1Z0-226try1. Number: Passing Score: 800 Time Limit: 120 min File Version:

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1 1Z0-226try1 Number: Passing Score: 800 Time Limit: 120 min File Version: 1.0

2 Exam A QUESTION 1 The Check ATP option is enabled for an item in the Finished Goods sub inventory. Which action will occur? 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 Economic Order Quantity (EOQ). Correct Answer: C /Reference: QUESTION 2 The client requires that cycle counts are entered by the warehouse staff. However, only the warehouse manager can schedule counts, generate count requests, and approve the counts that are out of tolerance. What should you consider when setting up the cycle counting process? (Choose three.) A. the frequency of the recounts required B. the number of automatic recounts required C. the tolerance level for automatic adjustment D. Modify the workday calendar used by the warehouse. E. the responsibility that has access to the Approve Counts function F. the number of serial and/or lot controlled items included in the count Correct Answer: BCE /Reference: QUESTION 3 Company Z has two sites. Both sites are inventory organizations. One is in Colorado, the other is in New Jersey. Inventory is expected to travel between the two, in both directions. The following requirements are identical for the two organizations: A. Ownership transfer occurs upon ship confirms. B. There is a two-step receiving process. C. Only approved orders would be performed. Which setups in Shipping Networks meet these criteria? D. Transit Type = Direct, FOB = Receipt, Receipt Routing = Direct, Internal Order Required = checked E. Transit Type = Intransit, FOB = Receipt, Receipt Routing = Direct, Internal Order Required = unchecked F. Transit Type = Intransit, FOB = Receipt, Receipt Routing = Standard, Internal Order Required = checked G. Transit Type = Direct, FOB = Shipment, Receipt Routing = Standard, Internal Order Required = checked H. Transit Type = Intransit, FOB = Shipment, Receipt Routing = Inspection, Internal Order Required = checked Correct Answer: C

3 /Reference: QUESTION 4 Each UOM class must have a base unit specified. Which represents a base unit for the UOM Class Quantity? A. One B. Each C. Case D. Gross E. Dozen Correct Answer: B /Reference: QUESTION 5 A user informs you about the inability to create a requisition using category The Purchasing category structure is set up as Item Category. Commodity. The user has described the problem as follows: "I am able to select 110 for the item category and 33 for the commodity, but when I click OK I receive an error." Identify two reasons for the error. (Choose two.) A. The commodity 33 has been deactivated. B. The item category 110 has been deactivated. C. The category is not assigned to a buyer. D. Category is not set up in the categories form. E is not assigned to the Purchasing category set. F has not been added to the appropriate value set. G. Allow Dynamic Inserts is not checked for the Purchasing category flexfield. Correct Answer: DE /Reference: QUESTION 6 XYZ is a chemical manufacturing company. On a daily basis, it produces 100 kilos of Item A from a single production batch. 100 kilos of item A manufactured from a single batch has a single expiration date. However, the purity of item A varies as follows: Category 1: 95% Category 2: 85% Category 3: 50% From an implementation perspective, which setup or process would meet this requirement? A. Enable lot control. Map three categories as coproducts. B. Enable lot control for item A. Create three lots to represent the categories. C. Enable lot control for item A. Create three child lots and link them with the parent lot. D. Enable lot and grade control for item A. Have three categories mapped with grades. E. Enable lot and serial control for item A. Create one lot and three categories that are mapped with serial

4 numbers. Correct Answer: D /Reference: QUESTION 7 For which type of move order is approval required? A. Planning Move Order B. Shipping Move Order C. Production Move Order D. Requisition Move Order E. Replenishment Move Order Correct Answer: D /Reference: QUESTION 8 Identify four functions that a user can perform using the Material Workbench. (Choose four) A. Create move orders. B. Create and save queries. C. Change material statuses. D. Perform miscellaneous issues. E. Perform miscellaneous receipts. F. Perform pick confirm transactions. G. Perform ship confirm transactions. H. View material in receiving, on-hand quantities, and in transit material. Correct Answer: ABCH /Reference: QUESTION 9 The client has decided that Quality and Discrete Manufacturing will be implemented at a future stage, so new supply from current manufacturing will be added to current inventory on hand by the Open Transactions

