Oracle Ebs R12- Part 1
Inventory and Order Management Fundamentals
- 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).
Correct Answer
C. Permit order booking based on a successful test.Explanation
When the Check ATP (Available to Promise) option is enabled for an item in the Finished Goods subinventory, it means that the system will check the availability of the requested quantity before permitting order booking. If the test is successful and the requested quantity is available, the system will allow the order to be booked. This ensures that orders are only booked when there is sufficient inventory to fulfill them, preventing overbooking and potential customer dissatisfaction.Rate this question:
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- 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
Correct Answer(s)
B. The number of automatic recounts required
C. The tolerance level for automatic adjustment
E. The responsibility that has access to the Approve Counts functionExplanation
When setting up the cycle counting process, it is important to consider the number of automatic recounts required. This ensures that any discrepancies are identified and corrected promptly. Additionally, the tolerance level for automatic adjustment should be considered to determine when manual intervention is required. Finally, the responsibility that has access to the Approve Counts function should be taken into account to ensure that only authorized personnel can approve counts that are out of tolerance.Rate this question:
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- 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
Correct Answer
C. Transit Type = Intransit, FOB = Receipt, Receipt Routing = Standard, Internal Order Required =checkedExplanation
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.Rate this question:
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- 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
Correct Answer
B. EachExplanation
The base unit for the UOM Class Quantity is "Each." This means that when measuring quantities in this class, the base unit is considered to be one individual item.Rate this question:
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- 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.
Correct Answer(s)
D. Category 110.33 is not set up in the categories form.
E. 110.33 is not assigned to the Purchasing category set.Explanation
The two reasons for the error are that category 110.33 is not set up in the categories form and 110.33 is not assigned to the Purchasing category set. This means that the user is trying to create a requisition using a category that has not been properly configured or assigned in the system.Rate this question:
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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?
- 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.
Correct Answer
D. Enable lot and grade control for item A. Have three categories mapped with grades. -
- 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
Correct Answer
D. Requisition Move OrderExplanation
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.Rate this question:
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- 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.
Correct Answer(s)
A. Create move orders.
B. Create and save queries.
C. Change material statuses.
H. 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.Rate this question:
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- 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
Correct Answer(s)
C. Backflush subinventory transfer
E. All transaction types related to Work in Process
F. All transaction types related to Project ManufacturingExplanation
The client has decided to implement Quality and Discrete Manufacturing at a later stage, so the immediate requirement is to go-live with Inventory and Order Management. In this context, the three seeded transaction types that can be omitted for material status control are backflush subinventory transfer, all transaction types related to Work in Process, and all transaction types related to Project Manufacturing. These transaction types are not relevant for the current implementation phase and can be excluded.Rate this question:
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- 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.
Correct Answer(s)
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
Correct Answer
C. A standard BOM with mandatory included optionsExplanation
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.Rate this question:
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- 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.
Correct Answer(s)
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.Explanation
The first statement explains that when querying any transaction, the operating unit must be specified. The second statement clarifies that the Operating Unit field is only for display purposes on transaction forms. The third statement states that while entering a transaction, the user can select a different operating unit if desired. The fourth statement highlights that entering the operating unit while querying for a transaction helps improve performance by reducing the number of transactions to be queried. The last two statements mention that a new Operating Unit field has been added to forms for managing sales orders, returns, agreements, and quotes across multiple operating units.Rate this question:
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- 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
Correct Answer
A. An item attributeExplanation
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.Rate this question:
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- 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.
Correct Answer(s)
C. Customer acceptance can be enabled at the OM operating-unit 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.Explanation
Three correct statements regarding customer acceptance setups are:
- Customer acceptance can be enabled at the OM operating-unit level.
- The first step to enable customer acceptance is to set the OM system parameter: Enable Fulfillment Acceptance.
- The second step of the customer acceptance setup is to define customer acceptance deferral reasons in the AR revenue management setup.Rate this question:
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- 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.
Correct Answer(s)
A. Assign a credit rule to the order type being used.
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.Explanation
To enable system credit checking on an order, three necessary setup steps are as follows:
1. Assign a credit rule to the order type being used: This ensures that a specific credit rule is applied to the order type, allowing credit checking to take place.
