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Oracle Fusion Cloud Applications SCM Foundations Associate - Rel 1 Sample Questions (Q20-Q25):

NEW QUESTION # 20
What is a primary advantage of the Replenishment Planning process in Oracle Fusion Cloud SCM?

A. It ensures optimal inventory levels by predicting demand and adjusting supply plans accordingly.
B. It guarantees inventory levels remain static regardless of demand fluctuations.
C. It reduces supplier payment cycles.

Answer: A

Explanation:
Replenishment Planning in Oracle Fusion Cloud SCM optimizes inventory levels by predicting demand and adjusting supply plans to prevent overstocking or stockouts. It uses demand forecasting and supply data to ensure inventory aligns with business needs. Option A (reducing payment cycles) is unrelated to replenishment planning. Option B (static inventory) is incorrect as the process dynamically adjusts to demand fluctuations, not maintains static levels. This advantage enhances operational efficiency and cost savings.

NEW QUESTION # 21
What is the role of the Global Order Promising feature in Oracle Fusion Cloud SCM?

A. It provides real-time order commitment dates based on supply and demand constraints.
B. It guarantees same-day delivery for all orders.
C. It focuses only on local inventory availability.
D. It eliminates the need for supplier collaboration.

Answer: A

Explanation:
Global Order Promising (C) provides real-time order commitment dates by analyzing supply (e.g., inventory, production) and demand (e.g., orders, forecasts) constraints enterprise-wide. For instance, if 100 units are requested and 70 are available with a 3-day lead time, it commits to 3 days. Option A is false-no universal same-day guarantee exists. Option B is incorrect-supplier data often informs promises. Option D is wrong-it considers global, not just local, availability. This feature ensures reliable promises, reduces cancellations, and aligns customer expectations with operational capacity.

NEW QUESTION # 22
What is the primary purpose of the Supplier Collaboration feature in Oracle Fusion Cloud Procurement?

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

Answer: D

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

NEW QUESTION # 23
What is the purpose of the Available to Promise (ATP) process in Oracle Fusion Cloud SCM?

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

Answer: B

Explanation:
The Available to Promise (ATP) process in Oracle Fusion Cloud SCM is designed to determine product availability and provide realistic commitments to customers based on current inventory levels and supply constraints, such as production capacity and supplier lead times. ATP calculates how much stock is "available to promise" for new orders by subtracting existing commitments from on-hand inventory and factoring in planned supply. For example, if a warehouse has 50 units of a product, with 20 already allocated to prior orders, ATP shows 30 units available for new promises. Option B is incorrect because ATP has no direct role in managing supplier payments-it focuses on inventory and supply planning. Option C is false as ATP does not guarantee immediate shipment; it provides feasible dates based on availability, not an unrealistic promise of instant delivery. This process supports accurate order promising, prevents stockouts, and aligns customer expectations with operational reality, making it a cornerstone of effective supply chain management.

NEW QUESTION # 24
Which key metric measures the effectiveness of the Demand Forecast to Supply Plan OMBP?

A. Supplier Service Quality.
B. Demand Fulfillment.
C. Lead Time Variability.
D. Supply Chain Flexibility.

Answer: B

Explanation:
The Demand Forecast to Supply Plan OMBP in Oracle Fusion Cloud SCM bridges demand forecasting with supply planning, and its effectiveness is best measured by Demand Fulfillment-the percentage of demand met on time and in full. This metric evaluates how well the supply plan, derived from forecasts, satisfies actual customer orders. For example, if a forecast predicts 500 units and the supply plan delivers 480 units on time, the fulfillment rate is 96%. Option A (Lead Time Variability) assesses supplier performance, not the forecast-to-plan process. Option B (Supplier Service Quality) focuses on supplier reliability, a separate concern. Option C (Supply Chain Flexibility) measures adaptability, not direct fulfillment success. Demand Fulfillment ties directly to the OMBP's goal of aligning supply with demand, ensuring customer satisfaction and operational efficiency while minimizing excess inventory or stockouts.

NEW QUESTION # 25
......

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