5 Interface. The immediate requirement is to go-live with Inventory and Order Management. Which three seeded transaction types can be omitted for material status control? (Choose three.) A. average cost update B. all internal transactions C. back flush sub inventory transfer D. miscellaneous issues and receipts E. all transaction types related to Work in Process F. all transaction types related to Project Manufacturing Correct Answer: CEF /Reference: QUESTION 10 ACME attempts the Pick Release process for delivery lines that have been booked. Which three options are valid? (Choose three.) A. Run the Auto Allocate process. B. Run the Pick Slip Grouping process. C. Run the Interface Trip Stop process. D. Use the Standard Report Submission process (SRS). E. Execute Online from the Release Sales Order window. F. Run a concurrent program from the Release Sales Order window. Correct Answer: DEF /Reference: QUESTION 11 PTO Kits consist of. A. a standard BOM B. a configurable BOM C. a standard BOM with mandatory included options D. a configurable BOM with mandatory included options E. an engineering BOM with mandatory included options Correct Answer: C /Reference: QUESTION 12 Identify the four statements related to the MOAC functionality. (Choose four.) A. When querying any transaction, one must specify the operating unit.

6 B. The Operating Unit field is a display-only field for all the transaction forms. C. While entering a transaction, the Operating Unit needs to be selected in case the user wants an Operating Unit other than the default. D. While querying for a transaction, entering the Operating Unit helps the application to query lesser number of transactions and results in better performance. E. A new Operating Unit field has been added to all the forms that allow the user to view and manage. Sales Orders and Returns across multiple operating units. F. A new Operating Unit field has been added to all the forms that allow the user to view and manage Sales Agreements and Quotes across multiple operating units. Correct Answer: CDEF /Reference: QUESTION 13 Weight and physical dimensions are examples of. A. an item attribute B. an item parameter C. an item profile option D. an item master characteristic Correct Answer: A /Reference: QUESTION 14 Identify three correct statements regarding customer acceptance setups. (Choose three.) A. Customer acceptance can be enabled at the inventory organization level. B. For enabling customer acceptance, no setup is required in OM. C. Customer acceptance can be enabled at the OM operating-unit level. D. Define assignment rules for deferral reasons at the customer, site, or item level. E. The first step to enable customer acceptance is to set the OM system parameter: Enable Fulfillment Acceptance. F. The second step of the customer acceptance setup is to define customer acceptance deferral reasons in the AR revenue management setup. Correct Answer: CEF /Reference: QUESTION 15 What are the three necessary setup steps to enable system credit checking on an order? (Choose Three.) A. Assign a credit rule to the order type being used.

7 B. Select a warehouse that has credit checking enabled. C. Enable the Credit Card Security Code system parameter. D. Use a payment term for which the Credit check box is enabled. E. Define the customer profile so that the Credit check box is selected. F. Make sure that there is at least one defaulting rule enabled for credit checking. Correct Answer: ADE /Reference: QUESTION 16 Select two correct statements regarding the workflow holds/activities/exception Management. (Choose two.) A. The Retry concurrent program can be run only at Execution mode. B. Retry workflow activities are possible only at individual error levels. C. Retry workflow activities are possible in batch mode via concurrent program. D. Retry workflow activities cannot be launched from the Process Messages window. E. When a ship line activity errors out after the line has progressed and the delivery detail is closed, the line status displays as Notify instead of Retry. Correct Answer: CE /Reference: QUESTION 17 During the requirements-gathering stage, your client states that it wants items purchased from a supplier to be inspected. The client wants to know at what point the inventory is available to reserve. When can reservations occur? A. upon PO Line receipt B. when the PO is approved C. after the Inspection step is performed D. after the Receipt Line Deliver transaction E. reservations are not possible on inspection items Correct Answer: D /Reference: QUESTION 18 Your client requires Org A to supply Org B with inventory on a need basis. The Internal Order flag is checked. An internal requisition has been created and approved. What type of receipt would Org B have to perform to receive the goods? A. RMA receipt B. Inter-Org Transfer

