level for automatic adjustment

    • D. 

      Modify the workday calendar used by the warehouse

    • E. 

      The responsibility that has access to the Approve Counts function

    • F. 

      The number of serial and/or lot controlled items included in the count

  • 3. 
    Company Z has two sites. Both sites are inventory organizations. One is in Colorado, the other is in New Jersey. Inventory is expected to travel between the two, in both directions. The following requirements are identical for the two organizations: a) Ownership transfer occurs upon ship confirm. b) There is a two-step receiving process. c) Only approved orders would be performed. Which setups in Shipping Networks meet these criteria?
    • A. 

      Transit Type = Direct, FOB = Receipt, Receipt Routing = Direct, Internal Order Required = checked

    • B. 

      Transit Type = Intransit, FOB = Receipt, Receipt Routing = Direct, Internal Order Required =unchecked

    • C. 

      Transit Type = Intransit, FOB = Receipt, Receipt Routing = Standard, Internal Order Required =checked

    • D. 

      Transit Type = Direct, FOB = Shipment, Receipt Routing = Standard, Internal Order Required =checked

    • E. 

      Transit Type = Intransit, FOB = Shipment, Receipt Routing = Inspection, Internal Order Required =checked

  • 4. 
    Each UOM class must have a base unit specified. Which represents a base unit for the UOM Class Quantity?
    • A. 

      One

    • B. 

      Each

    • C. 

      Case

    • D. 

      Gross

    • E. 

      Dozen

  • 5. 
    A user informs you about the inability to create a requisition using category 110.33. The Purchasing category structure is set up as Item Category Commodity. The user has described the problem as follows: “I am able to select 110 for the item category and 33 for the commodity, but when I click OK I receive an error.” Identify two reasons for the error. (Choose two.)
    • A. 

      The commodity 33 has been deactivated.

    • B. 

      The item category 110 has been deactivated.

    • C. 

      The category 110.33 is not assigned to a buyer.

    • D. 

      Category 110.33 is not set up in the categories form.

    • E. 

      110.33 is not assigned to the Purchasing category set.

    • F. 

      110.33 has not been added to the appropriate value set.

  • 6. 
    XYZ is a chemical manufacturing company. On a daily basis, it produces 100 kilos of Item A from a single production batcH. 100 kilos of item A manufactured from a single batch has a single expiration datE. However, the purity of item A varies as follows: Category 1: 95% Category 2: 85% Category 3: 50% From an implementation perspective, which setup or process would meet this requirement?
    • A. 

      Enable lot control. Map three categories as coproducts.

    • B. 

      Enable lot control for item A. Create three lots to represent the categories.

    • C. 

      Enable lot control for item A. Create three child lots and link them with the parent lot.

    • D. 

      Enable lot and grade control for item A. Have three categories mapped with grades.

    • E. 

      Enable lot and serial control for item A. Create one lot and three categories that are mapped with serial numbers.

  • 7. 
    For which type of move order is approval required?
    • A. 

      Planning Move Order

    • B. 

      Shipping Move Order

    • C. 

      Production Move Order

    • D. 

      Requisition Move Order

    • E. 

      Replenishment Move Order

  • 8. 
    Identify four functions that a user can perform using the Material Workbence. (Choose four)
    • A. 

      Create move orders.

    • B. 

      Create and save queries.

    • C. 

      Change material statuses.

    • D. 

      Perform miscellaneous issues.

    • E. 

      Perform miscellaneous receipts.

    • F. 

      Perform pick confirm transactions.

    • G. 

      Perform ship confirm transactions

    • H. 

      View material in receiving, on-hand quantities, and intransit material.

  • 9. 
    The client has decided that Quality and Discrete Manufacturing will be implemented at a future stage, so new supply from current manufacturing will be added to current inventory on hand by the Open Transactions Interface. The immediate requirement is to go-live with Inventory and Order Management. Which three seeded transaction types can be omitted for material status control? (Choose three. )
    • A. 

