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Oracle Fusion Cloud Applications SCM Foundations Associate - Rel 1 Sample Questions (Q13-Q18):

NEW QUESTION # 13
Which metric is used to measure the effectiveness of the Demand to Management OMBP?

A. Forecast Accuracy.
B. Inventory Turnover.
C. Customer Acquisition Cost.
D. Supplier Lead Time.

Answer: A

Explanation:
Forecast Accuracy (C) measures the effectiveness of the Demand to Management OMBP by comparing predicted demand to actual demand, reflecting how well the process anticipates market needs. For example, if a forecast predicts 1,000 units and actual sales are 950, accuracy is 95%, indicating strong performance. Option A (Customer Acquisition Cost) is a marketing metric, unrelated to demand planning. Option B (Supplier Lead Time) assesses supplier performance, not forecasting. Option D (Inventory Turnover) measures stock movement, an outcome influenced by forecasting, not a direct metric. Accurate forecasts drive efficient inventory and production planning, reducing costs (e.g., avoiding $10,000 in overstock) and ensuring customer satisfaction.

NEW QUESTION # 14
What is the primary function of the Available to Promise (ATP) process in Oracle Fusion Cloud SCM?

A. It manages only supplier payments without impacting inventory levels.
B. It eliminates the need for demand forecasting.
C. It guarantees immediate shipment for all orders.
D. It ensures product availability commitments based on inventory and supply constraints.

Answer: D

Explanation:
The Available to Promise (ATP) process (A) in Oracle Fusion Cloud SCM calculates the quantity of products available to commit to new customer orders by analyzing current inventory levels and supply constraints, such as production capacity, supplier lead times, and existing order commitments. For example, if a warehouse has 200 units of a product with 50 already promised, ATP indicates 150 units are available, ensuring accurate delivery promises. This real-time calculation prevents overpromising and aligns customer expectations with operational reality. Option B is incorrect-ATP does not guarantee immediate shipment but provides feasible timelines based on availability, not an unrealistic universal promise. Option C is false-demand forecasting complements ATP by informing supply planning; it doesn't eliminate it. Option D is irrelevant-supplier payments are managed by financial modules, not ATP, which focuses on inventory and supply. By ensuring reliable commitments, ATP enhances customer satisfaction, reduces order cancellations, and optimizes resource use across the supply chain.

NEW QUESTION # 15
Which feature in Oracle Fusion Cloud SCM ensures optimal inventory levels by tracking stock movement?

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

Answer: C

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

NEW QUESTION # 16
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 # 17
Which process in Oracle Fusion Cloud SCM ensures real-time communication between suppliers and buyers?

A. Supply Chain Collaboration.
B. Manufacturing Execution.
C. Supplier Qualification.
D. Cost Accounting.

Answer: A

Explanation:
Supply Chain Collaboration (B) in Oracle Fusion Cloud SCM is designed to facilitate real-time communication between suppliers and buyers through tools like the Supplier Portal and collaboration workspaces. This process enables sharing of critical information-such as order statuses, inventory levels, and delivery schedules-instantly, fostering transparency and responsiveness. For example, a buyer can notify a supplier of an urgent order change, and the supplier can confirm availability within minutes, reducing delays. Option A (Supplier Qualification) focuses on evaluating supplier eligibility, not ongoing communication. Option C (Cost Accounting) tracks financial data, unrelated to supplier-buyer interaction. Option D (Manufacturing Execution) manages shop floor activities, not external collaboration. Supply Chain Collaboration ensures a synchronized supply chain, mitigating risks like stockouts or misaligned expectations by keeping all parties informed in real time.

NEW QUESTION # 18
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