Oracle Ebs R12- Part 1

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  • 1/72 Questions

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

    • One
    • Each
    • Case
    • Gross
    • Dozen
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About This Quiz

This quiz, titled 'Oracle EBS R12- Part 1', assesses knowledge in Oracle EBS, focusing on inventory and supply chain management functionalities such as ATP checking, cycle counting, and inter-organization transfers. It is designed for professionals seeking to enhance their ERP skills.

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  • 2. 

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

    • Items costed only

    • Items with on-hand quantity only

    • Either items with on-hand quantity or items costed

    • Both items with on-hand quantity and items costed

    Correct Answer
    A. Both items with on-hand quantity and items costed
    Explanation
    To perform an accurate ABC Compile for inventory items using the current on-hand value as the compile criterion, it is necessary to consider both items with on-hand quantity and items costed. This means that the analysis should include items that have both a quantity on hand and a cost associated with them. By considering both factors, the ABC Compile can provide a comprehensive and accurate assessment of the inventory items based on their current on-hand value.

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  • 3. 

    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?

    • Cycle Count Listing

    • Cycle Count Hit/Miss Analysis

    • Cycle Count Unscheduled Items Report

    • Cycle Count Entries and Adjustments Report

    Correct Answer
    A. Cycle Count Entries and Adjustments Report
    Explanation
    The Cycle Count Entries and Adjustments Report will help the client identify those items that consistently require adjustment. This report will provide a list of all the cycle count entries and adjustments made for each item. By analyzing this report, the client can identify the items that frequently require adjustments, indicating a potential issue with their accuracy or handling.

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  • 4. 

    An item reserved at the S/N level is associated with ________.

    • MTL_SALES_ORDERS

    • MTL_SERIAL_NUMBERS

    • MTL_CMRO_ALLOC_ALL

    • OE_ORDER_HEADERS_ALL

    Correct Answer
    A. MTL_SERIAL_NUMBERS
    Explanation
    An item reserved at the S/N level is associated with MTL_SERIAL_NUMBERS. This suggests that the reservation is specific to a particular serial number of the item. The other options, MTL_SALES_ORDERS, MTL_CMRO_ALLOC_ALL, and OE_ORDER_HEADERS_ALL, do not directly relate to the concept of serial numbers and would not be the correct association for a reserved item at the S/N level.

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  • 5. 

    What is the purpose of the Physical Inventory Snapshot?

    • To permit the entry of inventory transactions

    • To prevent the entry of inventory transactions

    • To provide the opening balance value for the fiscal period.

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

    Correct Answer
    A. To provide the baseline for comparison of physical count quantities against system on-hand quantities.
    Explanation
    The purpose of the Physical Inventory Snapshot is to provide the baseline for comparison of physical count quantities against system on-hand quantities. This means that it serves as a reference point to compare the actual physical inventory with the inventory recorded in the system. By comparing these quantities, any discrepancies or errors in the system can be identified and corrected. It helps in ensuring the accuracy of inventory records and facilitates effective inventory management.

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  • 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?

    • Enable lot control. Map three categories as coproducts.

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

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

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

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

    Correct Answer
    A. Enable lot and grade control for item A. Have three categories mapped with grades.
  • 7. 

    Weight and physical dimensions are examples of ____.

    • An item attribute

    • An item parameter

    • An item profile option

    • An item master characteristic

    Correct Answer
    A. An item attribute
    Explanation
    Weight and physical dimensions are examples of item attributes. Item attributes refer to the specific characteristics or properties of an item. In this case, weight and physical dimensions are specific attributes that describe an item's size and mass. Item attributes are used to provide detailed information about an item, allowing for accurate identification and categorization.

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  • 8. 

    You are working on setting up subinventories for the client’s organization. The client wants to call the subinventory DAYTONS-20STOCKROOM. The system does not let you create this subinventory. What is the problem?

    • The subinventory name cannot have the – sign.

    • The subinventory name cannot have numbers in it.

    • The subinventory name cannot have an apostrophe.

    • The subinventory name cannot be longer than 10 characters.

    Correct Answer
    A. The subinventory name cannot be longer than 10 characters.
    Explanation
    The problem is that the subinventory name cannot be longer than 10 characters.