      Average cost update

    • B. 

      All internal transactions

    • C. 

      Backflush subinventory transfer

    • D. 

      Miscellaneous issues and receipts

    • E. 

      All transaction types related to Work in Process

    • F. 

      All transaction types related to Project Manufacturing

  • 10. 
    ACME attempts the Pick Release process for delivery lines that have been booked. Which three options are valid? (Choose three )
    • A. 

      Run the Auto Allocate process.

    • B. 

      Run the Pick Slip Grouping process.

    • C. 

      Run the Interface Trip Stop process.

    • D. 

      Use the Standard Report Submission process (SRS).

    • E. 

      Execute Online from the Release Sales Order window.

    • F. 

      Run a concurrent program from the Release Sales Order window.

  • 11. 
    PTO Kits consist of _____.
    • A. 

      A standard BOM

    • B. 

      A configurable BOM

    • C. 

      A standard BOM with mandatory included options

    • D. 

      A configurable BOM with mandatory included options

    • E. 

      An engineering BOM with mandatory included options

  • 12. 
    Identify the four statements related to the MOAC functionality. (Choose four.)
    • A. 

      When querying any transaction, one must specify the operating unit.

    • B. 

      The Operating Unit field is a display-only field for all the transaction forms.

    • C. 

      While entering a transaction, the Operating Unit needs to be selected in case the user wants an Operating Unit other than the default.

    • D. 

      While querying for a transaction, entering the Operating Unit helps the application to query lesser number of transactions and results in better performance.

    • E. 

      A new Operating Unit field has been added to all the forms that allow the user to view and manage Sales Orders and Returns across multiple operating units.

    • F. 

      A new Operating Unit field has been added to all the forms that allow the user to view and manage Sales Agreements and Quotes across multiple operating units.

  • 13. 
    Weight and physical dimensions are examples of ____.
    • A. 

      An item attribute

    • B. 

      An item parameter

    • C. 

      An item profile option

    • D. 

      An item master characteristic

  • 14. 
    Identify three correct statements regarding customer acceptance setups. (Choose three. )
    • A. 

      Customer acceptance can be enabled at the inventory organization level.

    • B. 

      For enabling customer acceptance, no setup is required in OM.

    • C. 

      Customer acceptance can be enabled at the OM operating-unit level.

    • D. 

      Define assignment rules for deferral reasons at the customer, site, or item level.

    • E. 

      The first step to enable customer acceptance is to set the OM system parameter: Enable Fulfillment Acceptance.

    • F. 

      The second step of the customer acceptance setup is to define customer acceptance deferral reasons in the AR revenue management setup.

  • 15. 
    What are the three necessary setup steps to enable system credit checking on an order? (Choose three. )
    • A. 

      Assign a credit rule to the order type being used.

    • B. 

      Select a warehouse that has credit checking enabled.

    • C. 

      Enable the Credit Card Security Code system parameter.

    • D. 

      Use a payment term for which the Credit check box is enabled.

    • E. 

      Define the customer profile so that the Credit check box is selected.

    • F. 

      Make sure that there is at least one defaulting rule enabled for credit checking.

  • 16. 
    Select two correct statements regarding the workflow holds/activities/Exception Management.
    • A. 

      The Retry concurrent program can be run only at Execution mode.

    • B. 

      Retry workflow activities are possible only at individual error levels.

    • C. 

      Retry workflow activities are possible in batch mode via concurrent program.

    • D. 

      Retry workflow activities cannot be launched from the Process Messages window.

    • E. 

      When a ship line activity errors out after the line has progressed and the delivery detail is closed, the line status displays as Notify instead of Retry.

  • 17. 
    During the requirements-gathering stage, your client states that it wants items purchased from a supplier to be inspected. The client wants to know at what point the inventory is available to reserve. When can reservations occur?
    • A. 

      Upon PO Line receipt

    • B. 

      When the PO is approved

    • C. 

