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QUESTION 21
Which four attributes are item-defining attributes? (Listed first is the functional area, followed by the item defining attribute.) (Choose four.)
A. MPS/MRP Planning/ Planning Method
B. Advanced Pricing / Invoice Enabled
C. Purchasing / Purchased
D. Inventory / Inventory Item
E. Costing/ Costing Enabled
F. Order Management / Customer Orderable

Correct Answer: CDEF
QUESTION 22
You have specified cycle count variance approval tolerances for your cycle count. You have also set the Approval Required option in your cycle count to “If out of tolerance”. If the cycle count quantity entered for your item exceeds the approval tolerance specified, Oracle Inventory _____. (Select one answer)
A. holds the cycle count adjustment for approval and posts it after approval
B. holds the cycle count adjustment for approval and does not post the adjustment after approval
C. holds the cycle count adjustment for a recount and does not post the adjustment
D. automatically approves and posts the cycle count adjustment

Correct Answer: A
QUESTION 23
Which two statements about the Stock Locator flexfield are true? (Choose two.)
A. You have to use the same value set for all the segments of the Stock Locator flexfield.
B. Stock Locator is set up as a descriptive flexfield.
C. You cannot have a . character in your locator name.
D. You have the flexibility to set up segments of the stock locator as mandatory or not mandatory.
E. Stock Locator is set up as a key flexfield.

Correct Answer: DE
QUESTION 24
Which three statements are true regarding Inventory replenishment methods? (Choose three.)
A. Min-max planning considers carrying cost.
B. When you define an item, you can specify both reorder point planning and min-max planning to place limits on the calculated reorder point.
C. Min-max planning can be performed at the subinventory level.
D. Reorder point planning considers order cost.
E. Reorder point planning considers replenishment lead time.

Correct Answer: CDE
QUESTION 25
.com is a vending machine manufacturer. .com wants to track its finished goods by both lot and serial control. They decide to assign serial numbers during shipment to the customer, and lot numbers at the time of receiving the machine into stock. Which setup option needs to be selected?
A. serial number generation at sales order issue
B. full lot control
C. no lot control, and serial number generation predefined
D. full lot control, and serial number generation at sales order issue
E. serial number generation at receipt
F. full lot control and serial number generation at receipt
G. full lot control and no serial number control
Correct Answer: D
QUESTION 26
For performing an ABC analysis, you need to define these three:

Which two are correct actions? (Choose two.)
A. Link an ABC compile to an ABC group.
B. Assign an ABC group to an ABC class.
C. Assign an ABC class to an ABC group.
D. Link an ABC group to an ABC compile.

Correct Answer: AC QUESTION 27
Your customer decided to use min-max planning for some items in specific subinventories. You caution him to not include too many customer orders when he runs the report. What do you suggest he use?
A. ASCP (Advanced Supply Chain Planning)
B. Supply Cutoff Date
C. MRP (Material Requirement Planning)
D. Demand Cutoff Date
E. Supply and Demand Cutoff Dates

Correct Answer: D
QUESTION 28
Which two statements are true about the relationship between a subinventory and a locator ? (Choose two.)
A. Each subinventory can have multiple locators.
B. A subinventory has only one locator. When the locator is inactivated, the subinventory also gets inactivated.
C. You can restrict the subinventory that an item can reside in, by selecting the restrict subinventory flag on the Item. You can restrict the locator that the item can reside in within the subinventory, by selecting the restrict locator flag on the item master.
D. To make a subinventory locator controlled, you have to set the Locator control to Prespecified.
E. Each locator can be associated with multiple subinventories.

Correct Answer: AC
QUESTION 29
Receipt routing options are ____________.
A. direct, inter-organization shipment, standard, inspection required
B. in-transit, standard, inspection required
C. direct, standard, inspection required
D. in-transit, inter-organization shipment, standard, inspection required

Correct Answer: C
QUESTION 30
A customer is in the process of setting up a warehouse in the Oracle system. He wants the whole
warehouse to be a subinventory.
He has bins in the warehouse to store material. He needs to track some high-dollar items by quantity and
the bin in which they reside. He also has some low-dollar parts like nuts and bolts that he needs to track by
quantity, but does not want the overhead of specifying the bin in which they should reside.
What will you do to meet this requirement?