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  • 9. 

    You are required to transact an interorganization transfer for Item A. Before the transfer, you must determine and define_____.

    • Planning lead times

    • Material ownership during transfers

    • A shipping network between the organizations

    • The general ledger accounts to be used in transit

    Correct Answer
    A. A shipping network between the organizations
    Explanation
    Before conducting an interorganization transfer for Item A, it is necessary to determine and define a shipping network between the organizations. This means establishing the logistics and transportation routes, methods, and agreements that will be used to physically move the item from one organization to another. This step is crucial in ensuring a smooth and efficient transfer process, as it allows for proper coordination and planning of the transportation logistics involved in the transfer.

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  • 10. 

    What is the purpose of the profile options INV: CCEOI Commit Point and INV: CCEOI Workers?

    • To provide a baseline for generating cycle count tags

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

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

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

    Correct Answer
    A. To set default values for the Import Cycle Count Entries from Open Interface concurrent program
    Explanation
    The purpose of the profile options INV: CCEOI Commit Point and INV: CCEOI Workers is to set default values for the Import Cycle Count Entries from Open Interface concurrent program. These profile options allow users to specify the number of workers and commit point for the concurrent program, which determines the performance and efficiency of importing cycle count entries from an external system. By setting default values for these profile options, users can streamline the import process and ensure that it runs smoothly.

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  • 11. 

    Your client has material that varies in size, weight, and container typE. It wants to have flexibility in creating locators based upon receipt of goods. Which Locator Control type would accommodate this requirement?

    • None

    • Item Level

    • Prespecified

    • Dynamic Entry

    • Subinventory Level

    Correct Answer
    A. Dynamic Entry
    Explanation
    Dynamic Entry would accommodate the requirement of the client to have flexibility in creating locators based upon receipt of goods. This control type allows for the creation of locators on the fly, without any predefined specifications or restrictions. It allows for the variation in size, weight, and container type of the materials, providing the necessary flexibility for the client's needs.

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  • 12. 

    For which type of move order is approval required?

    • Planning Move Order

    • Shipping Move Order

    • Production Move Order

    • Requisition Move Order

    • Replenishment Move Order

    Correct Answer
    A. Requisition Move Order
    Explanation
    Approval is required for a Requisition Move Order because it involves requesting and moving materials from one location to another within an organization. This type of move order usually involves the transfer of inventory or supplies from a central warehouse to a specific department or individual. Since this transfer affects inventory levels and may require additional resources, such as labor or equipment, it is important to obtain approval before executing the move order to ensure proper allocation of resources and maintain inventory accuracy.

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  • 13. 

    Which Inventory table stores reservations information generated for sales orders?

    • MTL_DEMAND

    • MTL_SALES_ORDERS

    • OE_ORDER_LINES_ALL

    • MTL_GENERIC_DISPOSITIONS

    Correct Answer
    A. MTL_DEMAND
    Explanation
    The correct answer is MTL_DEMAND because this inventory table stores reservations information generated for sales orders.

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  • 14. 

    At which level can costing methods, such as Standard Costing or Average Costing (Moving Average costing), be controlled in an inventory organization? 1. individual item level 2. subinventory level 3. inventory organization level

    • 1 only

    • 2 only

    • 3 only

    • 1 and 3

    • 1 and 2

    • 2 and 3

    • 1, 2, and 3

    Correct Answer
    A. 3 only
    Explanation
    Costing methods, such as Standard Costing or Average Costing, can be controlled at the inventory organization level. This means that the costing methods are applied consistently across all items and subinventories within the organization. Controlling the costing methods at this level ensures uniformity and simplifies the management of inventory costs.

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  • 15. 

    You are defining the staging subinventory for your sales order pick release rule. Which flag should be enabled (checked) for the rule to work properly?

    • Nettable

    • Depreciable

    • Locator Alias

    • Asset Subinventory

    • Allow Reservations

    • PAR (Periodic Automatic Replenishment) Level Planning

    Correct Answer
    A. Allow Reservations
    Explanation
    To ensure that the sales order pick release rule works properly, the "Allow Reservations" flag should be enabled. This flag allows the subinventory to be reserved for specific orders, ensuring that the inventory is allocated correctly and preventing overselling or stockouts. By enabling this flag, the system will consider the subinventory as available for reservation during the pick release process.