      After the Inspection step is performed

    • D. 

      After the Receipt Line Deliver transaction

    • E. 

      Reservations are not possible on inspection items

  • 18. 
    Your client requires Org A to supply Org B with inventory on a need basis. The Internal Order flag is checked. An internal requisition has been created and approved. What type of receipt would Org B have to perform to receive the goods?
    • A. 

      RMA receipt

    • B. 

      Inter-Org Transfer

    • C. 

      Account Alias receipt

    • D. 

      Purchase Order receipt

    • E. 

      Receipt by Shipment Number

  • 19. 
    Your client has an item that is used globally. The site in Colorado is evaluating a local source for the item. The buyer requires the incoming goods from the local source to be separated from the goods received from nonlocal sources. Which three actions should be performed to meet this requirement? (Choose three. )
    • A. 

      Enter the item in the subinventory form.

    • B. 

      Modify master item attributes to default a subinventory.

    • C. 

      Change the PO Line receipt routing to Inspection Required.

    • D. 

      Modify organization item attributes to default a subinventory.

    • E. 

      Create a separate subinventory to stock goods from the local source.

    • F. 

      Create item transaction default for the item in the Item Master Organization.

    • G. 

      Insert a separate subinventory on the purchase order and attach Receiver Notes.

    • H. 

      Ensure that you do not create an item transaction default for the item in the Inventory Organization.

  • 20. 
    Which data is provided by Oracle Purchasing to Oracle Inventory?
    • A. 

      ATP supply, planning supply, and requisition information

    • B. 

      Items, requisition, and interorganization shipment information

    • C. 

      Receipts/deliveries and interorganization shipment information

    • D. 

      Receipts/deliveries, ATP supply, and planning supply information

    • E. 

      Receipts/deliveries, units of measure, ATP supply, and planning supply information

  • 21. 
    Oracle Inventory interacts with other Oracle applications by sharing information. Choose two pieces of information that Oracle Payables, Receivables, and Costing applications receive from the Inventory module. (Choose two.)
    • A. 

      Item information

    • B. 

      UOM information

    • C. 

      On-hand information

    • D. 

      ATP supply information

    • E. 

      Transaction accounting detail information

  • 22. 
    What is true about (alpha) in the Exponential Smoothing Forecast (ESF) method?
    • A. 

      (alpha) equals the old forecast

    • B. 

      (alpha) is always greater than one.

    • C. 

      (alpha) is calculated by Oracle Inventory.

    • D. 

      (alpha) is multiplied by the forecast error to determine the adjustment.

    • E. 

      (alpha) equals the old forecast plus a portion of the forecast error from the previous period.

  • 23. 
    You and your client determined that forecasting methods included with inventory will be sufficient to meet the client’s needs. You and the customer have decided to use Focus Forecasting to begin with and move to Exponential Smoothing after one year. Along the way, your customer noticed some definite trends in demand and has requested your help to re-evaluate the forecasting method. What do you recommend as a forecasting method? What additional information is needed, if any?
    • A. 

      Focus Forecasting

    • B. 

      Exponential Smoothing

    • C. 

      Exponential Smoothing with Trend Enhanced Forecasting, Alpha and Beta Coefficients

    • D. 

      Exponential Smoothing with Season Enhanced Forecasting, Alpha and Beta Coefficients

    • E. 

      Exponential Smoothing with Season Enhanced Forecasting, Alpha and Gamma Coefficients

  • 24. 
    The Exponential Smoothing Forecast (ESF) method should be selected when _____.
    • A. 

      Trend demand patterns are greater than alpha ()

    • B. 

      Seasonal demand patterns are greater than

    • C. 

      Both trend and seasonal demand patterns are equal to zero

    • D. 

      Both trend and seasonal demand patterns are less than

    • E. 

      Both trend and seasonal demand patterns are greater than

  • 25. 
    You are implementing inventory and plan to use Focus Forecasting. Focus Forecasting assumes that the forecasting method that worked best for the previous period _____ and _____. (Choose two.)
    • A. 