8 C. Account Alias receipt D. Purchase Order receipt E. Receipt by Shipment Number Correct Answer: E /Reference: QUESTION 19 Your client has an item that is used globally. The site in Colorado is evaluating a local source for the item. The buyer requires the incoming goods from the local source to be separated from the goods received from nonlocal sources. Which three actions should be performed to meet this requirement? (Choose three.) A. Enter the item in the sub inventory form. B. Modify master item attributes to default a sub inventory. C. Change the PO Line receipt routing to Inspection Required. D. Modify organization item attributes to default a sub inventory. E. Create a separate sub inventory to stock goods from the local source. F. Create item transaction default for the item in the Item Master Organization. G. Insert a separate sub inventory on the purchase order and attach Receiver Notes. H. Ensure that you do not create an item transaction default for the item in the Inventory Organization. Correct Answer: EGH /Reference: QUESTION 20 Which data is provided by Oracle Purchasing to Oracle Inventory? A. ATP supply, planning supply, and requisition information B. items, requisition, and interorganization shipment information C. receipts/deliveries and interorganization shipment information D. receipts/deliveries, ATP supply, and planning supply information E. receipts/deliveries, units of measure, ATP supply, and planning supply information Correct Answer: D /Reference: QUESTION 21 Oracle Inventory interacts with other Oracle applications by sharing information. Choose two pieces of information that Oracle Payables, Receivables, and Costing applications receive from the Inventory module. (Choose two.) A. Item information B. UOM information

9 C. On-hand information D. ATP supply information E. Transaction accounting detail information Correct Answer: AB /Reference: QUESTION 22 What is true about (alpha) in the Exponential Smoothing Forecast (ESF) method? A. (alpha) equals the old forecast. B. (alpha) is always greater than one. C. (alpha) is calculated by Oracle Inventory. D. (alpha) is multiplied by the forecast error to determine the adjustment. E. (alpha) equals the old forecast plus a portion of the forecast error from the previous period. Correct Answer: D /Reference: QUESTION 23 You and your client determined that forecasting methods included with inventory will be sufficient to meet the client's needs. You and the customer have decided to use Focus Forecasting to begin with and move to Exponential Smoothing after one year. Along the way, your customer noticed some definite trends in demand and has requested your help to re-evaluate the forecasting method. What do you recommend as a forecasting method? What additional information is needed, if any? A. Focus Forecasting B. Exponential Smoothing C. Exponential Smoothing with Trend Enhanced Forecasting, Alpha and Beta Coefficients D. Exponential Smoothing with Season Enhanced Forecasting, Alpha and Beta Coefficients E. Exponential Smoothing with Season Enhanced Forecasting, Alpha and Gamma Coefficients Correct Answer: C /Reference: QUESTION 24 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 C. both trend and seasonal demand patterns are equal to zero D. both trend and seasonal demand patterns are less than E. both trend and seasonal demand patterns are greater than

10 Correct Answer: C /Reference: QUESTION 25 You are implementing inventory and 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. will use the method that yields the greatest absolute percentage error (APE) Correct Answer: AD /Reference: QUESTION 26 ACME is implementing 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. an inventory Accounts Payable accrual account E. records in the Purchase Order Requisition interface table Correct Answer: E /Reference: QUESTION 27 The client wants to implement reorder point planning for some 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 client wants 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,

11 Order Cost, and Minimum Order Quantity Correct Answer: C /Reference: QUESTION 28 Your customer decided to use min-max planning for some items in specific sub inventories. You caution him not to include too many customer orders when he runs the report. What option do you suggest that he include? A. Supply Cutoff Date B. Demand Cutoff Date C. Supply and Demand Cutoff Dates D. Material Requirement Planning (MRP) E. Advanced Supply Chain Planning (ASCP) Correct Answer: B /Reference: QUESTION 29 ACME is implementing 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 pre-approved. B. Users must approve requisitions for items that have a limited shelf life. C. Users must approve requisitions for items with a Material Safety Data Sheet (MSDS). 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's Economic Order Quantity (EOQ). Correct Answer: A /Reference: QUESTION 30 What is the significance of the Shrinkage Rate item attribute? A. The expected reduction in demand within the planning fence B. The average loss of material during manufacturing or storage C. The expected decrease in the rate of production of units during manufacturing D. The expected percentage (%) loss of quality of an item during the manufacturing process or storage Correct Answer: B