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  • 16. 

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

    • An unlimited number of names

    • Only one for each subinventory

    • Only one per inventory organization

    • One for each subinventory and one for each inventory organization

    Correct Answer
    A. An unlimited number of names
    Explanation
    The correct answer is "an unlimited number of names" because there is no restriction mentioned in the question regarding the number of distinct ABC Compile Names that can exist at a given time in an inventory organization. Therefore, there can be an unlimited number of names.

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  • 17. 

    Which Inventory table stores the item attribute values assigned to a system item?

    • MTL_SYSTEM_ITEMS_B

    • MTL_ITEM_ATTRIBUTES

    • MTL_ITEM_TEMPLATES_B

    • MTL_STATUS_ATTRIBUTE_VALUES

    Correct Answer
    A. MTL_SYSTEM_ITEMS_B
    Explanation
    MTL_SYSTEM_ITEMS_B is the correct answer because this table stores the item attribute values assigned to a system item. It is specifically designed to store the information related to system items and their attributes. The other options, MTL_ITEM_ATTRIBUTES, MTL_ITEM_TEMPLATES_B, and MTL_STATUS_ATTRIBUTE_VALUES, do not specifically store the item attribute values assigned to a system item.

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  • 18. 

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

    • Cycle counting

    • Min-max planning

    • Replenishment counting

    • Economic Order Quantity (EOQ)

    • Enabling the Bulk Picked item master attribute

    Correct Answer
    A. Replenishment counting
    Explanation
    Replenishment counting is the best method for replenishing free stock items stored on the production floor or office supplies kept in departmental cabinets. This method involves regularly counting the inventory and ordering more items based on the current stock levels. It ensures that the inventory is always replenished in a timely manner, preventing stockouts and ensuring smooth operations. Cycle counting involves counting a small portion of the inventory on a regular basis, while min-max planning sets minimum and maximum stock levels for each item. Economic Order Quantity (EOQ) calculates the optimal order quantity based on demand and holding costs. Enabling the Bulk Picked item master attribute is not related to replenishing stock items.

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  • 19. 

    Your client wants to ensure that backflush operations can continue even if the inventory level is driven below zero. At the same time, they want typical inventory transactions to be prevented from driving inventory levels below zero. Which configuration meets this requirement?

    • Org Profile option to Allow Negative Balances = No; Profile option for INV: Override Neg for Backflush = No.

    • Org Profile option to Allow Negative Balances = No; Profile option for INV: Override Neg for Backflush = Yes.

    • Org Profile option to Allow Negative Balances = Yes; Profile option for INV: Override Neg for Backflush = No.

    • Org Profile option to Allow Negative Balances = Yes; Profile option for INV: Override Neg for Backflush = Yes.

    Correct Answer
    A. Org Profile option to Allow Negative Balances = No; Profile option for INV: Override Neg for Backflush = Yes.
    Explanation
    The client wants to prevent typical inventory transactions from driving inventory levels below zero, but still wants to allow backflush operations to continue even if the inventory level is driven below zero. Therefore, the configuration that meets this requirement is to set the Org Profile option to Allow Negative Balances to No, indicating that negative inventory balances are not allowed, and set the Profile option for INV: Override Neg for Backflush to Yes, indicating that negative inventory balances are allowed for backflush operations.

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  • 20. 

    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?

    • Upon PO Line receipt

    • When the PO is approved

    • After the Inspection step is performed

    • After the Receipt Line Deliver transaction

    • Reservations are not possible on inspection items

    Correct Answer
    A. After the Receipt Line Deliver transaction
    Explanation
    Reservations can occur after the Receipt Line Deliver transaction. This means that once the items are received from the supplier, they become available for reservation. The client wants to know at what point the inventory is available to reserve, and it is after the Receipt Line Deliver transaction that reservations can be made.

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  • 21. 

    What is true about (alpha) in the Exponential Smoothing Forecast (ESF) method?