      Will be best for the current period

    • B. 

      Was based on heuristic processes

    • C. 

      Was based on stochastic processes

    • D. 

      Will result from comparing five forecast methods

    • E. 

      Will use the method that yields the greatest absolute percentage error (APE)

  • 26. 
    ACME is implementing Inventory in a make-to-order manufacturing environment, where there is on-hand inventory for 200 different motors. For these purchasable items, given the proper profile setup, Min-max can automatically create _____.
    • A. 

      An expense account

    • B. 

      An encumbrance account

    • C. 

      An invoice price variance account

    • D. 

      An inventory Accounts Payable accrual account

    • E. 

      Records in the Purchase Order Requisition interface table

  • 27. 
    The client wants to implement reorder point planning for some items in the organization. They currently use min-max planninG. What is the minimum amount of information that needs to be changed on the items the client wants to plan?
    • A. 

      Safety Stock Quantity and Forecast

    • B. 

      Safety Stock Quantity, Inventory Planning Method set to Reorder Point, Forecast Quantity, Carrying Cost

    • C. 

      Safety Stock Quantity, Inventory Planning Method set to Reorder Point, Forecast Quantity, Carrying Cost, and Order Cost

    • D. 

      Safety Stock Quantity, Inventory Planning Method set to Reorder Point, Forecast Quantity, Carrying Cost, Order Cost, and Maximum Order Quantity

    • E. 

      Safety Stock Quantity, Inventory Planning Method set to Reorder Point, Forecast Quantity, Carrying Cost, Order Cost, and Minimum Order Quantity

  • 28. 
    Your customer decided to use min-max planning for some items in specific subinventories. You caution him not to include too many customer orders when he runs the report. What option do you suggest that he include?
    • A. 

      Supply Cutoff Date

    • B. 

      Demand Cutoff Date

    • C. 

      Supply and Demand Cutoff Dates

    • D. 

      Material Requirement Planning (MRP)

    • E. 

      Advanced Supply Chain Planning (ASCP)

  • 29. 
    ACME is implementing Inventory in a Process Manufacturing environment. The default profile for the min-max planning report is deployed. What will be the result?
    • A. 

      Requisitions will be pre-approved.

    • B. 

      Users must approve requisitions for items that have a limited shelf life.

    • C. 

      Users must approve requisitions for items with a Material Safety Data Sheet (MSDS).

    • D. 

      Users must approve requisitions that are inside the items Past Due Supply time fence.

    • E. 

      Users must approve requisitions when the quantity exceeds the item’s Economic Order Quantity (EOQ).

  • 30. 
    What is the significance of the Shrinkage Rate item attribute?
    • A. 

      The expected reduction in demand within the planning fence

    • B. 

      The average loss of material during manufacturing or storage

    • C. 

      The expected decrease in the rate of production of units during manufacturing

    • D. 

      The expected percentage (%) loss of quality of an item during the manufacturing process or storage

  • 31. 
    Which two statements are true regarding Inventory replenishment methods? (Choose two.)
    • A. 

      Kanban replenishment signals are manual.

    • B. 

      Kanban replenishment signals are automatic.

    • C. 

      Reorder point planning can be performed at the subinventory level.

    • D. 

      Min-max planning considers lead time and is not based on demand projections.

    • E. 

      Replenishment counting enables you to perform counts for nontracked subinventories, and then direct Inventory to check these counts against the minimum quantities that you have specified.

  • 32. 
    Which is the best method for replenishing free stock items that are stored on the production floor, or office supplies kept in departmental cabinets?
    • A. 

      Cycle counting

    • B. 

      Min-max planning

    • C. 

      Replenishment counting

    • D. 

      Economic Order Quantity (EOQ)

    • E. 

      Enabling the Bulk Picked item master attribute

  • 33. 
    Available to Promise (ATP) checking can be specified _____.
    • A. 

      At the component level

    • B. 

