Exam Name:

Exam Type:
Exam Code:

Oracle 11i Inventory Management Fundamentals

Oracle
1Z0-221

Total Questions:

131

Question: 1
For which four purposes can Miscellaneous transactions be used? (Choose four.)
A - cycle-count adjustment
B - physical Inventory adjustment
C - decrementing onhand balances from a subinventory
D - adjusting inventory quantity within an inventory organization
E - transferring inventory quantity across inventory organizations
Answer: A, B, C, D
Question: 2
A parts distributor has a facility that includes several buildings that are used as warehouses. All
the warehouses together represent one subinventory in an inventory organization. Each building
is multistoried, and each floor (story) has several rooms within each building that are unique to
that building. All rooms are used to store material, and the distributor needs the ability to store
material and pick material from these rooms. What is the optimum number of segments that you
would recommend for the Stock Locator flexfield?
A-1
B-2
C-3
D-4
Answer: C
Question: 3
At what level can you generate cycle count requests and perform cycle counting under a single
cycle count name?
1. all subinventories
2. a specific subinventory
3. selected set of subinventories
A - 1 only
B - 2 only
C - 3 only
D - 1 or 2 or 3
Answer: D
Question: 4
For which three functional areas can status attribute controls be controlled? (Choose three)
A - Invoicing
B - Services
C - Inventory
D - Receiving
E - Bills of Material
F - MPS/MRP Planning
Answer: A, C, E
Question: 5
Which statement is true regarding inventory transactions?
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Oracle 11i Inventory Management Fundamentals

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Total Questions:

131

A - Transaction reasons can be used in all transaction forms.

B - You can designate by transaction type which transaction reasons are available.
C - You must create at least one user-defined transaction reason for each inventory organization.
Answer: A
Question: 6
XYZ Inc. is a manufacturing organization. All its new manufacturing items need to be defined in
Oracle Engineering. After ECO approval, the item will be transferred to Oracle Manufacturing for
regular manufacturing. The R&D department defined 10 new inventory items in Oracle
Engineering. The items have not been transacted yet, and have not been assigned to any child
organization. Item names need to be changed to begin with the prefix SL. What should you do?
A - Change the setup at the user profile level and rename the items with the prefix with SL.
B - Ignore the 10 existing items, and define another 10 new items, with the correct prefix.
C - Delete the items by clicking the red X on the master-item form, and define the new items with
the prefix SL.
D - Disable the existing 10 items with item status Inactive and define new items with the prefix
SL.
Answer: A
Question: 7
A customer who distributes widgets has a warehouse with locations where material is stored. In
the customers current system, users may receive material on a purchase order and indicate the
location where it should go, but when the material is physically sent to the location, they may
discover that the location is full. What is the best way to solve the problem?
A - Set up each location as a subinventory and select the nettable flag.
B - Set up each location as a subinventory and select the Allow Reservation flag.
C - Set up each location as an organization and create locators in the organization.
D - Set up the locations as locators, and use the capacity tab of the locator definition form to enter
the maximum number of items that can be stored in the locator.
Answer: D
Question: 8
Which two statements are true about the Managing Shipments process? (Choose two.)
A - You can update information pertaining to the shipment header and the shipment lines.
B - You can access all incoming and outgoing in-transit shipments between inventory
organizations associated with the current organization.
C - In-transit shipment between inventory organizations must use the receipt routing specified at
the item, organization, or system level.
D - If you change the Expected Receipt date, you can control whether Purchasing updates
Shipment Supply to reflect the new due date.
Answer: A, B
Question: 9
You need to create a new item template. You want to use the Copy Template window to copy
attributes from an existing template to a new template. Which three statements are true with
respect to creation of an item template? (Choose three.)

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Oracle 11i Inventory Management Fundamentals

Oracle
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Total Questions:

131

A - As a best practice, you should never modify a seeded template.

B - If you copy a template, you cannot make it organization specific.
C - The new template created by this method will be validated upon creation.
D - You can copy only from a single template, you cannot copy from multiple templates.
E - Templates created with this function are not validated until you apply them to an item.
F - You can copy from several templates and select Overwrite, Append or Overwrite Not Null.
Answer: A, E, F
Question: 10
Exhibit:

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.)
A - should not open the accounting period for V1
B - should create the subinventories for V1 the same as M1
C - should not set up Receiving Parameters for V1
D - should use the Item Master Organization as a repository of item definitions, and should not
use that organization to conduct regular business.
Answer: A, C, D
Question: 11
The materials manager has noticed that several items were created and assigned to various
inventory organizations, but the analyst skipped the Copy from Template step. She would like to
know how to correct the items. Which three statements are true? (Choose three.)
A - You can change an organization-level attribute with the Master Item window. If you do this, it
will update the organization-level attribute across all organizations.
B - To update master-level attributes, use the Master Item window. If an attribute is controlled at
the master level, the value of the attribute applies for all organizations to which the item is
assigned.
C - You can use the Item Attribute Copy form to update the value of an item attribute across
multiple organizations in a given organization hierarchy.
D - You can use the Organization Item window to update organization-level item attributes. This
update window updates organization level attributes in your current organization only.
Answer: B, C, D
Question: 12
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Exam Name:
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Oracle 11i Inventory Management Fundamentals

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Total Questions:

131

Which three are true about the item master? (Choose three.)
A - It is possible to copy items across item master organizations.
B - It is possible to associate items in one item master organization with another item master
organization.
C - Oracle recommends that you limit the Item Master role to solely an item definition
organization.
D - It is NOT possible to associate items in one item master organization with another item
master organization.
E - When an attribute control is set at the item master level, updates are not allowed at the
item/organization level.
F - When an attribute control is set at the item master level, updates can still be made at the
item/organization level but these updates will not propagate back up to the item master level.
Answer: C, D, E
Question: 13
XYZ Inc. is a vending machine manufacturer. XYZ 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 - full lot control
B - serial number generation at receipt
C - full lot control and no serial number control
D - serial number generation at sales order issue
E - full lot control and serial number generation at receipt
F - no lot control, and serial number generation predefined
G - full lot control, and serial number generation at sales order issue
Answer: G
Question: 14
Which three are true about the Move Order process? (Choose three.)
A - Requisition and pick release orders are pre-approved.
B - Replenishment and pick wave move orders are pre-approved.
C - If no planner is specified for the item, the requisition line is automatically approved.
D - If no approvals are required in your organization set the Inventory organization parameters
Timeout Period to 0 and the Timeout Action to Approve Automatically.
Answer: B, C, D
Question: 15
What are the components of the Receipt to Issue process?
A - Receiving, Transferring, Issuing
B - Receiving, Work in Process, Shipping
C - Receiving, Work in Process, Order Management
D - Receiving, Purchasing, Work in Process, Shipping
Answer: A
Question: 16

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Exam Name:
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Exam Code:

Oracle 11i Inventory Management Fundamentals

Oracle
1Z0-221

Total Questions:

131

Which two statements are true about the relationship between a subinventory and a locator?
(Choose two.)
A - Each subinventory can have multiple locators.
B - Each locator can be associated with multiple subinventories.
C - A subinventory has only one locator. When the locator is inactivated, the subinventory also
gets inactivated.
D - To make a subinventory locator controlled, you have to set the Locator control to
Prespecified.
E - 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.
Answer: A, E
Question: 17
Which three statements are valid about transaction reasons? (Choose three.)
A - They can be used in all transaction forms.
B - They can be defined by the system administrator only.
C - They can be used with any type of Material Transaction.
D - Reports by transaction reason are available in the application.
Answer: A, C, D
Question: 18
The Exponential Smoothing Forecast (ESF) method should be selected when _____.
A - trend demand patterns are greater than? (alpha)
B - seasonal demand patterns are greater than? (alpha)
C - both trend and seasonal demand patterns are equal to zero
D - both trend and seasonal demand patterns are less than ? (alpha)
E - both trend and seasonal demand patterns are greater than? (alpha)
Answer: C
Question: 19
Your client wants to implement re-order point planning for some of the items in the organization.
They currently use min-max planning. What is the minimum amount of information that needs to
be changed on the items the customer wishes to plan?
A - Safety Stock Quantity, and Forecast
B - Safety Stock Quantity, Inventory Planning Method set to Reorder Point, Forecast Quantity,
Carrying Cost
C - Safety Stock Quantity, Inventory Planning Method set to Reorder Point, Forecast Quantity,
Carrying Cost, and Order Cost
D - Safety Stock Quantity, Inventory Planning Method set to Reorder Point, Forecast Quantity,
Carrying Cost, Order Cost, and Maximum Order Quantity
E - Safety Stock Quantity, Inventory Planning Method set to Reorder Point, Forecast Quantity,
Carrying Cost, Order Cost, and Minimum Order Quantity
Answer: C
Question: 20

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Exam Name:
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Exam Code:

Oracle 11i Inventory Management Fundamentals

Oracle
1Z0-221

Total Questions:

131

Based on the ABC analysis which statement best describes the approach a warehouse manager
should take in securing A, B, and C type inventory items?
A - provide the best protection for A items
B - provide the best protection for B items
C - provide the best protection for C items
D - provide the same level of protection to all items
Answer: A
Question: 21
From which Oracle applications can interorganization receipts be received into an organization?
A - Inventory
B - Order Management
C - both Inventory and Order Management
Answer: A
Question: 22
There are three possible methods to define an Inventory item. Each method requires some
minimum information about the item. Which three options correspond to the three methods, and
list the minimum information required to define an Inventory item for an average costing
inventory organization? (Choose three.)
A - Item, Item Description
B - Item, Item Description, Item template, Item Cost
C - Item, Item Description, Copy existing Inventory item
D - Item, Item Description, Seeded Finished Goods Item template
E - Item, Item Description and Functional usage of the item for setting the attribute control
F - Item, Item Description, Item template, Item Category, Long Description, Item DFF (descriptive
flexfield)
Answer: C, D, E
Question: 23
For performing an ABC analysis, you need to define these three:
1. ABC compile
2. ABC classes
3. ABC assignment group
Which two are correct actions? (Choose two.)
A - Assign an ABC group to an ABC class.
B - Assign an ABC class to an ABC group.
C - Link an ABC group to an ABC compile.
D - Link an ABC compile to an ABC group.
Answer: B, D
Question: 24
Which four statements are true about subinventory transfer transactions for a WMS (Warehouse
Management System) enabled organization? (Choose four.)

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Oracle 11i Inventory Management Fundamentals

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Total Questions:

131

A - Inventory control is validated.

B - A user-defined transaction type can be used.
C - Storage Locator information is optional for a subinventory transfer.
D - Storage Locator information is mandatory for a subinventory transfer.
E - General ledger account needs to be entered during subinventory transfer.
F - Goods can be transferred across storage locators within the subinventory.
G - Inventory value of an item is transferred from one inventory organization to another.
Answer: A, B, D, F
Question: 25
You are doing a cycle count approval transaction. You want the transaction to be processed while
you wait. The control needs to be returned to you after the transaction processing is complete. To
achieve this, you would set the profile option Cycle Count Approval Form to _____.
A - Online Processing
B - Concurrent Processing
C - Background Processing
Answer: A
Question: 26
You are using cycle counting, The quantity variance approval tolerances are specified at these
levels:
Cycle count header level
Cycle count class level
Cycle count item level
If the tolerances are set up at all the levels, which tolerance is considered first by Oracle
Inventory?
A - Cycle count class level
B - Cycle count header level
C - Cycle count item level
D - Inventory organization level
Answer: C
Question: 27
Your client manufactures and sells material from four different manufacturing locations. The client
has these requirements:
Requirement 1:
When a customer calls to return a product, the client needs to know which plant produced the
material.
Requirement 2:
Product manufactured within a plant needs to be tracked uniquely.
What would you do to meet the clients needs?
A - Set up lot control at the organization level and use a prefix.
B - Set up lot control at the item level and a use prefix for the lot number.
C - Create one locator for each product and produce the item to that locator.
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Oracle 11i Inventory Management Fundamentals

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131

D - Create part numbers for each customer to know which part number is ordered.
Answer: A
Question: 28
ABC Inc. has its inventory organizations located across the globe. Finished goods are transferred
between organizations before shipping the goods to the local customers.
ABC has these requirements:
1. Transfer needs to be done by intransit time.
2. Intransit transfer charges are involved.
3. Each shipping method has its own intransit time.
For these requirements, which three are valid considerations or setup steps? (Choose three.)
A - Use interorganization transfer accounts.
B - Use the Direct transfer type in the shipping network.
C - Intransit time for different ship methods cannot be set.
D - Set up a shipping network between the inventory organizations.
E - Assign transfer distance with transfer charges at shipping network.
Answer: A, D, E
Question: 29
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 - Shipping information
C - On-hand information
D - ATP supply information
E - Reservations information
Answer: B, E
Question: 30
At which level can costing methods, such as Standard Costing or Average Costing (Moving
Average costing) be controlled in an Inventory Organization?
1. individual item level
2. subinventory level
3. inventory organization level
A - 1 only
B - 2 only
C - 3 only
D - 1 or 3
E - 1 or 2
F - 2 or 3
G - 1 or 2 or 3
Answer: C
Question: 31
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Exam Name:
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Oracle 11i Inventory Management Fundamentals

Oracle
1Z0-221

Total Questions:

131

Which is the best method for replenishing free stock items that you store on the production floor,
or office supplies kept in departmental cabinets?
A - Cycle counting
B - Min-max planning
C - Replenishment counting
D - Economic Order Quantity (EOQ)
Answer: C
Question: 32
You are required to transact an interorganization transfer for Item A. Before the transfer, you must
determine _____.
A - planning lead times
B - material ownership during transfers
C - and define general ledger accounts to be used in transit
D - and define a shipping network between the organizations
Answer: D
Question: 33
ABC Enterprises is a worldwide organization that builds and ships products all over the globe.
The products its sells are very costly and its customers expect the very highest quality. ABC
wants to be able to inspect the parts it receives from its manufacturing plants, as well as those
that happen to be transferred through interorganizational transfers. The planners require the
inbound shipments be visible and nettable, so they can keep inventory levels low, which is
important in a business that has high-cost items. Which three steps do you take to create a winwin situation for ABC? (Choose three.)
A - Set up the shipping networks as intransit interorganization transfers.
B - Set up a receiving subinventory with Allow Reservations and Asset Sub-inventory set to Yes.
C - Have the system administrator create an alert for the planners to know when the purchase
order has been received.
D - Set up a receiving subinventory with Nettable set to Yes, Allow Reservations set to Yes, and
Asset Subinventory set to Yes.
E - Set up a receiving subinventory with Nettable set to Yes, Allow Reservations set to Yes, and
Asset Subinventory set to No.
F - Set-up a Inspection Sub-inventory with Nettable Checked to Yes, Allow Reservations set to
Yes, and Asset Subinventory set to No.
Answer: A, C, D
Question: 34
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 - resides in stores
C - resides in intransit
D - defined but not used
Answer: A
Question: 35
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Oracle 11i Inventory Management Fundamentals