    • (alpha) equals the old forecast

    • (alpha) is always greater than one.

    • (alpha) is calculated by Oracle Inventory.

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

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

    Correct Answer
    A. (alpha) is multiplied by the forecast error to determine the adjustment.
    Explanation
    In the Exponential Smoothing Forecast (ESF) method, (alpha) is multiplied by the forecast error to determine the adjustment. This means that (alpha) is used to weigh the importance of the forecast error in making adjustments to the forecast. A higher value of (alpha) will give more weight to the forecast error, resulting in larger adjustments to the forecast.

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  • 22. 

    ACME has specified both quantity variance and adjustment value approval tolerances at the cycle count header level only. The Approval Required option is set to: If out of tolerance. Inventory automatically approves the actual count entered when ____.

    • The cycle count quantity entered for an item falls within the quantity variance tolerance

    • The cycle count quantity entered for an item falls within the adjustment value approval tolerance

    • The cycle count quantity entered for an item falls within either the quantity variance tolerance or the adjustment value approval tolerance

    • The cycle count quantity entered for an item falls within both the quantity variance tolerance and the adjustment value approval tolerance

    Correct Answer
    A. The cycle count quantity entered for an item falls within both the quantity variance tolerance and the adjustment value approval tolerance
    Explanation
    When the cycle count quantity entered for an item falls within both the quantity variance tolerance and the adjustment value approval tolerance, the inventory will automatically approve the actual count entered.

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  • 23. 

    In the eTRM Technical Reference, where can you find the workflows associated with an application?

    • PDF files

    • FND data

    • DBA data

    • HTML files

    Correct Answer
    A. FND data
    Explanation
    In the eTRM Technical Reference, the workflows associated with an application can be found in the FND data. FND data refers to the data stored in the Foundation (FND) tables, which contain information about various components and configurations in the Oracle E-Business Suite. These tables store data related to workflows, including their definitions, attributes, and associations with specific applications. Therefore, by accessing the FND data, one can locate the workflows associated with an application in the eTRM Technical Reference.

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  • 24. 

    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?

    • Focus Forecasting

    • Exponential Smoothing

    • Exponential Smoothing with Trend Enhanced Forecasting, Alpha and Beta Coefficients

    • Exponential Smoothing with Season Enhanced Forecasting, Alpha and Beta Coefficients

    • Exponential Smoothing with Season Enhanced Forecasting, Alpha and Gamma Coefficients

    Correct Answer
    A. Exponential Smoothing with Trend Enhanced Forecasting, Alpha and Beta Coefficients
    Explanation
    Based on the given information, the client initially decided to use Focus Forecasting and then transition to Exponential Smoothing after one year. However, the client has now noticed some definite trends in demand and wants to re-evaluate the forecasting method. In this case, it would be recommended to use Exponential Smoothing with Trend Enhanced Forecasting, Alpha and Beta Coefficients. This method takes into account the trends in demand by incorporating a trend component (beta coefficient) in addition to the smoothing factor (alpha coefficient). This will provide a more accurate forecast considering the observed trends in demand. No additional information is mentioned as needed in the question.

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  • 25. 

    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 _____.

    • An expense account

    • An encumbrance account

    • An invoice price variance account

    • An inventory Accounts Payable accrual account

    • Records in the Purchase Order Requisition interface table

    Correct Answer
    A. Records in the Purchase Order Requisition interface table
    Explanation
    In a make-to-order manufacturing environment, ACME is implementing Inventory for purchasable items. With the proper profile setup, the Min-max feature can automatically create records in the Purchase Order Requisition interface table. This means that when the inventory for a particular motor falls below the minimum level, the system will generate a purchase order requisition for that item, ensuring that the inventory is replenished. This helps to streamline the procurement process and maintain adequate stock levels for efficient manufacturing operations.

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  • 26. 

    Review the organization structure regarding the inventory organizations (IO) and sales organizations (SO). The sales organizations would not transact inventory items. IO 2 would not be used right away, but would be created during the implementation. What is the minimum number of subinventories required for this implementation?

    • Four (one for each IO being utilized at implementation)

    • Five (One for each IO. SOs would not require subinventories.)