A. Set up the subinventory with Locator control set to Item Level control; for items that should be tracked by bin, set Locator control to Dynamic Entry.
B. Set up the subinventory with Locator control set to Prespecified.
C. Set up the subinventory with Locator control set to Item Level control; for items that should be tracked by bin, set Locator control to None.
D. Set up the subinventory with Locator control set to Dynamic Entry.

Correct Answer: A
QUESTION 31
Your cycle count has the following setup:
Cycle count variance approval tolerances defined; Approval Required option set to “If out of tolerance”;
Automatic Recounts selected with a maximum of three. If the first cycle count actual quantity entered for
your item exceeds the approval tolerance specified, Oracle Inventory ____.

A. holds the cycle count adjustment for approval and posts it after approval
B. holds the cycle count adjustment for a recount and does not post the adjustment
C. automatically approves and posts the cycle count adjustment
D. holds the cycle count adjustment for approval and does not post the adjustment

Correct Answer: B
QUESTION 32
Oracle Inventory interacts with other Oracle applications by sharing information. Choose two pieces of information that Oracle Inventory receives from the Order Management application. (Choose two.)
A. UOM information
B. ATP supply information
C. Reservations information
D. Shipping information
E. On-hand information

Correct Answer: CD
QUESTION 33
Which types of move orders are supported by Oracle Inventory?

A. 2 and 3 only
B. 1, 2 and 3 only
C. 1, 2, 3 and 4
D. 2, 3 and 4 only
E. 1 and 2 only

Correct Answer: B
QUESTION 34
Which three statements are true regarding inventory transactions? (Choose three.)
A. Transaction types identify certain transactions to be included in historical usage calculations for ABC analysis or forecasting.
B. The user can define new transaction actions.
C. A transaction source type is the combination of a transaction type and a transaction action.
D. Transaction types are used to classify a transaction for reporting and querying purposes.
E. The user can define new source types.

Correct Answer: ADE
QUESTION 35
What does it mean when you have a serial number in the mtl_serial_numbers Table with current_status as 6?
A. pending status
B. defined but not used
C. resides in stores
D. resides in intransit

Correct Answer: A
QUESTION 36
Which three statements are true about to ABC analysis and cycle count classes? (Choose three.)
A. The hit/miss% for the class overrides the hit/miss% of the cycle count header.
B. The hit/miss% for the cycle count header overrides the hit/miss% of the class.
C. In ABC analysis, you must always submit for an approval on quantity variance, regardless of the tolerance levels.
D. You can enter positive and negative tolerances for each class which will override the tolerance at the cycle count header level. The tolerances are of two types: quantity and value.
E. You can compile an ABC analysis for a subinventory that is defined as a non-quantity-tracked subinventory.
F. You can compile an ABC analysis for non-asset (expense) subinventories for which you track quantities.

Correct Answer: ADF
QUESTION 37
Which four statements are true about an average costing organization that does not have WMS (Warehouse Management System) enabled? (Choose four.)
A. It is possible to receive items into your organization from a general ledger account number that is different for each category of items.
B. Either an internal requisition or an internal sales order is always needed for inventory organization transfers.
C. All inventory transactions validate the inventory controls that are enabled for the item.
D. It is not possible to receive items into your organization from a general ledger account number that is different for each category of items.
E. A subinventory transfer transaction transfers the quantity and value of an inventory item.
F. Subinventory transfer transactions transfer an inventory value from one account to another.
G. A transaction can change the inventory value of an organization and the inventory value of a subinventory.

Correct Answer: ACEG
QUESTION 38
If an internal order is not required for the transfer between two organizations, then an interorganizational transfer of material (either direct or intransit type) between the inventory organizations applies to:

A. both 1 and 2
B. 2 only
C. 1 only

Correct Answer: A
QUESTION 39
An item is defined with one of the units of measure (UOM) in the Quantity UOM class. This item is always purchased in pounds, which is in the Weight UOM class. For shop floor (internal) issue, the item is issued in one of the units of measure in the Volume UOM class. When it is sold to a customer, it is sold in one of the Quantity units of measure. What setup is needed to transact the item in the organization?
A. standard conversion for the units of measure in the Quantity, Weight and Volume UOM classes, necessary intraclass and interclass conversion
B. standard conversion for the units of measure the Quantity, Weight and Volume UOM classes, and interclass conversion
C. interclass and intraclass conversion
D. standard conversion for the units of measure in the Quantity, Weight and Volume UOM classes, and intraclass conversion
E. standard conversion for the units of measure in the Quantity, Weight and Volume UOM classes

