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Oracle Fusion Cloud Applications SCM Foundations Associate - Rel 1 Sample Questions (Q37-Q42):
NEW QUESTION # 37
Which key metric measures the effectiveness of the Demand to Management OMBP in Oracle Fusion Cloud SCM?
- A. Inventory Turnover, which tracks the speed of inventory movement.
- B. Forecast Accuracy, evaluates the precision of demand predictions against actual market demand.
- C. Supplier Lead Time, which measures supplier response efficiency.
Answer: B
Explanation:
For the Demand to Management OMBP, Forecast Accuracy is the primary metric, as it evaluates how precisely demand predictions match actual market demand, a foundational step in effective supply chain planning. Calculated as a percentage (e.g., actual demand of 800 units versus a forecast of 850 yields 94% accuracy), it directly reflects the OMBP's ability to drive downstream processes like procurement and production. Option B (Supplier Lead Time) measures supplier performance, which affects supply execution but not demand forecasting accuracy. Option C (Inventory Turnover) tracks inventory movement efficiency, an outcome influenced by forecast accuracy, not a direct measure of the OMBP itself. Accurate forecasts prevent overproduction or shortages-for example, overestimating demand by 20% could lead to $50,000 in excess inventory costs, underscoring the metric's importance.
NEW QUESTION # 38
What is the primary purpose of the Demand to Management OMBP in Oracle Fusion Cloud SCM?
- A. It guarantees same-day delivery for all orders.
- B. It ensures accurate demand forecasting and planning.
- C. It focuses only on local inventory availability.
- D. It eliminates the need for supplier collaboration.
Answer: B
Explanation:
The Demand to Management OMBP (C) in Oracle Fusion Cloud SCM ensures accurate demand forecasting and planning, translating market signals into actionable supply strategies. It uses tools like machine learning and collaborative forecasting to predict demand-e.g., forecasting 1,000 units for a holiday season-and aligns inventory and production accordingly. Option A is incorrect-it addresses enterprise-wide demand, not just local stock. Option B is false-no process guarantees same-day delivery; it focuses on planning. Option D is wrong-supplier collaboration is integral to fulfilling demand. This OMBP minimizes overstocking or shortages, optimizing resources and enhancing customer service through precise planning.
NEW QUESTION # 39
What is a key feature of the Supplier Portal in Oracle Fusion Cloud Procurement?
- A. It allows suppliers to manage purchase orders, invoices, and collaboration in real time.
- B. It restricts suppliers from modifying their account details.
- C. It only provides access to purchase orders but not invoices.
Answer: A
Explanation:
The Supplier Portal in Oracle Fusion Cloud Procurement is a collaborative platform that allows suppliers to manage purchase orders (POs), invoices, and real-time interactions with buyers. Suppliers can view POs, submit invoices, update shipment details, and respond to queries, enhancing transparency and efficiency. Option A is incorrect because the portal includes both POs and invoices, not just one. Option C is false-suppliers can update account details like contact or banking information, subject to approval workflows. For example, a supplier receiving a PO for 200 units can confirm delivery dates and submit an invoice directly through the portal, reducing email exchanges and delays. This feature streamlines procurement, improves supplier relationships, and ensures data accuracy across the supply chain.
NEW QUESTION # 40
What is a key feature of the Back-to-Back Order Fulfillment process in Oracle Fusion Cloud SCM?
- A. It delays order fulfillment until inventory is replenished.
- B. It prioritizes warehouse stock over supplier sourcing.
- C. It links customer orders to supplier purchase orders, ensuring direct fulfillment.
Answer: C
Explanation:
The Back-to-Back Order Fulfillment process (A) in Oracle Fusion Cloud SCM links customer orders directly to supplier purchase orders, ensuring seamless fulfillment without relying solely on existing inventory. When a customer order is placed, the system automatically generates a corresponding PO to the supplier, who ships the goods directly or via the warehouse to the customer. For example, if a retailer orders a custom machine not in stock, Back-to-Back triggers a PO to the manufacturer, streamlining delivery. Option B is incorrect-it aims for efficiency, not delays. Option C is wrong-it prioritizes supplier sourcing over warehouse stock when needed. This feature reduces inventory holding costs, improves cash flow, and ensures timely delivery, making it ideal for make-to-order scenarios.
NEW QUESTION # 41
What is the role of automation in creating POs from contract fulfillment in Oracle Fusion Cloud Procurement?
- A. It enhances supplier qualification by providing visibility into supplier responses.
- B. It ensures that POs are created accurately based on contract terms, reducing manual errors, and improving efficiency.
- C. It facilitates the approval process by routing POs to the appropriate approvers, based on invoice rules and limits.
Answer: B
Explanation:
In Oracle Fusion Cloud Procurement, automation plays a critical role in creating purchase orders (POs) from contract fulfillment by ensuring that POs are generated directly from agreed contract terms with high accuracy and minimal manual intervention. This process leverages predefined contract data-such as item details, pricing, quantities, and delivery schedules-to populate POs automatically, reducing errors like incorrect pricing or quantities that often occur in manual entry. For instance, if a contract specifies 100 units of a product at $10 each, automation ensures the PO reflects this exactly, bypassing the need for manual rekeying. Option A is incorrect because routing POs for approval is a subsequent step, not the primary role of automation in PO creation. Option C is unrelated, as supplier qualification pertains to evaluating suppliers, not PO generation. This automation improves efficiency by speeding up the procurement cycle, ensures compliance with contract terms, and frees procurement staff to focus on strategic tasks rather than clerical work. It also integrates with supplier collaboration tools to confirm details, further enhancing accuracy.
NEW QUESTION # 42
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