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Oracle Fusion Cloud Applications SCM Foundations Associate - Rel 1 Sample Questions (Q35-Q40):

NEW QUESTION # 35
What role does the Inventory Management function play in Oracle Fusion Cloud SCM?

A. It manages only supplier shipments, not warehouse stock.
B. It ensures optimal inventory levels by tracking stock movement and availability.
C. It focuses on reducing supplier costs instead of stock levels.

Answer: B

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 # 36
Which process in Oracle Fusion Cloud SCM ensures that inventory levels are maintained efficiently?

A. Supplier Qualification.
B. Replenishment Planning.
C. Cost Accounting.
D. Manufacturing Execution.

Answer: B

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 # 37
What is the primary purpose of the Supplier Collaboration feature in Oracle Fusion Cloud Procurement?

A. It eliminates the need for supplier performance reviews.
B. It automates the creation of supplier contracts.
C. It restricts suppliers from accessing invoice details.
D. It allows suppliers to view and respond to purchase orders in real time.

Answer: D

Explanation:
The Supplier Collaboration feature (D) in Oracle Fusion Cloud Procurement, often via the Supplier Portal, allows suppliers to view and respond to purchase orders (POs) in real time, fostering efficient communication. Suppliers can access PO details (e.g., 500 units due next week), confirm acceptance, or propose adjustments instantly, reducing delays. Option A is incorrect-performance reviews remain necessary, supported by collaboration data. Option B is false-contract creation is a separate process, not automated here. Option C is wrong-suppliers can view invoices and POs, not be restricted. For example, a supplier might use this feature to confirm a PO and flag a shipment delay, enabling proactive buyer adjustments. This real-time interaction strengthens partnerships, improves visibility, and accelerates procurement cycles.

NEW QUESTION # 38
Which feature in Oracle Fusion Cloud SCM ensures optimal inventory levels by tracking stock movement?

A. Supplier Qualification.
B. Inventory Management.
C. Cost Accounting.
D. Manufacturing Execution.

Answer: B

Explanation:
Inventory Management (D) in Oracle Fusion Cloud SCM ensures optimal inventory levels by tracking stock movement-receipts, transfers, and consumption-and maintaining availability data across warehouses. For example, if stock drops below a reorder point (e.g., 100 units), it triggers replenishment to avoid stockouts while preventing overstocking (e.g., holding 1,000 units when demand is 200). Option A (Supplier Qualification) evaluates suppliers, not inventory levels. Option B (Manufacturing Execution) tracks production, not overall stock. Option C (Cost Accounting) analyzes costs, not physical stock movement. Inventory Management balances service levels with cost efficiency, using real-time data to adjust stock dynamically, critical for operational success and customer satisfaction.

NEW QUESTION # 39
What is a key advantage of the Production Order to Cost Update OMBP in Oracle Fusion Cloud SCM?

A. It provides real-time cost updates, ensuring immediate financial benefits.
B. It enhances customer relationship management, leading to effective cost analysis.
C. It automates the production process, requiring minimal human supervision.
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 # 40
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