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Oracle Fusion Cloud Applications SCM Foundations Associate - Rel 1 Sample Questions (Q22-Q27):
NEW QUESTION # 22
Which process in Oracle Fusion Cloud SCM ensures that inventory levels are maintained efficiently?
- A. Supplier Qualification.
- B. Cost Accounting.
- C. Manufacturing Execution.
- D. Replenishment Planning.
Answer: D
Explanation:
Replenishment Planning (D) in Oracle Fusion Cloud SCM ensures inventory levels are maintained efficiently by predicting demand and adjusting supply plans to replenish stock proactively. It uses forecasts and safety stock rules-e.g., ordering 300 units when stock falls to 50 and demand is expected to rise-to prevent shortages or excess inventory. Option A (Supplier Qualification) focuses on supplier evaluation, not inventory maintenance. Option B (Cost Accounting) tracks financials, not stock levels. Option C (Manufacturing Execution) manages production, not replenishment. Replenishment Planning optimizes inventory turnover, reduces carrying costs, and ensures product availability, making it a proactive inventory management tool.
NEW QUESTION # 23
Which feature in Oracle Fusion Cloud Procurement automates the creation of purchase orders from contracts?
- A. Supplier Portal.
- B. Contract Fulfillment Automation.
- C. Intelligent Document Recognition (IDR).
- D. Receipt Accounting.
Answer: B
Explanation:
Contract Fulfillment Automation (C) in Oracle Fusion Cloud Procurement automates the creation of purchase orders (POs) directly from contract terms, streamlining the procurement process. This feature uses predefined contract details-such as items, quantities, pricing, and delivery schedules-to generate POs without manual intervention. For example, if a contract stipulates 1,000 units of a product at $10 each over six months, Contract Fulfillment Automation triggers POs as needed (e.g., 200 units monthly), ensuring accuracy and compliance with the agreement. Option A (Receipt Accounting) records goods received, not PO creation. Option B (Supplier Portal) enables supplier interaction but doesn't automate PO generation from contracts. Option D (IDR) extracts data from documents like invoices, not contracts for PO creation. This automation reduces errors (e.g., mismatched quantities), saves time, and ensures procurement aligns with negotiated terms, enhancing efficiency and supplier relationships.
NEW QUESTION # 24
Which metric is used to measure the effectiveness of the Demand to Management OMBP?
- A. Inventory Turnover.
- B. Customer Acquisition Cost.
- C. Supplier Lead Time.
- D. Forecast Accuracy.
Answer: D
Explanation:
Forecast Accuracy (C) measures the effectiveness of the Demand to Management OMBP by comparing predicted demand to actual demand, reflecting how well the process anticipates market needs. For example, if a forecast predicts 1,000 units and actual sales are 950, accuracy is 95%, indicating strong performance. Option A (Customer Acquisition Cost) is a marketing metric, unrelated to demand planning. Option B (Supplier Lead Time) assesses supplier performance, not forecasting. Option D (Inventory Turnover) measures stock movement, an outcome influenced by forecasting, not a direct metric. Accurate forecasts drive efficient inventory and production planning, reducing costs (e.g., avoiding $10,000 in overstock) and ensuring customer satisfaction.
NEW QUESTION # 25
What is a key advantage of the Production Order to Cost Update OMBP in Oracle Fusion Cloud SCM?
- A. It provides real-time cost updates, ensuring immediate financial benefits.
- B. It provides accurate cost calculations, leading to better decision-making and improved profitability.
- C. It automates the production process, requiring minimal human supervision.
- D. It enhances customer relationship management, leading to effective cost analysis.
Answer: B
Explanation:
The Production Order to Cost Update process within Oracle Manufacturing Business Process (OMBP) in Oracle Fusion Cloud SCM ensures accurate cost calculations by capturing and updating costs associated with production orders, such as materials, labor, and overhead. This accuracy supports better decision-making and improves profitability by enabling precise cost analysis and pricing strategies. Option A is irrelevant as it ties to CRM, not cost updates. Option B exaggerates automation-human oversight remains necessary. Option D focuses on real-time updates, which is secondary to the primary benefit of accuracy emphasized in Oracle documentation.
NEW QUESTION # 26
What is the primary purpose of the Demand to Management OMBP in Oracle Fusion Cloud SCM?
- A. It eliminates the need for supplier collaboration.
- B. It focuses only on local inventory availability.
- C. It guarantees same-day delivery for all orders.
- D. It ensures accurate demand forecasting and planning.
Answer: D
Explanation:
The Demand to Management OMBP (C) in Oracle Fusion Cloud SCM ensures accurate demand forecasting and planning, translating market signals into actionable supply strategies. It uses tools like machine learning and collaborative forecasting to predict demand-e.g., forecasting 1,000 units for a holiday season-and aligns inventory and production accordingly. Option A is incorrect-it addresses enterprise-wide demand, not just local stock. Option B is false-no process guarantees same-day delivery; it focuses on planning. Option D is wrong-supplier collaboration is integral to fulfilling demand. This OMBP minimizes overstocking or shortages, optimizing resources and enhancing customer service through precise planning.
NEW QUESTION # 27
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