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Oracle Fusion Cloud Applications SCM Foundations Associate - Rel 1 Sample Questions (Q30-Q35):
NEW QUESTION # 30
Which function does the Global Order Promising component serve in Oracle Fusion Cloud SCM?
- A. It provides real-time order promising based on supply and demand constraints.
- B. It focuses only on local supplier availability.
- C. It guarantees order fulfillment within 24 hours.
Answer: A
Explanation:
Global Order Promising (GOP) in Oracle Fusion Cloud SCM provides real-time order promising by evaluating supply and demand constraints across the enterprise, ensuring accurate delivery commitments. Option A is incorrect as GOP considers global, not just local, availability. Option C is false-it doesn't guarantee a 24-hour fulfillment but provides feasible timelines. This enhances customer satisfaction and planning accuracy.
NEW QUESTION # 31
What is the role of automation in creating POs from contract fulfillment in Oracle Fusion Cloud Procurement?
- A. It facilitates the approval process by routing POs to the appropriate approvers, based on invoice rules and limits.
- B. It enhances supplier qualification by providing visibility into supplier responses.
- C. It ensures that POs are created accurately based on contract terms, reducing manual errors, and improving efficiency.
Answer: C
Explanation:
In Oracle Fusion Cloud Procurement, automation plays a critical role in creating purchase orders (POs) from contract fulfillment by ensuring that POs are generated directly from agreed contract terms with high accuracy and minimal manual intervention. This process leverages predefined contract data-such as item details, pricing, quantities, and delivery schedules-to populate POs automatically, reducing errors like incorrect pricing or quantities that often occur in manual entry. For instance, if a contract specifies 100 units of a product at $10 each, automation ensures the PO reflects this exactly, bypassing the need for manual rekeying. Option A is incorrect because routing POs for approval is a subsequent step, not the primary role of automation in PO creation. Option C is unrelated, as supplier qualification pertains to evaluating suppliers, not PO generation. This automation improves efficiency by speeding up the procurement cycle, ensures compliance with contract terms, and frees procurement staff to focus on strategic tasks rather than clerical work. It also integrates with supplier collaboration tools to confirm details, further enhancing accuracy.
NEW QUESTION # 32
What role does the Inventory Management function play in Oracle Fusion Cloud SCM?
- A. It manages only supplier shipments, not warehouse stock.
- B. It focuses on reducing supplier costs instead of stock levels.
- C. It ensures optimal inventory levels by tracking stock movement and availability.
Answer: C
Explanation:
Inventory Management in Oracle Fusion Cloud SCM ensures optimal inventory levels by tracking stock movement, availability, and replenishment needs across warehouses and supply chains. It monitors quantities on hand, in transit, and on order, using real-time data to prevent overstocking or stockouts. For instance, if a product's stock drops below a reorder point, the system triggers a replenishment alert. Option A is incorrect-reducing supplier costs is a procurement goal, not Inventory Management's focus, which is stock optimization. Option B is wrong as it manages warehouse stock, not just supplier shipments. This function balances inventory costs with service levels, supporting efficient operations and customer satisfaction by ensuring products are available when needed without tying up excess capital.
NEW QUESTION # 33
What is the primary purpose of the Predict Demand process in Oracle Fusion Cloud SCM?
- A. It eliminates the need for supplier collaboration.
- B. It uses machine learning and statistical forecasting to predict demand.
- C. It guarantees same-day delivery for all orders.
- D. It focuses only on local inventory availability.
Answer: B
Explanation:
The Predict Demand process (B) in Oracle Fusion Cloud SCM aims to forecast customer demand using advanced tools like machine learning and statistical forecasting. Machine learning analyzes historical sales, market trends, and external factors (e.g., weather or economic indicators) to predict future demand with high accuracy, while statistical forecasting provides a baseline using mathematical models like moving averages. For example, it might predict a 20% increase in demand for air conditioners in summer based on past patterns. Option A is incorrect-demand prediction isn't limited to local inventory but informs broader supply planning. Option C is false; supplier collaboration remains essential to fulfill predicted demand. Option D is unrealistic-Predict Demand focuses on forecasting, not delivery guarantees. This process ensures businesses can proactively adjust inventory and production, reducing costs and improving service levels.
NEW QUESTION # 34
Which feature in Oracle Fusion Cloud SCM ensures optimal inventory levels by predicting demand and adjusting supply plans?
- A. Supplier Qualification.
- B. Replenishment Planning.
- C. Cost Accounting.
- D. Manufacturing Execution.
Answer: B
Explanation:
Replenishment Planning (C) in Oracle Fusion Cloud SCM ensures optimal inventory levels by predicting demand and adjusting supply plans proactively. Using forecasts-e.g., expecting 300 units next month-it triggers replenishments to maintain stock (e.g., ordering 250 units when levels hit 50), avoiding overstock or shortages. Option A (Cost Accounting) tracks costs, not inventory levels. Option B (Supplier Qualification) evaluates suppliers, not stock planning. Option D (Manufacturing Execution) manages production, not replenishment. This feature balances cost and availability, reducing waste (e.g., $5,000 in excess stock) and ensuring service continuity.
NEW QUESTION # 35
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