12 /Reference: QUESTION 31 Which two statements are true regarding Inventory replenishment methods? (Choose two.) A. Kanban replenishment signals are manual. B. Kanban replenishment signals are automatic. C. Reorder point planning can be performed at the sub inventory level. D. Min-max planning considers lead time and is not based on demand projections. E. Replenishment counting enables you to perform counts for no tracked sub inventories, and then direct Inventory to check these counts against the minimum quantities that you have specified. Correct Answer: AE /Reference: QUESTION 32 Which is the best method for replenishing free stock items that are stored 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) E. Enabling the Bulk Picked item master attribute Correct Answer: C /Reference: QUESTION 33 Available to Promise (ATP) 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 sub inventory level E. as a function of backward unconsumed forecast Correct Answer: A /Reference: QUESTION 34 How many distinct ABC Compile Names can exist at a given time in an inventory organization?

13 A. an unlimited number of names B. only one for each sub inventory C. only one per inventory organization D. One for each sub inventory and one for each inventory organization Correct Answer: A /Reference: QUESTION 35 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 sub inventory level only C. performed at the inventory organization or individual sub inventory level D. performed at the individual sub inventory level with a choice to include the same items from all subinventories in the organization Correct Answer: C /Reference: QUESTION 36 Which three statements are true about 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. An ABC Analysis can be compiled for nonasset (expense) subinventories for which quantities are tracked. D. An ABC Analysis can be compiled for a sub inventory that is defined as a non-quantity-tracked sub inventory. E. In ABC Analysis, a quantity variance must always be submitted for approval, regardless of the tolerance levels. F. Positive and negative tolerances can be entered for each class, which will override the tolerance at the cycle count header level. Correct Answer: ACF /Reference: QUESTION 37 Identify three levels at which you can generate cycle count requests and perform cycle counting under a single cycle count name. (Choose three.) A. by Item Category B. for all subinventories

14 C. by Item Category Set D. by bonded Warehouse E. for a specific sub inventory F. by specific Stock Locator G. for a selected set of subinventories Correct Answer: BEG /Reference: QUESTION 38 Identify five valid steps in defining a Physical Inventory. (Choose five.) A. Void unused or lost tags. B. Reconcile Cost of Goods updates. C. Allow only WIP and purchasing transactions. D. Take a snapshot of system on-hand quantities. E. Approve or reject Physical Inventory adjustments based on approval tolerances. F. Automatically post adjustments to inventory balances and general ledger accounts. G. Define a Physical Inventory for your whole warehouse or subinventories within your warehouse. H. Run the Physical Inventory variance report for the controller to credit or debit an entry on the cost of goods sold. Correct Answer: ADEFG /Reference: QUESTION 39 What is the purpose of the Physical Inventory Snapshot? A. to permit the entry of inventory transactions B. to prevent the entry of inventory transactions C. to provide the opening balance value for the fiscal period. D. to provide the baseline for comparison of physical count quantities against system on-hand quantities. Correct Answer: D /Reference: QUESTION 40 Which two statements apply to a Physical Inventory Tag as defined by Inventory? (Choose two.) A. Physical Inventory Tags cannot be bar coded. B. It can contain a count for a group of a given item. C. It is produced and printed by the Generate Physical Inventory Tags function.