2. Use a payment term for which the Credit check box is enabled: By selecting a payment term with the Credit check box enabled, the system will perform credit checks based on the customer's credit limit and outstanding balance.
3. Define the customer profile so that the Credit check box is selected: By selecting the Credit check box in the customer profile, the system will consider this customer for credit checking during order processing.Rate this question:
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- 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.
Correct Answer(s)
C. Retry workflow activities are possible in batch mode via concurrent program.
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.Explanation
The first correct statement is that retry workflow activities are possible in batch mode via a concurrent program. This means that when there is an error in the workflow, it can be retried in batch mode using a concurrent program.
The second correct statement is that 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. This means that when an error occurs in a specific activity related to a ship line, and the line has already progressed and the delivery detail is closed, the status will be displayed as Notify instead of Retry.Rate this question:
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- 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
Correct Answer
D. After the Receipt Line Deliver transactionExplanation
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.Rate this question:
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- 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
Correct Answer
E. Receipt by Shipment NumberExplanation
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.Rate this question:
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- 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.
Correct Answer(s)
E. Create a separate subinventory to stock goods from the local source.
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.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.Rate this question:
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- 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
Correct Answer
D. Receipts/deliveries, ATP supply, and planning supply informationExplanation
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.Rate this question:
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- 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
Correct Answer(s)
A. Item information
B. UOM informationExplanation
Oracle Payables, Receivables, and Costing applications receive two pieces of information from the Inventory module: Item information and UOM (Unit of Measure) information. Item information includes details about the products or items being stocked in the inventory, such as their names, descriptions, and attributes. UOM information refers to the measurement units used to quantify the items, such as pounds, liters, or pieces. These pieces of information are crucial for accurate tracking of inventory, pricing, and financial transactions within the Oracle ecosystem.Rate this question:
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- 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.
Correct Answer
D. (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.Rate this question:
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- 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
Correct Answer
C. Exponential Smoothing with Trend Enhanced Forecasting, AlpHa and Beta CoefficientsExplanation
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.Rate this question:
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- 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
Correct Answer
C. Both trend and seasonal demand patterns are equal to zeroExplanation
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.Rate this question:
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- 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)
Correct Answer(s)
A. Will be best for the current period
D. Will result from comparing five forecast methodsExplanation
Focus Forecasting assumes that the forecasting method that worked best for the previous period will be best for the current period. It also assumes that the forecasting method will result from comparing five forecast methods. This means that the method that yielded the best results in the previous period will be chosen for the current period, after comparing it with four other forecast methods.Rate this question:
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- 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
Correct Answer
E. Records in the Purchase Order Requisition interface tableExplanation
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.Rate this question:
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- 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
Correct Answer
C. Safety Stock Quantity, Inventory Planning Method set to Reorder Point, Forecast Quantity, Carrying Cost, and Order CostExplanation
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.Rate this question:
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- 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)
Correct Answer
B. Demand Cutoff DateExplanation
Including the Demand Cutoff Date in the min-max planning report would be the suggested option. This date helps to limit the inclusion of customer orders in the report, ensuring that only the relevant demand is considered for planning purposes. By setting a cutoff date, the customer can avoid including excessive customer orders that may not be feasible or relevant for planning the inventory levels.Rate this question:
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- 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).
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.Rate this question:
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- 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
Correct Answer
B. The average loss of material during manufacturing or storageExplanation
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.Rate this question:
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- 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.
Correct Answer(s)
A. Kanban replenishment signals are manual.
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.Explanation
Kanban replenishment signals are manual means that the signals to replenish inventory are triggered by manual actions or requests. 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. This allows for monitoring and maintaining inventory levels in nontracked subinventories by comparing the actual counts with the minimum quantities specified.Rate this question:
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- 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
Correct Answer
C. Replenishment countingExplanation
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.Rate this question:
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- 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
Correct Answer
A. At the component levelExplanation
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.Rate this question:
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- 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
Correct Answer
A. An unlimited number of namesExplanation
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.Rate this question:
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- 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
Correct Answer
C. Performed at the inventory organization or individual subinventory levelExplanation
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.Rate this question:
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- 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.