    • Eight (Inventory and sales organizations require a minimum of one subinventory each. )

    • 10 (Each IO requires at least two subinventories, one for receiving and one for shipping. )

    • 16 (Each IO and SO should have at least two subinventories, one for receiving and one for shipping. )

    Correct Answer
    A. Five (One for each IO. SOs would not require subinventories.)
    Explanation
    The correct answer is five because the question states that the sales organizations would not transact inventory items, meaning they do not require subinventories. Therefore, the minimum number of subinventories required for this implementation would be one for each inventory organization being utilized at implementation, which totals to five.

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  • 27. 

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

    • Trend demand patterns are greater than alpha ()

    • Seasonal demand patterns are greater than

    • Both trend and seasonal demand patterns are equal to zero

    • Both trend and seasonal demand patterns are less than

    • Both trend and seasonal demand patterns are greater than

    Correct Answer
    A. Both trend and seasonal demand patterns are equal to zero
    Explanation
    The Exponential Smoothing Forecast (ESF) method should be selected when both trend and seasonal demand patterns are equal to zero. This is because the ESF method is most suitable for forecasting when there is no trend or seasonality in the data. In such cases, the ESF method can effectively capture and forecast the underlying patterns in the data.

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  • 28. 

    What is the significance of the Shrinkage Rate item attribute?

    • The expected reduction in demand within the planning fence

    • The average loss of material during manufacturing or storage

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

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

    Correct Answer
    A. The average loss of material during manufacturing or storage
    Explanation
    The significance of the Shrinkage Rate item attribute is that it represents the average loss of material during manufacturing or storage. This attribute helps in estimating the amount of material that is likely to be lost during the production or storage process. By considering the shrinkage rate, businesses can better plan their inventory levels and production quantities to account for the expected loss of material. This attribute is important for cost control and ensuring that enough materials are available to meet demand despite the expected loss.

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  • 29. 

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

    • Performed at the inventory organization level only

    • Performed at the individual subinventory level only

    • Performed at the inventory organization or individual subinventory level

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

    Correct Answer
    A. Performed at the inventory organization or individual subinventory level
    Explanation
    The ABC Compile can be performed either at the inventory organization level or at the individual subinventory level. This means that it can be done for the entire organization's inventory or for specific subinventories within the organization. The scope of the ABC Compile is not limited to just one level, but it can be carried out at both levels depending on the requirements. Additionally, the answer does not mention anything about including the same items from all subinventories in the organization, so it is not necessary to include them in the compilation.

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  • 30. 

    A customer is in the process of setting up a warehouse in the Oracle system. The customer wants the whole warehouse to be a subinventory with the following requirements: 1) Have bins in the warehouse to store material. 2) Track some high-dollar items by quantity and the bin in which they reside. 3) Track low-dollar parts, such as nuts and bolts, by quantity, but the customer does not want the overhead of specifying the bin in which they should reside. What would you do to meet this requirement?

    • Set up the subinventory with Locator Control set to Prespecified.

    • Set up the subinventory with Locator Control set to Dynamic Entry.

    • Set up the subinventory with Locator Control set to Item Level control; for items that should be tracked by bin, set Locator Control to None.

    • Set up the subinventory with Locator Control set to Item Level control; for items that should be tracked by bin, set Locator Control to Dynamic Entry.

    Correct Answer
    A. Set up the subinventory with Locator Control set to Item Level control; for items that should be tracked by bin, set Locator Control to Dynamic Entry.
    Explanation
    To meet the customer's requirements, the subinventory should be set up with Locator Control set to Item Level control. This means that the system will track the inventory at the item level, allowing for specific tracking of high-dollar items by quantity and bin. For low-dollar parts, the customer does not want to specify the bin, so the Locator Control should be set to Dynamic Entry, which allows for the system to assign a bin dynamically without the overhead of specifying it.

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  • 31. 

    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?

    • Requisitions will be pre-approved.

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

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

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

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

    Correct Answer
    A. Requisitions will be pre-approved.
    Explanation
    The default profile for the min-max planning report in ACME's implementation of Inventory in a Process Manufacturing environment is set to pre-approve requisitions. This means that requisitions will automatically be approved without requiring any user intervention.