Oracle
1Z0-221

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131

You are implementing Oracle Inventory in a Make-To-Order manufacturing environment where

there is on-hand inventory for 200 different motors. For these purchasable items, given the proper
profile setup, Min-max can automatically create _____.
A - an expense account
B - an encumbrance account
C - an invoice price variance account
D - records in the Purchase Order Requisition interface table
E - an inventory Accounts Payable accrual account
Answer: D
Question: 36
You have enabled the CHECK ATP option for an item in the Finished Goods subinventory. What
would Oracle Inventory do?
A - check the quantity requested against forecast
B - generate a requisition for the requested quantity
C - permit order booking based on a successful test
D - check the quantity requested against safety stock
E - check the quantity requested against EOQ (economic order quantity)
Answer: C
Question: 37
You define a new item and apply a template that has these values:
Primary Unit of Measure = EACH
Cycle Count Enabled = YES
BOM Allowed = YES
You click the Save icon.
Later, you apply a new template with these values:
No value is specified for BOM Allowed
Cycle Count Enabled = NO
Carrying Cost Percent = 3
You click the Save icon.
What are the attribute values for the item now? (Choose all that apply.)
A - Primary unit of measure = EACH
B - BOM Allowed =Yes
C - Carry Cost Percent = 3
D - Cycle Count enabled = NO
E - Cycle Count enabled = YES
F - No value for BOM Allowed.
Answer: A, B, C, D
Question: 38
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?
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A - Use lot control, by using the prefix for the factory, and total length of 16 characters. Set
Uniqueness to None.
B - Use lot control, by using the prefix for the factory, and total length of 15 characters. Set
Uniqueness to None.
C - Set up serial control, by using the prefix for the factory, and a starting serial number of 16
characters. Set Uniqueness to Across Organizations.
D - Set up serial control, by using the prefix for the factory, and a starting serial number of 15
characters. Set Uniqueness to Across Organizations.
Answer: D
Question: 39
Which four attributes are item-defining attributes? (Listed first is the functional area, followed by
the item defining attribute.) (Choose four.)
A - Purchasing / Purchased
B - Inventory / Inventory Item
C - Costing / Costing Enabled
D - Advanced Pricing / Invoice Enabled
E - MPS/MRP Planning / Planning Method
F - Order Management / Customer Orderable
Answer: A, B, C, F
Question: 40
If you are not satisfied with the ABC class into which an item falls as a result of an automatic ABC
assignment process, how would you most quickly change it?
A - Update the ABC class for the item manually in the ABC assignment.
B - Recompile ABC with a different criterion and reassign the item automatically.
C - Update the breakpoint assigned to the ABC class and reassign the item automatically.
D - Purge the ABC assignment, recompile with different a criterion, and reassign the item
automatically.
Answer: A
Question: 41
Vision Corporation is a semiconductor discrete manufacturing organization. It has its own
manufacturing and distribution centers located globally.
It has these operating Units:
US - USA operating unit
CAN - Canadian operating unit
UK - UK operating unit
MX - Mexican operating unit
IND - India operating unit
SPA - Spain operating unit
FRA - France operating unit
NL - Netherlands operating Unit
GER - Germany operating unit.
These are the inventory organizations that exist in each operating unit:
Inventory Org
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Exam Name:
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----------------------------------------------------VC
(Master Org)
- US
US1
(Child Org)
- US
US2
(Child Org)
- US
CA1
(Child Org)
- CAN
MX1
(Child Org)
- MX
IN1
(Child Org)
- IND
SP1
(Child Org)
- SPA
FR1
(Child Org)
- FRA
NL1
(Child Org)
- NL
GE1
(Child Org)
- GER
Which three statements are true? (Choose three.)
A - Master organization VC cannot be shared across operating units.
B - Items cannot be assigned to inventory organizations across operating units.
C - All inventory organizations do not need to be in the same operating unit to assign items.
D - Items defined in VC organization can be assigned to Us1, US2, NL1 and MX1 inventory
organizations.
E - Organization items in the inventory responsibility assigned to FRA operating unit can be
restricted, to not view the organization items assigned to US2 inventory organization.
F - You can define an item in Ni inventory organization and assign it to GE1 inventory
organization.
Answer: C, D, E
Question: 42
Receipt routing options are _____________.
A - direct, standard, inspection required
B - in-transit, standard, inspection required
C - direct, inter-organization shipment, standard, inspection required
D - in-transit, inter-organization shipment, standard, inspection required
Answer: A
Question: 43
Company ABC has a factory that is set up as an inventory organization with several
subinventories. Each of the subinventories has locators. The factory purchases material using a
purchase order. The person who receives the purchase order does not know which subinventory
and locator the material needs to go to. ABC wants the subinventory and locator to be
automatically populated for that item. Which option would solve the problem?
A - Populate the completion subinventory and locator on the routing for that item.
B - Use the Item Transactions Default form to create default subinventory and locators for the
purchased item.
C - Use the restrict subinventory and restrict locator flag on the Item Master record of that item.
D - Populate the supply subinventory and locator fields on the Item Master record for the
purchased item.
Answer: B
Question: 44
Which four statements are true about an average costing organization that does not have WMS
(Warehouse Management System) enabled? (Choose four.)
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A - All inventory transactions validate the inventory controls that are enabled for the item.
B - A subinventory transfer transaction transfers the quantity and value of an inventory item.
C - Subinventory transfer transactions transfer an inventory value from one account to another.
D - A transaction can change the inventory value of an organization and the inventory value of a
subinventory.
E - Either an internal requisition or an internal sales order is always needed for inventory
organization transfers.
F - It is possible to receive items into your organization from a general ledger account number
that is different for each category of items.
G - It is not possible to receive items into your organization from a general ledger account number
that is different for each category of items.
Answer: A, B, D, F
Question: 45
Which four statements are true about defining physical inventories? (Choose four.)
A - Physical counts are reviewed, and either accepted or rejected as a whole.
B - Physical inventory takes a snapshot of inventory on hand at the beginning of the process; all
adjustments are made against the snapshot quantity.
C - 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.
D - 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.
E - You can define multiple physical inventories to count selected portions of your inventory, or
you can count your total inventory.
F - There is no tolerance limit set on the Physical Inventory; it is a users decision to accept or
reject the entire count.
Answer: A, B, D, E
Question: 46
Which three statements are true about defining an item using a template? (Assume that there are
no Interdependent Attributes.) (Choose three.)
A - You can apply multiple templates to an item.
B - A template can be applied only at the master organization level.
C - A template can be applied at the master or child organization levels.
D - Template application is additive. If you apply a second template to an item, the item will retain
the values of all the attributes that were not enabled by the second template.
E - A template applied to a master item, which has already been assigned to a child organization,
can still update the organization-controlled item.
F - Modifying an item template will automatically update the items that were previously defined
using that template.
G - Template application is exclusive. If you apply a second template to an item, the item will not
retain any values of the prior template.
Answer: A, C, D
Question: 47
Your cycle count has the following setup:

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131

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 - automatically approves and posts the cycle count adjustment
B - holds the cycle count adjustment for approval and posts it after approval
C - holds the cycle count adjustment for a recount and does not post the adjustment
D - holds the cycle count adjustment for approval and does not post the adjustment
Answer: C
Question: 48
You are implementing Oracle Inventory in a Process-Manufacturing environment. The default
profile for the Min-Max Planning Report is deployed. What will be the result?
A - Requisitions will be preapproved.
B - Users must approve requisitions for items that have a limited shelf life.
C - Users must approve requisitions for items with an MSDS (Material Safety Data Sheet).
D - Users must approve requisitions that are inside the items PAST DUE SUPPLY time fence.
E - Users must approve requisitions when the quantity exceeds the item EOQ (Economic Order
Quantity)
Answer: A
Question: 49
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 - interclass and intraclass conversion
B - standard conversion for the units of measure in the Quantity, Weight and Volume UOM
classes
C - standard conversion for the units of measure in the Quantity, Weight and Volume UOM
classes, necessary intraclass and interclass conversion
D - standard conversion for the units of measure the Quantity, Weight and Volume UOM classes,
and interclass conversion
E - standard conversion for the units of measure in the Quantity, Weight and Volume UOM
classes, and intraclass conversion
Answer: C
Question: 50
You specified cycle count measurement error values when you defined your item at the master
item or organization item level. You also specified a cycle count quantity variance approval
tolerance at the cycle count item level. If the actual cycle count quantity for your item differs from
the system on-hand quantity by less than the specified measurement error, Oracle Inventory
_____. (Select one answer)
A - does not consider cycle count approval tolerance but makes a cycle count adjustment

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B - does not consider cycle count approval tolerance and does not make a cycle count
adjustment
C - applies the measurement error to the cycle count approval tolerance before the approval
decision and makes a cycle count adjustment when approved
D - applies the measurement error to the cycle count approval tolerance before the approval
decision and does not make a cycle count adjustment when approved
Answer: C
Question: 51
ABC Corp. wants material in a subinventory to be considered for material planning purposes.
Which set of flags would you set for that subinventory?
A - Nettable, Depreciable
B - Qty Tracked, Nettable
C - Allow Reservation, Nettable
D - Qty Tracked, Include in ATP
Answer: B
Question: 52
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 actual cycle
count quantity entered for your item falls within the approval tolerance specified, Oracle Inventory
______.
A - automatically approves and posts the cycle count adjustment
B - automatically approves but does not post the cycle count adjustment
C - holds the cycle count adjustment for approval and posts it after approval
D - holds the cycle count adjustment for a recount and does not post the adjustment
Answer: A
Question: 53
Which two statements are true regarding Oracle Inventory replenishment methods? (Choose
two.)
A - Kanban represent replenishment signals that are manual.
B - Reorder point planning can be performed at the subinventory level.
C - Min-Max planning considers lead time and is not based on demand projections.
D - Replenishment counting enables you to perform counts for non-tracked subinventories, and
then direct Inventory to check these counts against the minimum quantities that you have
specified.
Answer: A, D
Question: 54
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 - Supply Cutoff Date
B - Demand Cutoff Date
C - Supply and Demand Cutoff Dates
D - MRP (Material Requirement Planning)
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E - ASCP (Advanced Supply Chain Planning)

Answer: B
Question: 55
Which statement is true about a replenishment counting system?
1. You can plan only at the warehouse level.
2. Pre-identification of items is required to use this method.
3. You can plan only at the subinventory level, and the item subinventory relationship needs to be
defined.
A - 1 only
B - 2 only
C - 3 only
D - 1 and 3
E - 1, 2 and 3
Answer: C
Question: 56
For which functional area(s) must item attributes be defined so that an item is just an inventory
item?
A - Inventory only
B - Main and Inventory
C - Main, Inventory and Order Management
D - Inventory, Order Management and Purchasing
E - Main, Inventory, Order Management, Purchasing and Work in Process
Answer: B
Question: 57
Which three statements regarding Inventory forecasting are true? (Choose three.)
A - Focus forecasting can only be generated from historical data.
B - You typically use Focus forecasting to produce single period forecasts.
C - Statistical forecasting can be generated from either historical data or master schedule entries.
D - Statistical forecasting enables you to simulate various methods of calculating demand so that
you can select the best forecasting model.
E - Statistical forecasting enables you to apply exponentially weighted trend and seasonality
factors to predict demand.
Answer: A, B, E
Question: 58
You and the client are working on setting up subinventories for the organization. The client wants
to call the subinventory DAYTONS-20STOCKROOM. The system does not let you create this
subinventory. What is the problem?
A - The subinventory name cannot have the - sign.
B - The subinventory name cannot have numbers in it.
C - The subinventory name cannot have an apostrophe.
D - The subinventory name cannot be longer than 10 characters.

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Answer: D
Question: 59
Which is the key setup required in order to restrict the access to an inventory organization by a
user? (Choose one)
A - System administrator assigns the appropriate responsibility to a user.
B - System administrator sets up a restricted profile value for the user responsibility at the user
level.
C - A superuser sets up the organization access to the inventory organization for the user
responsibility.
D - System administrator sets up an appropriate securing attribute value for the user application
under the user definition.
Answer: C
Question: 60
Assume a simple ABC compile was run for the following three items using Current on hand value
as the compile criterion.
Item 1 On hand quantity = 20, Frozen Cost = $10
Item 2 On hand quantity= 10, Frozen Cost= $15
Item 3 On hand quantity = 5, Frozen Cost = $50
Select the correct sequence of the items for an ABC class.
A - Item1, ltem2, ltem3
B - Item1, ltem3, ltem2
C - Item 2, Item 1, Item 3
D - Item 2, Item 3, Item 1
E - Item 3, Item 2, Item 1
F - Item3, ltem1, ltem2
Answer: F
Question: 61
ABC Corporation has its inventory organizations located in North America, Asia and Europe.
North America Inventory Organizations
----------------------------------------Boston Manufacturing
Seattle Manufacturing
Denver Manufacturing
Europe Inventory Organizations
------------------------------Netherlands
France
Germany
Belgium
Asia Inventory Organizations
--------------------------India
Singapore
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Malaysia
North America manufacturing organizations are the source of material to the other inventory
organizations in Europe and Asia, but for all the Europe inventory organizations, the inventory is
sourced from the Netherlands organization.
Select all the networks that need to be set up to meet this requirement. (Choose all that apply.)
A - between all the European organizations
B - all the European organizations with all the Asian organizations
C - Netherlands organization to all the other European organizations
D - all the North America Inventory organizations with Netherlands organization
E - all the North America Inventory organizations with all the Asian organizations
F - all the North America Inventory organizations with all the European organizations
Answer: C, D, E
Question: 62
MCO Company has implement Oracle E-Business Suite 11i. MCO has been an Oracle customer
since Release 10.7 Character. MCO is a global enterprise and constantly ships good between
organizations for Manufacturing, Repair, Customer Orders, and so on. MCO charges
transportation and handling charges on all interorganization transfers, even across operating
units.
The value that has been transferred recently started to fluctuate widely and erratically. Incorrect
cost transfers have made the companys books out of balance, and their inventory valuation is not
consistent with corporate standards.
Which are four investigative steps that could help you to correct the problem and ensure that
correct, consistent amounts are added to each transaction? (Choose four.)
A - Ensure that the organizations are all standard costing organizations.
B - Check the shipping networks for transfer charges that are a requested value.
C - Check the shipping networks for transfer charges that are a required percentage.
D - Check the shipping networks for transfer charges that are a requested percentage.
E - Run the shipping reports to determine which organizations are causing the problems.
F - Run transaction history report, perform analysis and determine the start day when the
transactions were not to standard, and how much they were off.
G - Setup a keystroke tracing program for all MWA Handheld scanners, to determined exactly
who is keying, and what is being keyed in the interorganization transfers.
Answer: B, D, E, F
Question: 63
You created an internal requisition to move material between two organizations. The destination
is locator-controlled. The shipping network between these two locations has been defined as
Direct. The shipment transaction fails. What could be the reason for the failure?
A - Locator default has not been set up in the transaction default.
B - You did not indicate the locator of the destination on the requisition.
C - Internal requisitions cannot be used for Direct shipping networks.
D - Locator-controlled destinations cannot be used for Direct shipping networks.
Answer: A
Question: 64
A Finished Goods subinventory of name FG has to be set up in several inventory organizations.
Which two are true? (Choose two.)
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A - The same subinventory name FG can be set up in any of the inventory organizations under
the same Oracle Inventory responsibility.
B - The same subinventory name FG CANNOT be set up in several inventory organizations
under the same Oracle Inventory responsibility.
C - The same subinventory name FG can be set up in different inventory organizations IF the
organizations are under different Oracle Inventory responsibilities.
D - The same subinventory name FG can be set up in different inventory organizations,
regardless of the Oracle Inventory responsibilities.
Answer: A, D
Question: 65
To which elements should each inventory organization be linked to complete the accounting
information setup?
A - only a legal entity
B - only a set of books
C - only an operating unit
D - a set of books and a legal entity only
E - an operating unit and a legal entity only
F - a set of books and an operating unit only
G - a set of books, an operating unit and a legal entity
Answer: G
Question: 66
Identify the type of entity against which Oracle Inventory charges a transaction.
A - transaction type
B - transaction source type
C - associated subinventories
D - none
Answer: B
Question: 67
ABC Inc. is an audio CD distribution organization; it is not Warehouse Management System
(WMS) enabled. ABC Inc. wants to identify its inventory items to be combination of its own item
name (which may have up to 30 alphanumeric characters) and the UPC code (which is numeric
and always 12 characters). What is the best way to define the system item flexfield?
A - one segment, format type character, maximum size of 60
B - one segment, format type character, maximum size of 42
C - two segments, the first one with format type character, maximum size of 30 and second with
format type character, maximum size of 12, with Right-Justified and Zero-fill numbers
checkbox checked
D - two segments, the first one with format type character, maximum size of 40 and second with
format type character, maximum size of 12
E - one segment, with format type character, maximum size of 42, with Right-Justified and Zerofill numbers Checkbox checked
Answer: C
Question: 68
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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:
1. the transfer of material between inventory organizations across operating units
2. the transfer of material between inventory organizations within the same operating unit
A - 1 only
B - 2 only
C - both 1 and 2
Answer: C
Question: 69
View the Exhibit.