15 D. It is unique for every stock locator/item/lot number/serial number combination. E. It is used to indicate to the warehouse staff that a count has been recorded for that location, so that a duplicate count is not performed. Correct Answer: BD /Reference: QUESTION 41 Cycle count variance approval tolerances have been defined for a cycle count. The Approval required option in the cycle count has been set to: If out of tolerance. When an item count exceeds the approval tolerance specified, 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 after approval Correct Answer: B /Reference: QUESTION 42 ACME requires cycle counting variance approval tolerances and the Approval Required option is set to: If out of tolerance. When the actual count falls within tolerance, 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 Correct Answer: A /Reference: QUESTION 43 ACME requires cycle counting variance approval tolerances. The Approval Required option is set to: If out of tolerance and Automatic Recounts is set to three. When the first cycle count actual quantity exceeds the item approval tolerance, 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 Correct Answer: C

16 /Reference: QUESTION 44 Which two reports detail pending inventory adjustments for a count? (Choose two.) A. Cycle Count Listing B. Physical Inventory Tag Listing C. Physical Inventory Counts Report D. Physical Inventory Adjustments Report E. Cycle Counts Pending Approval Report F. Cycle Count Entries and Adjustments Report Correct Answer: DE /Reference: QUESTION 45 After several cycle counts have been performed, the client wants to identify those items that consistently require adjustment. Which report will help the client identify those items? A. Cycle Count Listing B. Cycle Count Hit/Miss Analysis C. Cycle Count Unscheduled Items Report D. Cycle Count Entries and Adjustments Report Correct Answer: D /Reference: QUESTION 46 For the profile option TP: INV Cycle Count Entries form to Background processing, what are the system requirements for it to be effective? (Choose two.) A. The Receiving Transaction manager must be active. B. The Cost Manager interface manager must be active. C. The Move Transaction interface manager must be active. D. The Material Transaction interface manager must be active. E. The Lot Move Transaction interface manager must be active. Correct Answer: BD /Reference:

17 QUESTION 47 The client uses an external application as the source for cycle counts. What value should be used for the profile option INV: CCEOI Commit Point to ensure successful processing of the Import Cycle Count Entries from Open Interface concurrent program consistently? A. Create B. Process C. Simulate D. A number Correct Answer: D /Reference: QUESTION 48 What is the purpose of the profile options INV: CCEOI Commit Point and INV: CCEOI Workers? A. to provide a baseline for generating cycle count tags B. to set default values for the frequency of automatic cycle count requests C. to set default values for the Import Cycle Count Entries from Open Interface concurrent program D. to limit the actions permitted when reviewing cycle counts imported from an external system using the Cycle Count Entries Open Interface Correct Answer: C /Reference: QUESTION 49 What are the prerequisites for performing an accurate ABC Compile for inventory items using the Current onhand value as the compile criterion? A. items costed only B. items with on-hand quantity only C. either items with on-hand quantity or items costed D. Both items with on-hand quantity and items costed Correct Answer: D /Reference: QUESTION 50 For performing an ABC analysis, you need to define ABC Compile, ABC Classes, and ABC Assignment Groups. Identify two correct actions. (Choose two.) A. Link an ABC Group to an ABC Compile. B. Link an ABC Compile to an ABC Group.

18 C. Assign an ABC Group to an ABC Class. D. Assign an ABC Class to an ABC Group. E. Enable an ABC Group in Sub inventories. Correct Answer: BD /Reference: QUESTION 51 ACME is using cycle counting and the quantity variance approval tolerances are specified at the cycle count header level, cycle count Class level, and cycle count item level. When tolerances are set up at all the levels, which tolerance is considered first by Inventory? A. Unit cost level B. Subinventory level C. Cycle count item level D. Cycle count Class level E. Cycle count header level Correct Answer: C /Reference: QUESTION 52 ACME has specified both quantity variance and adjustment value approval tolerances at the cycle count header level only. The Approval Required option is set to: If out of tolerance. Inventory automatically approves the actual count entered when. A. the cycle count quantity entered for an item falls within the quantity variance tolerance B. the cycle count quantity entered for an item falls within the adjustment value approval tolerance C. the cycle count quantity entered for an item falls within either the quantity variance tolerance or the adjustment value approval tolerance D. the cycle count quantity entered for an item falls within both the quantity variance tolerance and the adjustment value approval tolerance Correct Answer: D /Reference: QUESTION 53 Which Inventory table stores the item attribute values assigned to a system item? A. MTL_SYSTEM_ITEMS_B B. MTL_ITEM_ATTRIBUTES C. MTL_ITEM_TEMPLATES_B D. MTL_STATUS_ATTRIBUTE_VALUES