      As a function of unconsumed forecast

    • C. 

      As a function of forward unconsumed forecast

    • D. 

      Only for finished goods at the subinventory level

    • E. 

      As a function of backward unconsumed forecast

  • 34. 
    How many distinct ABC Compile Names can exist at a given time in an inventory organization?
    • A. 

      An unlimited number of names

    • B. 

      Only one for each subinventory

    • C. 

      Only one per inventory organization

    • D. 

      One for each subinventory and one for each inventory organization

  • 35. 
    Select one accurate and comprehensive description of the content scope of an ABC Compile.
    • A. 

      Performed at the inventory organization level only

    • B. 

      Performed at the individual subinventory level only

    • C. 

      Performed at the inventory organization or individual subinventory level

    • D. 

      Performed at the individual subinventory level with a choice to include the same items from all subinventories in the organization

  • 36. 
    Which three statements are true about ABC Analysis and cycle count Classes? (Choose three. )
    • A. 

      The hit/miss% for the Class overrides the hit/miss% of the cycle count header.

    • B. 

      The hit/miss% for the cycle count header overrides the hit/miss% of the Class.

    • C. 

      An ABC Analysis can be compiled for nonasset (expense) subinventories for which quantities are trackeD.

    • D. 

      An ABC Analysis can be compiled for a subinventory that is defined as a non-quantity-tracked subinventory.

    • E. 

      In ABC Analysis, a quantity variance must always be submitted for approval, regardless of the tolerance levels.

    • F. 

      Positive and negative tolerances can be entered for each class, which will override the tolerance at the cycle count header level.

  • 37. 
    Identify three levels at which you can generate cycle count requests and perform cycle counting under a single cycle count namE. (Choose three. )
    • A. 

      By Item Category

    • B. 

      For all subinventories

    • C. 

      By Item Category Set

    • D. 

      By bonded Warehouse

    • E. 

      For a specific subinventory

    • F. 

      By specific Stock Locator

    • G. 

      For a selected set of subinventories

  • 38. 
    Identify five valid steps in defining a Physical Inventory. (Choose five. )
    • A. 

      Void unused or lost tags.

    • B. 

      Reconcile Cost of Goods updates.

    • C. 

      Allow only WIP and purchasing transactions.

    • D. 

      Take a snapshot of system on-hand quantities.

    • E. 

      Approve or reject Physical Inventory adjustments based on approval tolerances.

    • F. 

      Automatically post adjustments to inventory balances and general ledger accounts.

    • G. 

      Define a Physical Inventory for your whole warehouse or subinventories within your warehouse.

    • H. 

      Run the Physical Inventory variance report for the controller to credit or debit an entry on the cost of goods sold.

  • 39. 
    What is the purpose of the Physical Inventory Snapshot?
    • A. 

      To permit the entry of inventory transactions

    • B. 

      To prevent the entry of inventory transactions

    • C. 

      To provide the opening balance value for the fiscal period.

    • D. 

      To provide the baseline for comparison of physical count quantities against system on-hand quantities.

  • 40. 
    Which two statements apply to a Physical Inventory Tag as defined by Inventory? (Choose two.)
    • A. 

      Physical Inventory Tags cannot be bar coded.

    • B. 

      It can contain a count for a group of a given item.

    • C. 

      It is produced and printed by the Generate Physical Inventory Tags function.

    • D. 

      It is unique for every stock locator/item/lot number/serial number combination.

    • E. 

      It is used to indicate to the warehouse staff that a count has been recorded for that location, so that a duplicate count is not performed.

  • 41. 
    Cycle count variance approval tolerances have been defined for a cycle count. The Approval Required option in the cycle count has been set to: If out of tolerance. When an item count exceeds the approval tolerance specified, Inventory _____.
    • A. 

      Automatically approves and posts the cycle count adjustment

    • B. 

      Holds the cycle count adjustment for approval and posts it after approval

    • C. 