You are setting up Oracle Inventory for a new client.

The organizational structure consists of one set of books, two legal entities, and three operating
units.
The three operating units have three, one and two inventory organizations respectively.
What is the total number of Oracle Inventory instances required to model this structure?
A-1
B-2
C-3
D-6
Answer: A
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Question: 70
From which Oracle applications can in-transit receipts be received into an organization?
A - Purchasing
B - Purchasing and Work in Process
C - Purchasing and Order Management
D - Purchasing, Inventory, and Work in Process
Answer: A
Question: 71
Which two are supply sources for Supplier and Production inventory replenishment? (Choose
two.)
A - discrete job
B - external sales order
C - replenishment move order
D - internal purchase requisition
E - external purchase requisition
Answer: A, E
Question: 72
What is true about Reorder Point Planning?
1. Suggests an economic order quantity that minimizes the overall procurement cost.
2. Suggests a new order when the physical on-hand quantity plus the expected receipts drops
below safety stock.
3. Does not include forecast demand while calculating the reorder quantity.
4. Includes forecast demand while calculating the reorder quantity.
A - 1 and 3
B - 2 and 3
C - 1 and 4
D - 2 and 4
E - 1, 2 and 3
F - 1, 2 and 4
Answer: C
Question: 73
The ATP (Available to Promise) algorithm uses three time fences. They are PAST DUE SUPPLY,
PAST DUE DEMAND and _____.
A - Finite Supply Time
B - Infinite Supply Time
C - Planning Horizon Time
D - User Defined Lead Time
E - Accumulative Lead Time
Answer: B
Question: 74

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You want Oracle Inventory to automatically create move orders while doing min-max planning. To
enable that functionality, you would need to define the ______.
A - subinventory supply source type at the pull level
B - Move Order Timeout Action to a value greater than zero
C - Move Order Timeout Period to a value greater than zero
D - subinventory supply source type at the subinventory or item level
Answer: D
Question: 75
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 - You can compile an ABC analysis for a subinventory that is defined as a non-quantity-tracked
subinventory.
D - You can compile an ABC analysis for non-asset (expense) subinventories for which you track
quantities.
E - In ABC analysis, you must always submit for an approval on quantity variance, regardless of
the tolerance levels.
F - 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.
Answer: A, D, F
Question: 76
What is true about reorder-point planning?
A - is an optional field for all items
B - is a required field for all items
C - is used for sub-inventory items
D - is required for all forecasted items
E - is required for all non-forecasted items
Answer: A
Question: 77
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 - automatically approves and posts the cycle count adjustment
B - holds the cycle count adjustment for approval and posts it after approval
C - holds the cycle count adjustment for a recount and does not post the adjustment
D - holds the cycle count adjustment for approval and does not post the adjustment after approval
Answer: B
Question: 78
ABC Corporation, an electronic manufacturing organization, has all the functionality of a standard
business unit. They are in the implementation phase of Oracle E-Business Suite; WMS
(Warehouse Management System) functionality is enabled.
Which functionality is available for the Miscellaneous transactions in Oracle Inventory?
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1. Inventory Adjustment to General ledger account

2. User Defined Transaction type
3. Material Shortage Alert
4. Transaction for past and future period
5. Inventory Controls on the item
6. Account alias issue and receipt transaction
7. Miscellaneous issue and receipt
8. Vendor Consigned inventory receipt
9. Transaction reason at transaction header
A - All of 1 through 9
B - 1 through 8 only
C - 1 through 7 only
D - 1, 2, 5, 6 and 7 only
E - 1, 2, 3, 5, 6 and 7
F - 1, 5, 6 and 7
G - 1, 5, 6, 7 and 9
Answer: B
Question: 79
You are defining the staging subinventory for your sales order pick release rule. Which flag
should be set on the subinventory setup for pick release to work?
A - The subinventory should have the Nettable flag selected.
B - The subinventory should have the Reservable flag selected.
C - The subinventory should have the Depreciable flag selected.
D - The subinventory should have the Pre-Processing Lead Time field populated.
Answer: B
Question: 80
Which two statements are true about lot numbers? (Choose two.)
A - Lot numbers can be user defined.
B - Lot numbers have to be numeric only.
C - Lot numbers have to be of a fixed length.
D - Lot numbers can be generated only at the organization level.
E - Before turning lot control on for an item, your on-hand quantity for that item should be zero.
Answer: A, E
Question: 81
Which data is received by Oracle Order Management from Oracle Inventory?
A - shipping, reservations, and demand information
B - demand information and ATP/on-hand quantities
C - units of measure, items, reservations and ATP/on-hand quantities
D - units of measure, items, demand information, and ATP/on-hand quantities
Answer: C
Question: 82