19 Correct Answer: A /Reference: QUESTION 54 Which Inventory table stores reservations information generated for sales orders? A. MTL_DEMAND B. MTL_SALES_ORDERS C. OE_ORDER_LINES_ALL D. MTL_GENERIC_DISPOSITIONS Correct Answer: A /Reference: QUESTION 55 Items assigned the Primary Key: CATEGORY_SET_ID are. A. restricted to a single Category Set B. required by MTL_SYSTEM_ITEMS_B C. not restricted to a single Category Set D. required by MTL_CATEGORY_SET_VALID_CATS Correct Answer: C /Reference: QUESTION 56 An item reserved at the S/N level is associated with. A. MTL_SALES_ORDERS B. MTL_SERIAL_NUMBERS C. MTL_CMRO_ALLOC_ALL D. OE_ORDER_HEADERS_ALL Correct Answer: B /Reference: QUESTION 57 Which three pieces of information does the etrm Technical Reference provide access to? (Choose three.)

20 A. data dictionaries B. available patches C. logical data models D. application white papers E. table relationship diagrams F. cross-platform performance information Correct Answer: ACE /Reference: QUESTION 58 In the etrm Technical Reference, where can you find the workflows associated with an application? A. PDF files B. FND data C. DBA data D. HTML files Correct Answer: B /Reference: QUESTION 59 Your client has material that varies in size, weight, and container type. It wants to have flexibility in creating locators based upon receipt of goods. Which Locator Control type would accommodate this requirement? A. None B. Item Level C. Prespecified D. Dynamic Entry E. Subinventory Level Correct Answer: D /Reference: QUESTION 60 Review the organization structure regarding the inventory organizations (IO) and sales organizations (SO). The sales organizations would not transact inventory items. IO 2 would not be used right away, but would be created during the implementation. What is the minimum number of subinventories required for this implementation? A. four (one for each IO being utilized at implementation) B. five (One for each IO. SOs would not require subinventories.) C. eight (Inventory and sales organizations require a minimum of one sub inventory each.)

21 D. 10 (Each IO requires at least two subinventories, one for receiving and one for shipping.) E. 16 (Each IO and SO should have at least two subinventories, one for receiving and one for shipping.) Correct Answer: B /Reference: QUESTION 61 An inventory organization can be defined as a facility where you can store and transact items. They can be either physical or logical entities. Select four common inventory organizations. (Choose four.) A. Office Site B. Item Master C. Warehouse D. Inspection Dock E. Distribution Center F. Manufacturing Site G. Human Resources H. Receiving Location Correct Answer: BCEF /Reference: QUESTION 62 You are required to transact an interorganization transfer for Item A. Before the transfer, you must determine and define. A. planning lead times B. material ownership during transfers C. a shipping network between the organizations D. the general ledger accounts to be used in transit Correct Answer: C /Reference: QUESTION 63 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. sub inventory level 3. inventory organization level A. 1 only B. 2 only C. 3 only D. 1 and 3