Correct Answer: A
QUESTION 40
Which four statements are true about defining physical inventories? (Choose four.)
A. Physical inventory suspends other transactions; all other inventory transactions will fail at the inventory interface from the time the snapshot is taken until the physical count is either accepted or rejected.
B. Physical counts are reviewed, and either accepted or rejected as a whole.
C. There is no tolerance limit set on the Physical Inventory; it is a user’s decision to accept or reject the entire count.
D. Physical inventory takes a dynamic count of inventory on hand, accepts inventory transactions during the inventory count process, and makes inventory adjustments against the dynamic quantities.
E. Physical inventory takes a snapshot of inventory on hand at the beginning of the process; all adjustments are made against the snapshot quantity.
F. You can define multiple physical inventories to count selected portions of your inventory, or you can count your total inventory.

Correct Answer: ABEF
QUESTION 41
The ATP (Available to Promise) algorithm uses three time fences. They are PAST DUE SUPPLY, PAST DUE DEMAND and _____.
A. User Defined Lead Time
B. Planning Horizon Time
C. Finite Supply Time
D. Infinite Supply Time
E. Accumulative Lead Time

Correct Answer: D
QUESTION 42
Which statement is true about an inventory organization that is set up under a multiorganization structure in Oracle Inventory?
A. Each inventory organization under different business units or sets of books should be under a different installation of Oracle Applications.
B. An inventory organization exists under a distinct set of books, operating unit and legal entity.
C. All inventory organizations should be under the same operating unit.
D. All inventory organizations should be under the same set of books.
E. The same inventory organization can be under different sets of books, operating units and legal entities.

Correct Answer: B
QUESTION 43
A customer produces stents at several factories that are set up as inventory organizations. The company needs the ability to uniquely identify each stent and know which factory produced it. Regulations require that each stent be identified by 16-characters. What would you do to meet this requirement?
A. Set up serial control, by using the prefix for the factory, and a starting serial number of 15 characters. Set Uniqueness to Across Organizations.
B. Use lot control, by using the prefix for the factory, and total length of 16 characters. Set Uniqueness to None.
C. Use lot control, by using the prefix for the factory, and total length of 15 characters. Set Uniqueness to None.
D. Set up serial control, by using the prefix for the factory, and a starting serial number of 16 characters. Set Uniqueness to Across Organizations.

Correct Answer: A
QUESTION 44
Which three values are applicable for the Transaction profile option Miscellaneous Issue and Receipt? (Choose three.)
A. Online Processing
B. Background Processing
C. Concurrent Processing
D. Form-Level Processing

Correct Answer: ABC
QUESTION 45
Items in the Length category are defined with the primary Unit of Measure (UOM) as “Each”. These items are purchased in UOM as Roll, and sold in UOM as Box. Quantity is the UOM class for Each, Roll and Box units of measure. Each is the base unit for the Quantity UOM class. Every item in the Length category has its own conversion factor when it is converted from Roll to Box. What setup is needed to transact these items for generating purchase orders, and the issue and receipt of material?
A. standard conversion between Box to Each and Roll to Each and interclass conversion between Box to Each and Roll to Each for the items in Length category
B. interclass conversion between Box to Each and Roll to Each for every item in Length category
C. intraclass conversion between Box to Each and Roll to Each for every item in Length category
D. intraclass conversion between Box to Roll for the items in Length category
E. standard conversion between Box to Each and Roll to Each
F. standard conversion between Box to Roll
G. standard conversion between Box to Each and Roll to Each and intraclass conversion between Box to Each and Roll to Each for the items in Length category
Correct Answer: C
QUESTION 46
Which three are true about the Move Order process? (Choose three.)
A. If no approvals are required in your organization, set the Inventory organization parameters Timeout Period to 0 and the Timeout Action to Approve Automatically.
B. Replenishment and pick wave move orders are pre-approved.
C. Requisition and pick release orders are pre-approved.
D. If no planner is specified for the item, the requisition line is automatically approved.

Correct Answer: ABD
QUESTION 47
View the Exhibit and examine the organization structure. You are leading a discussion with your client about the Item Master Organization setup. Identify three considerations that would be important for your client. (Choose three.) Exhibit:

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