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You just finished your first meeting with the customers Distribution Manager. She currently has
the same numbering system throughout all areas of the warehouse (Aisle, Bay, Level, Slot) and
she does not want to change the system. You have determined there will be multiple subinventories (FGI, Stores, Receiving, Inspection, Packing, MRB, and Other Damaged). How will
you compile the locator flexfield to meet these requirements?
A - Aisle-Bay-Level-Slot
B - Slot-Level-Bay-Aisle
C - Subinventory-Aisle-Bay-Slot
D - Subinventory-Aisle-Bay-Level
E - Aisle-Bay-Level-Slot-Subinventory
F - Subinventory-Slot-Level-Bay-Aisle
Answer: A
Question: 83
What is the precedence for Locator Control?
A - Organization level < subinventory level < item level
B - Organization level > subinventory level > item level
C - Organization level > subinventory level < item level
D - Organization level < subinventory level > item level
Answer: A
Question: 84
Which three values are applicable for the Transaction profile option Miscellaneous Issue and
Receipt? (Choose three.)
A - Online Processing
B - Form-Level Processing
C - Concurrent Processing
D - Background Processing
Answer: A, C, D
Question: 85
The client is running cycle counts to keep inventory accurate and eliminate the need for a
complete physical inventory. The client has encountered a problem: they are not able to count
items that are not in stock. They want the items to appear on a cycle count even if they are not in
stock. These are high-dollar items and important to the inventory and cycle count accuracy.
You approach the Materials Manager, and you ask for permission to perform which 3 steps?
1. Set up the cycle count item scope at the organization level and item valuation at the
subinventory level.
2. Ensure the Count Zero Quantities box is checked.
3. Set up the cycle count item scope item scope at the organization level and item valuation at the
organization level.
4. Set up a cycle count to count only the zero-quantity items
5. Create a subinventory where only zero-quantity parts are stored.
6. Increase the number of counts per year for all B Class Items.
7. Increase the number of counts per year for all A Class Items.
A - 2, 7, 3
B - 4, 5, 7
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C - 1, 2, 6
D - 5, 6, 7
E - 4, 3, 7
F - 1, 2, 7
G - 3, 2, 4
Answer: A
Question: 86
Select all the control options and restrictions that can be applied to an item.
1. Locator Control
2. Serial Number Control
3. Lot Control
4. Subinventory and Locator restrictions
5. Revision Quantity Control
A - 2, 4 and 5
B - 2, 3 and 4
C - 1, 2, 3 and 5
D - 2, 3, 4 and 5
E - 1, 2, 3, 4 and 5
Answer: E
Question: 87
What are the Inventory Move Order types that are supported?
A - Requisition, inventory replenishment, pick release
B - Subinventory transfer, interorganization transfer, RMA
C - Subinventory transfer, interorganization transfer, requisition
D - Subinventory transfer, interorganization transfer, pick release
E - Subinventory transfer, interorganization transfer, expected receipt
Answer: A
Question: 88
At which three functional areas can status attribute controls be controlled? (Choose three.)
A - Receiving
B - Lead Time
C - Purchasing
D - Work in Process
E - Order Management
F - MPS/MRP (Master Production Scheduling/Material Requirement Planning)
Answer: C, D, E
Question: 89
Which four statements are true regarding interorganization transfer? (Choose four.)
A - The items you transfer must not exist in both organizations.
B - You cannot set multiple intransit times for a single shipping method.
C - You can define multiple inventories, warehouses, and manufacturing facilities as distinct
organizations.
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D - You can transfer expense and asset items from one organization to another using intransit
inventory.
E - You cannot transfer partial quantities of the same item to different subinventories and locators
in a single transaction.
F - The validity of a transfer transaction depends on the controls you have defined in both the
shipping and destination organizations for the items you want to transfer.
G - The validity of a transfer transaction is governed by the controls you have defined in the
shipping organization for the items you want to transfer; these controls are then transferred to
the destination organization.
H - You can transfer one or more items in a single transaction and transfer partial quantities of the
same item to different subinventories and locators in a single transaction.
Answer: C, D, F, H
Question: 90
For performing an ABC analysis, you define these three:
1. ABC compile
2. ABC classes
3. ABC assignment group
Which statement is correct?
A - You need to assign all ABC groups to an ABC class.
B - You need to assign all the ABC classes to an ABC group.
C - You need to assign at least one ABC group to an ABC class.
D - You need to assign at least one ABC class to an ABC group.
Answer: D
Question: 91
Min-Max profile options support _____.
A - Oracle Focus Forecasting
B - Kanban Material planning
C - Dynamic Safely Stock planning
D - Static Safety Stock planning
E - Standard Reorder-Point planning
Answer: B
Question: 92
What is the prerequisite to enter unscheduled entries in your cycle count?
A - run a manual schedule request to generate counts
B - run an automatic schedule request to generate counts
C - run the count generation program for unscheduled entries
D - generate cycle count requests before you can enter counts
E - Unscheduled Entries flag set to Yes in your cycle count header
Answer: E
Question: 93
Which two statements are true about the item master? (Choose two.)

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A - It is possible to copy items across item master organizations.

B - It is possible to associate items in one item master organization with another item master
organization.
C - There is no functional or technical difference between the Item Master organization and other
organizations.
D - When an attribute control is set at the item master level, updates are not allowed at the
item/organization level.
E - When an attribute control is set at the item master level, updates can still be made at the
item/organization level but these updates will not propagate back up to the item master level.
Answer: C, D
Question: 94
ATP (Available to Promise) checking can be specified _____.
A - at the component level
B - as a function of unconsumed forecast
C - as a function of forward unconsumed forecast
D - only for finished goods at the subinventory level
E - as a function of backward unconsumed forecast
Answer: A
Question: 95
The following table shows the values for quantity variance and adjustment value tolerances for an
item in a cycle count:
Item Attributes Value
Item Standard Cost- $10.00
Positive Quantity Variance - Tolerance 5%
Negative Quantity Variance - Tolerance 10%
Positive Adjustment Value - Tolerance $200
Negative Adjustment Value - Tolerance $250
Given that the system count is 100, which value would be considered a Positive Quantity
Variance that requires approval, and also considered a Positive Adjustment Value?
A - The count quantity equals 73.
B - The count quantity equals 106.
C - The count quantity equals 88.
D - The count quantity equals 122.
Answer: D
Question: 96
You are implementing Oracle Inventory and you plan to use Focus Forecasting. Focus
Forecasting assumes that the forecasting method that worked best for the previous period _____
and _____. (Choose two.)
A - will be best for the current period
B - was based on heuristic processes
C - was based on stochastic processes
D - will result from comparing five forecast methods
E - used the method that yields the greatest APE (absolute percentage error)

