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Oracle Fusion Cloud Applications SCM Foundations Associate - Rel 1 Sample Questions (Q44-Q49):
NEW QUESTION # 44
What is a key benefit of Supplier Qualification Management in Oracle Fusion Cloud SCM?
- A. It assesses and approves suppliers based on compliance and performance criteria.
- B. It eliminates supplier performance reviews.
- C. It only tracks supplier payments.
Answer: A
Explanation:
Supplier Qualification Management in Oracle Fusion Cloud SCM evaluates and approves suppliers based on predefined compliance and performance criteria, ensuring reliable partnerships. Option A is incorrect as it focuses on payments, not qualification. Option C is wrong-performance reviews are integral to the process. This benefit mitigates risks and ensures quality suppliers.
NEW QUESTION # 45
Which feature in Oracle Fusion Cloud SCM tracks and analyzes manufacturing costs?
- A. Supplier Qualification.
- B. Cost Accounting.
- C. Inventory Management.
- D. Manufacturing Execution.
Answer: B
Explanation:
Cost Accounting (D) in Oracle Fusion Cloud SCM tracks and analyzes manufacturing costs, including materials, labor, and overhead, to support financial reporting and decision-making. For example, it might break down a $10,000 production run into $6,000 materials, $3,000 labor, and $1,000 overhead, revealing cost drivers. Option A (Manufacturing Execution) tracks production activities but doesn't analyze costs. Option B (Supplier Qualification) assesses suppliers, not manufacturing expenses. Option C (Inventory Management) monitors stock, not cost details. Cost Accounting provides granular insights, enabling cost reduction strategies and accurate profitability analysis, essential for financial health.
NEW QUESTION # 46
Which process in Oracle Fusion Cloud SCM ensures that inventory levels are maintained efficiently?
- A. Supplier Qualification.
- B. Cost Accounting.
- C. Replenishment Planning.
- D. Manufacturing Execution.
Answer: C
Explanation:
Replenishment Planning (D) in Oracle Fusion Cloud SCM ensures inventory levels are maintained efficiently by predicting demand and adjusting supply plans to replenish stock proactively. It uses forecasts and safety stock rules-e.g., ordering 300 units when stock falls to 50 and demand is expected to rise-to prevent shortages or excess inventory. Option A (Supplier Qualification) focuses on supplier evaluation, not inventory maintenance. Option B (Cost Accounting) tracks financials, not stock levels. Option C (Manufacturing Execution) manages production, not replenishment. Replenishment Planning optimizes inventory turnover, reduces carrying costs, and ensures product availability, making it a proactive inventory management tool.
NEW QUESTION # 47
What is the primary function of the Order Promising process in Oracle Fusion Cloud SCM?
- A. It guarantees same-day shipping for all orders.
- B. It only manages orders for direct-to-customer deliveries.
- C. It eliminates the need for supplier collaboration.
- D. It provides accurate order commitment dates based on supply and demand availability.
Answer: D
Explanation:
The Order Promising process (A) in Oracle Fusion Cloud SCM, primarily through Global Order Promising (GOP), provides accurate order commitment dates by analyzing real-time supply (inventory, production capacity) and demand (existing orders, forecasts) data. For instance, if a customer orders 50 units and only 30 are in stock with a 2-day production lead time, it commits to delivery in 2 days, not immediately. Option B is incorrect-it handles all order types (B2B, internal), not just direct-to-customer. Option C is false-no system can universally guarantee same-day shipping; commitments depend on constraints. Option D is wrong-supplier collaboration is often required to fulfill promises. This process enhances customer trust by avoiding overpromising, optimizes resource allocation, and integrates with supply chain planning for seamless execution.
NEW QUESTION # 48
Which metric is used to measure the effectiveness of the Demand to Management OMBP?
- A. Inventory Turnover.
- B. Forecast Accuracy.
- C. Customer Acquisition Cost.
- D. Supplier Lead Time.
Answer: B
Explanation:
Forecast Accuracy (C) measures the effectiveness of the Demand to Management OMBP by comparing predicted demand to actual demand, reflecting how well the process anticipates market needs. For example, if a forecast predicts 1,000 units and actual sales are 950, accuracy is 95%, indicating strong performance. Option A (Customer Acquisition Cost) is a marketing metric, unrelated to demand planning. Option B (Supplier Lead Time) assesses supplier performance, not forecasting. Option D (Inventory Turnover) measures stock movement, an outcome influenced by forecasting, not a direct metric. Accurate forecasts drive efficient inventory and production planning, reducing costs (e.g., avoiding $10,000 in overstock) and ensuring customer satisfaction.
NEW QUESTION # 49
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