Correct Answer(s)
A. The hit/miss% for the Class overrides the hit/miss% of the cycle count header.
C. An ABC Analysis can be compiled for nonasset (expense) subinventories for which quantities are trackeD.
F. Positive and negative tolerances can be entered for each class, which will override the tolerance at the cycle count header level.Explanation
The hit/miss% for the Class overrides the hit/miss% of the cycle count header because the hit/miss% is specific to each class and takes precedence over the overall hit/miss% of the cycle count header. An ABC Analysis can be compiled for nonasset (expense) subinventories for which quantities are tracked because the analysis can be used to determine the value and importance of items in any type of subinventory, including non-quantity-tracked subinventories. Positive and negative tolerances can be entered for each class, which will override the tolerance at the cycle count header level, allowing for more specific tolerance levels for different classes.Rate this question:
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- 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
Correct Answer(s)
B. For all subinventories
E. For a specific subinventory
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.
Correct Answer(s)
A. Void unused or lost tags.
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.Explanation
The five valid steps in defining a Physical Inventory are: void unused or lost tags, take a snapshot of system on-hand quantities, approve or reject Physical Inventory adjustments based on approval tolerances, automatically post adjustments to inventory balances and general ledger accounts, and define a Physical Inventory for your whole warehouse or subinventories within your warehouse. These steps ensure that the inventory is accurately accounted for, adjustments are properly reviewed and approved, and the inventory balances and general ledger accounts are updated accordingly.Rate this question:
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- 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.
Correct Answer
D. 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.Rate this question:
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- 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.
Correct Answer(s)
B. It can contain a count for a group of a given item.
D. It is unique for every stock locator/item/lot number/serial number combination.Explanation
The first statement, "It can contain a count for a group of a given item," is correct because a physical inventory tag can be used to record the count of multiple items within a specific group. This allows for efficient tracking and management of inventory.
The second statement, "It is unique for every stock locator/item/lot number/serial number combination," is also correct because each physical inventory tag is assigned a unique identifier that corresponds to a specific stock locator, item, lot number, or serial number combination. This ensures accurate identification and tracking of inventory items during the physical inventory count process.Rate this question:
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- 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
Correct Answer
B. Holds the cycle count adjustment for approval and posts it after approvalExplanation
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.Rate this question:
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- 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
Correct Answer
A. Automatically approves and posts the cycle count adjustmentExplanation
When the actual count falls within tolerance, Inventory automatically approves and posts the cycle count adjustment.Rate this question:
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- 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
Correct Answer
C. Holds the cycle count adjustment for a recount and does not post the adjustmentExplanation
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.Rate this question:
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- 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
Correct Answer(s)
C. pHysical Inventory Counts Report
E. Cycle Counts Pending Approval ReportExplanation
The Physical Inventory Counts Report provides details on pending inventory adjustments for a count. It shows the current inventory counts and any discrepancies between the counted quantity and the expected quantity. The report helps identify items that need adjustment.
The Cycle Counts Pending Approval Report also provides details on pending inventory adjustments for a count. It lists the cycle counts that have been completed but are awaiting approval. The report helps track the progress of cycle counts and ensures that adjustments are properly reviewed and approved before being finalized.Rate this question:
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- 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
Correct Answer
D. Cycle Count Entries and Adjustments ReportExplanation
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.Rate this question:
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- 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.
Correct Answer(s)
B. The Cost Manager interface manager must be active.
D. 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.Rate this question:
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- 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
Correct Answer
D. A numberExplanation
To ensure successful processing of the Import Cycle Count Entries from Open Interface concurrent program consistently, the client should use a specific numerical value for the profile option INV: CCEOI Commit Point. This numerical value will determine the frequency at which the program commits the cycle count entries. By setting a suitable numerical value, the client can ensure that the program commits the entries at the desired intervals, allowing for accurate and efficient processing of the cycle counts.Rate this question:
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- 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
Correct Answer
C. To set default values for the Import Cycle Count Entries from Open Interface concurrent programExplanation
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.Rate this question:
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- 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
Correct Answer
D. Both items with on-hand quantity and items costedExplanation
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.Rate this question:
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- 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.
Correct Answer(s)
B. Link an ABC Compile to an ABC Group.
D. 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.Rate this question:
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