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Answer: A, D
Question: 97
You are setting up a requisition move order for which approval is required. At the organization
level, you have defined the following:
1) Move Order Timeout Period
2) Move Order Timeout Action
However, the approval process is not being enabled for the organization item. What is a possible
reason?
A - The subinventory source type has not been set to pull level.
B - A planner has not been assigned to the organization item.
C - The Move Order Timeout Period has been set to a value greater than zero.
D - The Move Order Timeout Action has been set to a value greater than zero.
Answer: B
Question: 98
ABC Inc. is a medical equipment manufacturer. The company wants its finished goods item to be
restricted to a locator assigned to a subinventory for transactions. Which setup step needs to be
performed?
A - Set up item transaction default.
B - Restrict subinventories at the item-organization level.
C - Restrict locator control at the organization parameter.
D - Set up subinventories and locator restriction at the item-organization level.
E - Train the user to transact the specific item from the specific subinventory and locator.
Answer: D
Question: 99
Oracle Inventory interacts with other Oracle applications by sharing information. Choose two
pieces of information that Oracle Payables, Receivables and Assets applications receive from the
Inventory module. (Choose two.)
A - item information
B - UOM information
C - on-hand information
D - ATP supply information
E - transaction accounting detail information
Answer: A, B
Question: 100
Company XYZ has portable bar code readers that are used to scan and read data about the
amount of time charged on a resource that has been utilized on the manufacturing floor. This data
about utilization is then processed in the Oracle Work in Process module by using a _____.
A - Cost Manager
B - Concurrent Manager
C - Move Transaction Manager
D - Material Transaction Manager
E - Lot Move Transaction Manager
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Answer: E
Question: 101
You have set the SET RESTOCK min-max field to YES. What will Oracle Inventory do?
A - generate requisitions
B - recalculate EOQ (Economic Order Quantity) values
C - plan all sub-inventory items using min-max methods
D - plan all subinventory items and override safety stock values
E - plan MRP/MPS (Material Requirement Planning / Master Production Schedule) items using
statistical forecast methods
Answer: A
Question: 102
Which three ways can inventory be received into stock by using the Oracle Inventory module?
(Choose three.)
A - Receipt and Deliver
B - Receipt and then Deliver
C - Receipt and Inspect
D - Receipt, Inspect and Deliver
Answer: A, B, D
Question: 103
Which is a typical hierarchy in a multiorganization model (top down)?
A - business group, set of books, operating unit, legal entity, inventory organization
B - business group, set of books, legal entity, operating unit, inventory organization
C - business group, legal entity, set of books, operating unit, inventory organization
D - business group, legal entity, operating unit, set of books, inventory organization
E - business group, operating unit, set of books, legal entity, inventory organization
F - business group, operating unit, legal entity, set of books, inventory organization
Answer: B
Question: 104
Inventory organizations B1 and M1 each have five unique physical separations of material
inventory area, which are under locator control. Customer shippable goods are stored in the FGI
(Finished Goods Inventory) storage area. The raw material storage area is called Stores.
Organization B1 wants to transfer customer goods from one locator to another. What is the
applicable transaction to accomplish the transfer?
A - subinventory transfer
B - direct interorganization transfer
C - Account Alias Issue and Receipt
D - Miscellaneous Issue and Receipt
E - interorganization transfer by way of intransit
Answer: A
Question: 105
Which types of move orders are supported by Oracle Inventory?
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1. Move Order Requisitions

2. Replenishment Move Orders
3. Pick Wave Move Orders
4. Anonymous Move Orders
A - 1 and 2 only
B - 2 and 3 only
C - 2, 3 and 4 only
D - 1, 2 and 3 only
E - 1, 2, 3 and 4
Answer: D
Question: 106
How many distinct ABC compile names can exist at a given time in an inventory organization?
A - only one for each subinventory
B - only one per inventory organization
C - an unlimited number of names
D - one for each subinventory and one for each inventory organization
Answer: C
Question: 107
Which statement is true about an inventory organization that is set up under a multiorganization
structure in Oracle Inventory?
A - All inventory organizations should be under the same set of books.
B - All inventory organizations should be under the same operating unit.
C - An inventory organization exists under a distinct set of books, operating unit and legal entity.
D - The same inventory organization can be under different sets of books, operating units and
legal entities.
E - Each inventory organization under different business units or sets of books should be under a
different installation of Oracle Applications.
Answer: C
Question: 108
You have specified both quantity variance and adjustment value approval tolerances at the cycle
count header level only. You have also set the Approval Required option in your cycle count to If
out of tolerance. Oracle Inventory would automatically approve your actual count entered if ____.
A - the cycle count quantity entered for your item falls within the quantity variance tolerance
B - the cycle count quantity entered for your item falls within the adjustment value approval
tolerance
C - the cycle count quantity entered for your item falls within both the quantity variance tolerance
and the adjustment value approval tolerance
D - the cycle count quantity entered for your item falls within either the quantity variance tolerance
or the adjustment value approval tolerance
Answer: C
Question: 109
Which three are Oracle Inventory replenishment methods? (Choose three.)
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A - Kanban
B - Safety Stock
C - Min-max Planning
D - Replenishment Counting
E - MRP (Materials Requirement Planning)
Answer: A, C, D
Question: 110
ABC Inc. is a semiconductor manufacturing organization. They have all possible inventory
controls on items.
Which controls are validated on subinventory transfer transactions?
1. Lot Control
2. Locator Control
3. Serial Number control
4. Revision quantity control
5. Subinventory and locator restrictions for specific items
A - 1 only
B - 1, 2 and 3
C - 1, 3 and 5
D - 1 and 3 only
E - 1, 2, 3 and 4
F - 1, 2, 3 and 5
G - all of 1 through 5
Answer: G
Question: 111
ABC Inc. does not have Oracle Engineering implemented to transfer the engineering item to
Oracle Inventory.
All their engineering items are defined in Oracle Inventory with a item status ENG, which has
these attributes disabled:
Customer Order Enabled
Internal Order Enabled
Invoice Enabled
Purchasable
All the other status control attributes are enabled.
The Planning and Engineering departments had a meeting and concluded that the engineering
items will be released to Oracle Manufacturing with Internal Order Enabled attribute enabled
first on an agreed date for their business center to order and stock the items for selling. Then the
status attribute Customer Order Enabled and Invoice Enabled will be enabled on a different
agreed date.
These status attributes need to be changed automatically on the agreed date, and not require a
manual intervention.
What is the correct functionality?
A - Two different statuses, with the appropriate status attribute flag enabled. Assign the status
attribute to the item manually on the date that it needs to be implemented.
B - Three different statuses, with the appropriate status attribute flag enabled. Assign the status
attribute to the item manually on the date that it needs to be implemented.
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C - Two different status attributes, with the appropriate status attribute flag enabled. Write a
custom program to assign the status attribute to the item on the date that it needs to be
implemented.
D - Two different statuses, with the appropriate status attribute flag enabled. Assign the status to
the item by using Pending Status on the date when it needs to be implemented.
E - To do this, Oracle Engineering needs to assign the status attribute to the item with the date
when it needs to be implemented.
Answer: D
Question: 112
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 Prespecified.
B - Set up the subinventory with Locator control set to Dynamic Entry.
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 Item Level control; for items that should be
tracked by bin, set Locator control to Dynamic Entry.
Answer: D
Question: 113
ABC Inc. has four operating units. Each operating unit has its own master organization.
Operating unit 1 has twenty-two inventory organizations.
Operating unit 2 has four inventory organizations.
Operating unit 3 has thirteen inventory organizations.
Operating unit 4 has eight inventory organizations.
All four operating units are assigned to one legal entity.
Which statements are true? (Choose all that apply.)
A - Two item masters cannot exist in one legal entity.
B - Interorganization transfers between operating unit 2 and operating unit 3 cannot be
performed.
C - An item in the master organization of operating unit 3 can be assigned to one of the child
organizations in operating unit 1.
D - The same item name can be defined in the master organization in operating unit 1 and the
master organization in operating unit 2.
E - Inventory items in operating unit 1 cannot be assigned to all 22 child inventory organizations,
because items cannot be assigned to more then 15 child organizations at one time.
Answer: B, D
Question: 114
Which three statements regarding Oracle Inventory forecasting are true? (Choose three.)
A - Forecasts generated by Inventory are based on historical transaction activity only.
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B - Master schedule entries can be used as transaction activity to generate Inventory forecasts.
C - Manually created forecasts can be based on transaction activity other than historical data.
D - After you complete an Inventory forecast, you can use it to drive Min-Max planning.
E - When creating a forecast, you can select the type of transactions you want to use.
Answer: A, C, E
Question: 115
Which two statements about the Stock Locator flexfield are true? (Choose two.)
A - Stock Locator is set up as a key flexfield.
B - Stock Locator is set up as a descriptive flexfield.
C - You cannot have a . character in your locator name.
D - You have to use the same value set for all the segments of the Stock Locator flexfield.
E - You have the flexibility to set up segments of the stock locator as mandatory or not
mandatory.
Answer: A, E
Question: 116
Select one accurate and comprehensive description of the content scope of an ABC compile?
A - performed at the inventory organization level only
B - performed at the individual subinventory level only
C - performed at the inventory organization or individual subinventory level
D - performed at the individual subinventory level with a choice to include the same items from all
subinventories in the organization
Answer: C
Question: 117
Which two statements are true regarding item standard costs, if the inventory organizations are
setup to use their own organization as the costing organization? (Choose two.)
A - An item cannot have different standard costs across different inventory organizations of a
single operating unit.
B - An item can have different standard costs across different inventory organizations of a single
operating unit.
C - An item can have different standard costs across different inventory organizations regardless
of the operating unit.
D - An item can have different standard costs in different inventory organizations only if the
organizations are under different operating units.
Answer: B, C
Question: 118
Which four statements are true about generating a cycle count? (Choose four.)
A - You can schedule cycle counts either automatically or manually.
B - You can manually schedule count using the Manual Schedule Request window. You can
request counts for specific subinventories, locators and items.
C - The Cycle Count Enabled item attribute must be set to Yes for the items you want to include
in your cycle count (assume autogenerated requests).
D - If you turn automatic scheduling on, you should specify the frequency of scheduling: daily,
weekly, or by period.
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E - If an item is under serial control the cycle count will always create one count request for each
serial number.
Answer: A, B, C, D
Question: 119
Identify four steps or best practices that take place related to a physical inventory. (Choose four.)
A - Do not ship or receive items during the physical inventory.
B - Discard unused or blank tags at the end of your inventory.
C - Clear the Pending Transactions and the transactions in the Transactions Open Interface,
before taking a snapshot of inventory quantity.
D - If you enable dynamic tag entry for your physical inventory, enter counts for any item and
stock-keeping unit combination without a pre-generated tag number.
E - Ensure that normal transaction activity can occur in each location during the physical
inventory.
F - Ensure that no transaction activity occurs in a particular location until after you have entered
your accounts, or better still, until after you have performed your adjustments.
G - Ensure that no transaction activity occurs in a particular location until after you have taken
your snapshot.
Answer: A, B, C, F
Question: 120
Which three statements are true regarding inventory transactions? (Choose three.)
A - The user can define new source types.
B - The user can define new transaction actions.
C - Transaction types are used to classify a transaction for reporting and querying purposes.
D - A transaction source type is the combination of a transaction type and a transaction action.
E - Transaction types identify certain transactions to be included in historical usage calculations
for ABC analysis or forecasting.
Answer: A, C, E
Question: 121
You are reviewing an existing implementation. Some of the items have no planning method
selected. Before you select a replenishment method, it is important to know the items _____.
A - lead time
B - Mean-Absolute-Deviation
C - EOQ (Economic Order Quantity)
D - Exponentially Smoothed Forecast
E - current ATP (Available to Promise)
Answer: A
Question: 122
When you set up a subinventory, you have to set up accounts for the subinventory. From which
account does the Expense Account default?
A - Expense Accrual Account from the Intercompany Relations setup form
B - Default Cost Group that the system assigns when setting up the organization
C - The Expense Account setup on the Purchasing page of the Item Master Record
D - Expense Account from the Valuation Accounts region of the Organization parameters form
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E - Expense Accounts Payable Accrual account on the Receipt Accounting page of the
Purchasing Options form
Answer: D
Question: 123
For which type of Move order is approval required?
A - Shipping Move Order
B - Requisition Move Order
C - Replenishment Move Order
Answer: B
Question: 124
Which three statements are true regarding Inventory replenishment methods? (Choose three.)
A - Min-max planning considers carrying cost.
B - Reorder point planning considers order cost.
C - Reorder point planning considers replenishment lead time.
D - Min-max planning can be performed at the subinventory level.
E - When you define an item, you can specify both reorder point planning and min-max planning
to place limits on the calculated reorder point.
Answer: B, C, D
Question: 125
View the Exhibit.

