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Oracle Fusion Cloud Applications SCM Foundations Associate - Rel 1 Sample Questions (Q37-Q42):
NEW QUESTION # 37
What is a key advantage of the Production Order to Cost Update OMBP in Oracle Fusion Cloud SCM?
- A. It enhances customer relationship management, leading to effective cost analysis.
- B. It automates the production process, requiring minimal human supervision.
- C. It provides real-time cost updates, ensuring immediate financial benefits.
- D. It provides accurate cost calculations, leading to better decision-making and improved profitability.
Answer: D
Explanation:
The Production Order to Cost Update process within Oracle Manufacturing Business Process (OMBP) in Oracle Fusion Cloud SCM ensures accurate cost calculations by capturing and updating costs associated with production orders, such as materials, labor, and overhead. This accuracy supports better decision-making and improves profitability by enabling precise cost analysis and pricing strategies. Option A is irrelevant as it ties to CRM, not cost updates. Option B exaggerates automation-human oversight remains necessary. Option D focuses on real-time updates, which is secondary to the primary benefit of accuracy emphasized in Oracle documentation.
NEW QUESTION # 38
What is the role of the Global Order Promising feature in Oracle Fusion Cloud SCM?
- A. It eliminates the need for supplier collaboration.
- B. It focuses only on local inventory availability.
- C. It provides real-time order commitment dates based on supply and demand constraints.
- D. It guarantees same-day delivery for all orders.
Answer: C
Explanation:
Global Order Promising (C) provides real-time order commitment dates by analyzing supply (e.g., inventory, production) and demand (e.g., orders, forecasts) constraints enterprise-wide. For instance, if 100 units are requested and 70 are available with a 3-day lead time, it commits to 3 days. Option A is false-no universal same-day guarantee exists. Option B is incorrect-supplier data often informs promises. Option D is wrong-it considers global, not just local, availability. This feature ensures reliable promises, reduces cancellations, and aligns customer expectations with operational capacity.
NEW QUESTION # 39
How does embedding Oracle Method Based Practices (OMBPs) in Starter Configurations benefit Oracle Fusion Applications implementations?
- A. Allows third-party vendors to access and modify configurations.
- B. Enables fully customized setup based on individual customer requirements.
- C. Provides a standard configuration that supports solution-led implementation of Oracle Fusion Applications.
Answer: C
Explanation:
Embedding Oracle Method Based Practices (OMBPs) in Starter Configurations (C) provides a prebuilt, standard configuration that streamlines Oracle Fusion Applications implementations using a solution-led approach. These configurations incorporate best practices-e.g., predefined workflows for demand planning-reducing setup time and ensuring consistency. For instance, a company can deploy SCM modules with optimized settings out of the box, customizing only where necessary. Option A is incorrect-third-party access isn't a focus; security restricts modifications. Option B is partially true but misses the point-OMBPs standardize first, then allow customization, not the reverse. This approach accelerates deployment, lowers costs, and leverages Oracle's expertise for reliable outcomes.
NEW QUESTION # 40
What is the primary function of Receipt Accounting in Oracle Fusion Cloud SCM?
- A. It eliminates the need for cost accounting.
- B. It records the receipt of goods and services, creating accounting entries for financial reporting.
- C. It ensures supplier invoices are paid on time.
- D. It validates contract terms for procurement.
Answer: B
Explanation:
Receipt Accounting (D) in Oracle Fusion Cloud SCM records the receipt of goods and services, generating accounting entries that reflect these transactions for financial reporting and cost tracking. When a shipment of 500 units arrives, Receipt Accounting logs the event, assigns costs (e.g., $5,000), and creates entries like "Inventory Debit" and "Accounts Payable Credit," ensuring financial accuracy. Option A is incorrect-timely invoice payment is a downstream accounts payable process, not Receipt Accounting's role. Option B is false-contract validation occurs in procurement, not here. Option C is wrong-Receipt Accounting feeds into Cost Accounting, enhancing, not eliminating it. This function ensures compliance with accounting standards, provides visibility into goods received, and supports accurate financial statements, bridging physical and financial supply chain activities.
NEW QUESTION # 41
Which feature in Oracle Fusion Cloud SCM ensures optimal inventory levels by predicting demand and adjusting supply plans?
- A. Replenishment Planning.
- B. Cost Accounting.
- C. Supplier Qualification.
- D. Manufacturing Execution.
Answer: A
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 # 42
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