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  • 32. 

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

    • Create move orders.

    • Create and save queries.

    • Change material statuses.

    • Perform miscellaneous issues.

    • Perform miscellaneous receipts.

    • Perform pick confirm transactions.

    • Perform ship confirm transactions

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

    Correct Answer(s)
    A. Create move orders.
    A. Create and save queries.
    A. Change material statuses.
    A. View material in receiving, on-hand quantities, and intransit material.
    Explanation
    The Material Workbench allows users to perform four functions: creating move orders, creating and saving queries, changing material statuses, and viewing material in receiving, on-hand quantities, and intransit material.

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  • 33. 

    Which data is provided by Oracle Purchasing to Oracle Inventory?

    • ATP supply, planning supply, and requisition information

    • Items, requisition, and interorganization shipment information

    • Receipts/deliveries and interorganization shipment information

    • Receipts/deliveries, ATP supply, and planning supply information

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

    Correct Answer
    A. Receipts/deliveries, ATP supply, and planning supply information
    Explanation
    Oracle Purchasing provides receipts/deliveries, ATP supply, and planning supply information to Oracle Inventory. This means that Oracle Inventory receives information about the goods that have been received or delivered, as well as information about the available to promise (ATP) supply and planning supply. This allows Oracle Inventory to accurately track and manage inventory levels, plan for future supply needs, and provide accurate information to other parts of the organization.

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  • 34. 

    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 ____.

    • Automatically approves and posts the cycle count adjustment

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

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

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

    Correct Answer
    A. Holds the cycle count adjustment for a recount and does not post the adjustment
    Explanation
    When the first cycle count actual quantity exceeds the item approval tolerance, Inventory holds the cycle count adjustment for a recount and does not post the adjustment. This means that if the actual quantity exceeds the tolerance, the system will not automatically approve and post the adjustment. Instead, it will hold the adjustment for a recount to ensure accuracy before posting it.

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  • 35. 

    Which three pieces of information does the eTRM Technical Reference provide access to? (Choose three. )

    • Data dictionaries

    • Available patches

    • Logical data models

    • Application white papers

    • Table relationship diagrams

    • Cross-platform performance information

    Correct Answer(s)
    A. Data dictionaries
    A. Logical data models
    A. Table relationship diagrams
    Explanation
    The eTRM Technical Reference provides access to three pieces of information: data dictionaries, logical data models, and table relationship diagrams. Data dictionaries contain the definitions and descriptions of all the data elements used in a system. Logical data models represent the structure and organization of data in a system. Table relationship diagrams illustrate the relationships between different tables in a database. These three pieces of information are essential for understanding the data and its organization in the eTRM system.

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  • 36. 

    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?

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

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

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

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

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

    Correct Answer
    A. Transit Type = Intransit, FOB = Receipt, Receipt Routing = Standard, Internal Order Required =checked
    Explanation
    The correct answer is Transit Type = Intransit, FOB = Receipt, Receipt Routing = Standard, Internal Order Required = checked. This setup meets all the given criteria for both sites in Company Z. The transit type "Intransit" allows inventory to travel between the two sites in both directions. The FOB (Free on Board) set to "Receipt" ensures that ownership transfer occurs upon ship confirm. The receipt routing set to "Standard" indicates a two-step receiving process. Finally, the internal order required being checked ensures that only approved orders will be performed.

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  • 37. 

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

    • Run the Auto Allocate process.

    • Run the Pick Slip Grouping process.

    • Run the Interface Trip Stop process.

    • Use the Standard Report Submission process (SRS).

    • Execute Online from the Release Sales Order window.

    • Run a concurrent program from the Release Sales Order window.

    Correct Answer(s)
    A. Use the Standard Report Submission process (SRS).
    A. Execute Online from the Release Sales Order window.
    A. Run a concurrent program from the Release Sales Order window.
  • 38. 

    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?