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You are setting up Oracle Inventory for a new client.

The organizational structure consists of one set of books, two legal entities, and three operating
units.
The three operating units have three, one and two inventory organizations respectively. All the
operating units will use the same item numbers.
You should setup all costing attributes at the _____ level.
A - legal entity
B - operating unit
C - inventory organization
D - subinventory organization
E - set of books (business group)
Answer: C
Question: 126
During the setup of inventory organizations, you define physical locations (with address/ shipping
details) and inventory organizations separately, and then associate them with each other. Which
two statements are true regarding these associations? (Choose two)
A - A physical location can be associated with only one inventory organization.
B - An inventory organization can be associated with only one physical location.
C - A physical location can be associated with more than one inventory organization.
D - An inventory organization can be associated with more than one physical location.
Answer: B, C
Question: 127
Which three statements are true about ABC analysis? (Choose three.)
A - The ABC class is an item attribute.
B - You can only have three classes: A, B and C.
C - You must assign an ABC class to at least one ABC group.
D - You may use ABC classes to group items for planning purposes.
E - You use ABC classes to identify the value groupings to which your items belong.
Answer: C, D, E
Question: 128
ABC Organization is part of a Business Group with a dozen inventory organizations. It uses Item
Status to control the life cycle of a product. It is facing problems when updating attributes for an
item, such as Build in WIP. They have tried applying a newly created template, as well as
Updating the Attribute in the Master Item level. Which three options do they need to verify to
troubleshoot this issue? (Choose three.)
A - Check the Item Attribute control settings.
B - Check the Inventory Profile: Default Status.
C - Check the organizations inventory balance for the items.
D - Check that item attributes are enabled on the item template.
E - Check that the Inventory Transactable attribute is set to YES.
F - Check for errant miscellaneous receipts and issues that distort the items correct inventory
position.
Answer: A, C, D

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Question: 129
Min-max planning can be used _____.
A - only at the sub-inventory level
B - in place of MRP/MPS planning
C - in Exponential Smoothing Forecast calculations
D - in EOQ (Economic Order Quantity) calculations
E - in MRP/MPS (Material Requirement Planning / Master Production Schedule) calculations
Answer: B
Question: 130
You are creating an interorganization transfer. The standard shipping lead time defined for the
transfer is 14 days. You want to move the inventory from the source and put it in Intransit. You
made a mistake and did not choose the option to have Intransit Inventory. When you initiate the
process for interorganization transfer, what is the most likely result of the transaction?
A - You will get an error for the transaction, because it violates referential integrity.
B - The inventory will be moved from the source organization, but it will be moved directly to the
destination organization.
C - The inventory will not be moved from the source organization, because there is a lead time of
14 days defined.
D - The inventory will be moved from the source organization, but it will be moved to intransit
inventory, because there is a lead time of 14 days defined.
Answer: B
Question: 131
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 Roll
B - standard conversion between Box to Each and Roll to Each
C - intraclass conversion between Box to Roll for the items in Length category
D - interclass conversion between Box to Each and Roll to Each for every item in Length category
E - intraclass conversion between Box to Each and Roll to Each for every item in Length category
F - 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
G - 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
Answer: E

End of Document

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