      Holds the cycle count adjustment for a recount and does not post the adjustment

    • D. 

      Holds the cycle count adjustment for approval and does not post the adjustment after approval

  • 42. 
    ACME requires cycle counting variance approval tolerances and the Approval Required option is set to: If out of tolerance. When the actual count falls within tolerance, Inventory _____.
    • A. 

      Automatically approves and posts the cycle count adjustment

    • B. 

      Automatically approves, but does not post the cycle count adjustment

    • C. 

      Holds the cycle count adjustment for approval and posts it after approval

    • D. 

      Holds the cycle count adjustment for a recount and does not post the adjustment

  • 43. 
    ACME requires cycle counting variance approval tolerances. The Approval Required option is set to: If out of tolerance and Automatic Recounts is set to three. When the first cycle count actual quantity exceeds the item approval tolerance, Inventory ____.
    • A. 

      Automatically approves and posts the cycle count adjustment

    • B. 

      Holds the cycle count adjustment for approval and posts it after approval

    • C. 

      Holds the cycle count adjustment for a recount and does not post the adjustment

    • D. 

      Holds the cycle count adjustment for approval and does not post the adjustment

  • 44. 
    Which two reports detail pending inventory adjustments for a count? (Choose two.)
    • A. 

      Cycle Count Listing

    • B. 

      Physical Inventory Tag Listing

    • C. 

      Physical Inventory Counts Report

    • D. 

      Physical Inventory Adjustments Report

    • E. 

      Cycle Counts Pending Approval Report

    • F. 

      Cycle Count Entries and Adjustments Report

  • 45. 
    After several cycle counts have been performed, the client wants to identify those items that consistently require adjustment. Which report will help the client identify those items?
    • A. 

      Cycle Count Listing

    • B. 

      Cycle Count Hit/Miss Analysis

    • C. 

      Cycle Count Unscheduled Items Report

    • D. 

      Cycle Count Entries and Adjustments Report

  • 46. 
    For the profile option TP: INV Cycle Count Entries form to Background processing, what are the system requirements for it to be effective? (Choose two.)
    • A. 

      The Receiving Transaction manager must be active.

    • B. 

      The Cost Manager interface manager must be active.

    • C. 

      The Move Transaction interface manager must be active.

    • D. 

      The Material Transaction interface manager must be active.

    • E. 

      The Lot Move Transaction interface manager must be active.

  • 47. 
    The client uses an external application as the source for cycle counts. What value should be used for the profile option INV: CCEOI Commit Point to ensure successful processing of the Import Cycle Count Entries from Open Interface concurrent program consistently?
    • A. 

      Create

    • B. 

      Process

    • C. 

      Simulate

    • D. 

      A number

  • 48. 
    What is the purpose of the profile options INV: CCEOI Commit Point and INV: CCEOI Workers?
    • A. 

      To provide a baseline for generating cycle count tags

    • B. 

      To set default values for the frequency of automatic cycle count requests

    • C. 

      To set default values for the Import Cycle Count Entries from Open Interface concurrent program

    • D. 

      To limit the actions permitted when reviewing cycle counts imported from an external system using the Cycle Count Entries Open Interface

  • 49. 
    What are the prerequisites for performing an accurate ABC Compile for inventory items using the Current on-hand value as the compile criterion?
    • A. 

      Items costed only

    • B. 

      Items with on-hand quantity only

    • C. 

      Either items with on-hand quantity or items costed

    • D. 

      Both items with on-hand quantity and items costed

  • 50. 
    For performing an ABC analysis, you need to define ABC Compile, ABC Classes, and ABC Assignment Groups. Identify two correct actions. (Choose two.)
    • A. 

      Link an ABC Group to an ABC Compile.

    • B. 

      Link an ABC Compile to an ABC Group.

    • C. 

      Assign an ABC Group to an ABC Class.

    • D. 

      Assign an ABC Class to an ABC Group.

    • E. 

      Enable an ABC Group in Subinventories.