    • RMA receipt

    • Inter-Org Transfer

    • Account Alias receipt

    • Purchase Order receipt

    • Receipt by Shipment Number

    Correct Answer
    A. Receipt by Shipment Number
    Explanation
    Org B would have to perform a Receipt by Shipment Number to receive the goods. This type of receipt is used when inventory is transferred from one organization to another within the same company. Since Org A is supplying Org B with inventory on a need basis, an internal requisition has been created and approved. Org B would then use the shipment number provided to perform the receipt and receive the goods.

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  • 39. 

    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?

    • Safety Stock Quantity and Forecast

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

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

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

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

    Correct Answer
    A. Safety Stock Quantity, Inventory Planning Method set to Reorder Point, Forecast Quantity, Carrying Cost, and Order Cost
    Explanation
    To implement reorder point planning, the client needs to change the Inventory Planning Method from min-max planning to Reorder Point planning. Additionally, they need to update the Safety Stock Quantity, Forecast Quantity, Carrying Cost, and Order Cost. The Minimum Order Quantity and Maximum Order Quantity are not mentioned as necessary changes, so they do not need to be modified.

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  • 40. 

    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.)

    • The Receiving Transaction manager must be active.

    • The Cost Manager interface manager must be active.

    • The Move Transaction interface manager must be active.

    • The Material Transaction interface manager must be active.

    • The Lot Move Transaction interface manager must be active.

    Correct Answer(s)
    A. The Cost Manager interface manager must be active.
    A. The Material Transaction interface manager must be active.
    Explanation
    The TP: INV Cycle Count Entries form requires the Cost Manager interface manager to be active in order to be effective. This is because the Cost Manager interface manager is responsible for managing and updating cost-related information in the system, which is essential for accurate cycle counting. Additionally, the Material Transaction interface manager must be active for the TP: INV Cycle Count Entries form to be effective. This is because the Material Transaction interface manager handles the movement and tracking of inventory, which is necessary for cycle counting to be accurate and up-to-date.

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  • 41. 

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

    • Link an ABC Group to an ABC Compile.

    • Link an ABC Compile to an ABC Group.

    • Assign an ABC Group to an ABC Class.

    • Assign an ABC Class to an ABC Group.

    • Enable an ABC Group in Subinventories.

    Correct Answer(s)
    A. Link an ABC Compile to an ABC Group.
    A. Assign an ABC Class to an ABC Group.
    Explanation
    To perform an ABC analysis, it is necessary to link an ABC Compile to an ABC Group and assign an ABC Class to an ABC Group. Linking an ABC Compile to an ABC Group allows for the compilation of data for analysis. Assigning an ABC Class to an ABC Group helps in categorizing items based on their importance or value. Both of these actions are essential in conducting an effective ABC analysis.

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  • 42. 

    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 _____.

    • Automatically approves and posts the cycle count adjustment

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

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

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

    Correct Answer
    A. Holds the cycle count adjustment for approval and posts it after approval
    Explanation
    When an item count exceeds the approval tolerance specified, Inventory holds the cycle count adjustment for approval and posts it after approval. This means that the system will not automatically approve and post the adjustment, but instead, it will wait for approval before posting the adjustment. Once the adjustment is approved, it will be posted in the system.

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  • 43. 

    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 _____.

    • Automatically approves and posts the cycle count adjustment

    • Automatically approves, but does not post the cycle count adjustment

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

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

    Correct Answer
    A. Automatically approves and posts the cycle count adjustment
    Explanation
    When the actual count falls within tolerance, Inventory automatically approves and posts the cycle count adjustment.

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  • 44. 

    ACME is using cycle counting and the quantity variance approval tolerances are specified at the cycle count header level, cycle count Class level, and cycle count item level. When tolerances are set up at all the levels, which tolerance is considered first by Inventory?

    • Unit cost level

    • Subinventory level

    • Cycle count item level

    • Cycle count Class level

    • Cycle count header level

    Correct Answer
    A. Cycle count item level
    Explanation
    When tolerances are set up at all levels (unit cost level, subinventory level, cycle count item level, cycle count class level, and cycle count header level), Inventory considers the tolerance set at the cycle count item level first. This means that if there is a tolerance specified specifically for a cycle count item, it will be prioritized over any tolerances set at other levels.

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  • 45. 

