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You are moving items from locator A to locator B within the same Inventory organization. Which two types of inventory transactions are required? (Choose two.)
A. Move Order
B. Locator transfer
C. Subinventory transfer
D. WIP component Issue
E. Miscellaneous Receipt
F. WIP assembly completion
G. Interorganization transfer direct
Correct Answer: AC
What two conditions prevent you from reserving the Inventory? (Choose two.)
A. The inventory module is installed as Shared.
B. The items have a nonreservable material status.
C. The Inventory is in a Standard Cost inventory organization.
D. The Inventory is in an Average Cost inventory organization.
E. The reservation will cause the on-hand quantity to be negative.
Correct Answer: BE
Your client has inventory organizations that belong to different operating units. All Items are manufactured in one operating unit and shipped to distribution warehouses that belong to other operating units. On an exception basis, transfers may
be arranged between distribution warehouses in different operating units.
All transfers between operating units are at the shipping organization\’s standard cost plus a transfer charge percentage.
Identify three inventory setup steps that are required for allowing the receiving inventory organization to correctly process receipts from inventory organizations belonging to another operating unit. (Choose three.)
A. Define an Intercompany Price List.
B. Define the correct Unit of Measure conversions for Dual UOM.
C. Define Intercompany Relations for each pair of operating units.
D. Define a separate Item Master Organization for each operating unit.
E. Define Receiving Options for each inventory organization in each operating unit.
F. Define Shipping Networks for each pair of shipping and receiving inventory organizations.
G. Ensure that the Receiving Options are uniform for ail inventory organizations in each operating unit.
Correct Answer: CEF
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
Beyond the shelf life days, active lots become expired lots. Expired lots______.
A. Can be reserved
B. Are not allowed to do subinventory transfer
C. Are not included in Inventory valuation reports
D. Cannot be transacted and included in on-hand quantities
E. Are not included in cycle and physical counting adjustments
F. Are not considered as on-hand supply for min-max and re-order point planning
Correct Answer: F
Which three statements are true about the item master? (Choose three.)
A. It is possible to copy items across item master organizations.
B. The item master organization is the centralized repository for ail items in different organizations.
C. It is possible to associate items in one item master organization with another item master organization.
D. When an attribute control is set at the item master level, updates are not allowed at the item or organization level.
E. There is no functional or technical difference between the item master organization and other organizations while transacting on an item.
F. When an attribute control is set at the item master level, updates can still be made at the item or organization level but these updates would not propagate back up to the item master level.
Correct Answer: BDE
Select three true statements about inventory reservations. (Choose three.)
A. A reservation is a link between a supply source and a demand source.
B. For on-hand Inventory supply, there is only one type of reservation called high-level reservation.
C. For on-hand inventory supply, there is only one type of reservation called low-level reservation.
D. Reservations can be created only by Oracle applications or via forms. They cannot be imported from third-party applications.
E. A reservation creates a permanent data link between a supply source and a demand source, and represents a guaranteed allotment of material to a specified demand source.
F. Item reservations prevent the allocation of material you previously set aside for a sales order, account, account alias, inventory allotment, user-defined source, process batch components or, Oracle Complex Maintenance and Repair Overhaul work order components.
G. Item reservations allow the allocation of material you previously set aside for a sales order, account, account alias, inventory allotment, user-defined source, process batch components or, Oracle Complex Maintenance and Repair Overhaul work order components as long as the quantity is not negative.
Correct Answer: AEF
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 non local 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 hi 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: EGH
Which three statements are true regarding Inventory replenishment methods? (Choose three.)
A. Min-max planning considers order cost.
B. Min-max planning considers carrying cost.
C. Reorder point planning considers order cost.
D. Reorder point planning considers replenishment lead time.
E. Min-max planning can be performed at the sub inventory level.
F. When an item is defined, both reorder point planning and min-max planning can be specified to Place limits on the calculated reorder point.
Correct Answer: CDE
Select the true statement about Material Status Control.
A. The profile option “IMV: Default Item Status” must be set to Active at the site level to enforce Material Status Control.
B. The profile option “INV: Material Status Support” must be set to Yes at the site level to enforce Material Status Control.
C. The profile option “INV: Transaction Reasons Security” must be set to Yes at the site level to enforce Material Status Control.
D. The profile option “INV: Allow Expense to Asset Transfer” must be set to Yes at the application level to enforce Material Status Control.
Correct Answer: B
An Item has its lot Control attribute set to Full Control.
The Active material status does not have any transaction types related to lot control enabled for material status control, this status is assigned to all lot numbers associated with the item.
The subinventory where the Item\’s lot numbers are all located also has the Active material status.
How will the application respond when a user tries to submit a subinventory transfer transaction?
A. The transaction will be accepted.
B. An error message will be generated.
C. The transaction will be accepted, but will be registered as a transfer to and from the same subinventory.
D. The transaction will be accepted, but the item cost update will have to be processed separately by the user.
Correct Answer: A
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
You created an internal requisition to move material between two organizations. The destination is locator controlled. The shipping network between these two locations has been defined as Direct. The shipment transaction fails.
What could be the reason for the failure?
A. Locator default has not been set up In the transaction default.
B. Internal requisitions cannot be used for Direct shipping networks.
C. You did not indicate the locator of the destination on the requisition.
D. Locator-controlled destinations cannot be used for Direct shipping networks.
Correct Answer: A
Your client does not want to implement account alias issues or receipts. When performing setups, what should you do about the account alias flex field?
A. Define segments, but do not compile.
B. Create at least one alias, compile, then disable the alias.
C. Ignore the account alias flex field because it would not be required.
D. Compile the flex field structure because it is required by Oracle Inventory.
E. Define default account aliases that can be used at a later date but ensure they are disabled now.
Correct Answer: D
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