    Company ABC is using serialization in all organizations that manage inventory. It wants each organization to determine the proper levels of serial control. The products in each organization are completely different, so having the same serial numbers on different products is acceptable. The only global requirement is that serial numbers be generated in advance, to prevent incorrect serial number types from being created. Using the table below, choose the cell that represents the correct parameter and attribute combination to meet Company ABC’s needs.

    • B

    • C

    • F

    • H

    • K

    • L

    Correct Answer
    A. B
  • 46. 

    PTO Kits consist of _____.

    • A standard BOM

    • A configurable BOM

    • A standard BOM with mandatory included options

    • A configurable BOM with mandatory included options

    • An engineering BOM with mandatory included options

    Correct Answer
    A. A standard BOM with mandatory included options
    Explanation
    PTO Kits consist of a standard Bill of Materials (BOM) with mandatory included options. This means that the kit includes a predetermined set of components or parts (standard BOM) that are necessary for its functionality, and certain options within the kit are mandatory and cannot be excluded.

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  • 47. 

    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. )

    • Enter the item in the subinventory form.

    • Modify master item attributes to default a subinventory.

    • Change the PO Line receipt routing to Inspection Required.

    • Modify organization item attributes to default a subinventory.

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

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

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

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

    Correct Answer(s)
    A. Create a separate subinventory to stock goods from the local source.
    A. Insert a separate subinventory on the purchase order and attach Receiver Notes.
    A. Ensure that you do not create an item transaction default for the item in the Inventory Organization.
    Explanation
    To meet the requirement of separating goods from local and nonlocal sources, the first action is to create a separate subinventory specifically for stocking goods from the local source. This will allow for easy identification and separation of these goods. The second action is to insert a separate subinventory on the purchase order and attach Receiver Notes, indicating that these goods are from the local source. This will ensure that the buyer is aware of the origin of the goods upon receipt. Lastly, it is important to ensure that an item transaction default is not created for the item in the Inventory Organization, as this could potentially mix the goods from different sources.

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  • 48. 

    Your client has two inventory organizations (INV ORG 1 and INV ORG 2). The organizations have different business requirements for stock locator control: INV ORG 1: Locators must have: Building identified Stockroom designated Row Rack Bin INV ORG 2: Locators must have: Row Rack Bin Position within Bin Which solution would meet both organizations’ requirements?

    • Establish stock locator flexfields as five segments. INV ORG 2 can use the first segment as Row.

    • Establish stock locator flexfields as four segments. INV ORG 2 can use DFF for Position within Bin.

    • Establish stock locator flexfields as five segments. INV ORG 2 can leave the fifth segment with a default value.

    • Establish stock locator flexfields as four segments. INV ORG 1 can create DFF and use that as Building identifier.

    • Establish stock locator flexfields as six segments. INV ORG 1 can create locators where the sixth segment can be a default value.

    Correct Answer
    A. Establish stock locator flexfields as five segments. INV ORG 2 can leave the fifth segment with a default value.
    Explanation
    Establishing stock locator flexfields as five segments would meet the requirements of both organizations. INV ORG 1 can utilize all five segments to include the required fields (Building, Stockroom, Row, Rack, and Bin). INV ORG 2, on the other hand, can leave the fifth segment (Position within Bin) with a default value, as it is not required for their business requirements. This solution allows both organizations to have the necessary fields in their stock locators while accommodating their specific needs.

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  • 49. 

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

    • At the component level

    • As a function of unconsumed forecast

    • As a function of forward unconsumed forecast

    • Only for finished goods at the subinventory level

    • As a function of backward unconsumed forecast

    Correct Answer
    A. At the component level
    Explanation
    ATP checking can be specified at the component level, which means that it can be done for individual components or parts that make up a finished product. This allows businesses to have a more accurate understanding of the availability of each component and make better decisions regarding production and fulfillment. By checking ATP at the component level, companies can ensure that they have enough inventory of each component to meet customer demand and avoid any delays or shortages in the production process.

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Quiz Review Timeline (Updated): Mar 19, 2023 +

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  • Mar 19, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Sep 13, 2012
    Quiz Created by
    Maarsh
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