22 E. 1 and 2 F. 2 and 3 G. 1, 2, and 3 Correct Answer: C /Reference: QUESTION 64 Your client wants to ensure that backflush operations can continue even if the inventory level is driven below zero. At the same time, they want typical inventory transactions to be prevented from driving inventory levels below zero. Which configuration meets this requirement? A. Org Profile option to Allow Negative Balances = No; Profile option for INV: Override Neg for Backflush = No. B. Org Profile option to Allow Negative Balances = No; Profile option for INV: Override Neg for Backflush = Yes. C. Org Profile option to Allow Negative Balances = Yes; Profile option for INV: Override Neg for Backflush = No. D. Org Profile option to Allow Negative Balances = Yes; Profile option for INV: Override Neg for Backflush = Yes. Correct Answer: B /Reference: QUESTION 65 Your client has two inventory organizations (INV ORG 1 and INV ORG 2). The organizations have different business requirements for stock locator control: INV ORG 1: Locators must have: Building identified Stockroom designated Row Rack Bin INV ORG 2: Locators must have: Row Rack Bin Position within Bin Which solution would meet both organizations' requirements? A. Establish stock locator flexfields as five segments. INV ORG 2 can use the first segment as Row. B. Establish stock locator flexfields as four segments. INV ORG 2 can use DFF for Position within Bin. C. Establish stock locator flexfields as five segments. INV ORG 2 can leave the fifth segment with a default value. D. Establish stock locator flexfields as four segments. INV ORG 1 can create DFF and use that as Building identifier. E. Establish stock locator flexfields as six segments. INV ORG 1 can create locators where the sixth segment can be a default value. Correct Answer: C /Reference: QUESTION 66 Company ABC is using serialization in all organizations that manage inventory. It wants each organization to determine the proper levels of serial control. The products in each organization are completely different, so

23 having the same serial numbers on different products is acceptable. The only global requirement is that serial numbers be generated in advance, to prevent incorrect serial number types from being created. Using the table below, choose the cell that represents the correct parameter and attribute combination to meet Company ABC's needs. A. B B. C C. F D. H E. K F. L Correct Answer: A /Reference: QUESTION 67 A customer is in the process of setting up a warehouse in the Oracle system. The customer wants the whole warehouse to be a sub inventory with the following requirements: 1) Have bins in the warehouse to store material. 2) Track some high-dollar items by quantity and the bin in which they reside. 3) Track low-dollar parts, such as nuts and bolts, by quantity, but the customer does not want the overhead of specifying the bin in which they should reside. What would you do to meet this requirement? A. Set up the sub inventory with Locator Control set to Prespecified. B. Set up the sub inventory with Locator Control set to Dynamic Entry. C. Set up the sub inventory 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 sub inventory with Locator Control set to Item Level control; for items that should be tracked by bin, set Locator Control to Dynamic Entry. Correct Answer: D /Reference: QUESTION 68 You are working on setting up subinventories for the client's organization. The client wants to call the sub inventory DAYTONS-20STOCKROOM. The system does not let you create this sub inventory. What is the problem? A. The sub inventory name cannot have the - sign. B. The sub inventory name cannot have numbers in it. C. The sub inventory name cannot have an apostrophe. D. The sub inventory name cannot be longer than 10 characters. Correct Answer: D /Reference:

24 QUESTION 69 You are defining the staging sub inventory for your sales order pick release rule. Which flag should be enabled (checked) for the rule to work properly? A. Nettable B. Depreciable C. Locator Alias D. Asset Subinventory E. Allow Reservations F. PAR (Periodic Automatic Replenishment) Level Planning Correct Answer: E /Reference: QUESTION 70 Which two statements about the Stock Locators flexfield are true? (Choose two.) A. Stock Locators is set up as a key flexfield. B. Stock Locators 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 Locators flexfield. E. You have the flexibility to set up segments of the Stock Locators as mandatory or not mandatory. Correct Answer: AE /Reference: QUESTION 71 Your client wants approvals for Move Orders to occur after 30 days. Based on the Move Order approval workflow, how would you enter the values for Move Order Timeout Period and Move Order Timeout Action? A. Timeout Period = 30, Action = Reject Automatically B. Timeout Period = 15, Action = Reject Automatically C. Timeout Period = 0, Action = Approve Automatically D. Timeout Period = 30, Action = Approve Automatically E. Timeout Period = 10, Action = Approve Automatically F. Timeout Period = 15, Action = Approve Automatically Correct Answer: F /Reference: QUESTION 72 There is a region called Inter-Organization Transfer Accounts in the Organization Parameters form, on the

25 Inter-Organization tab. What is the meaning of the "Payables" field in this region? A. The default general ledger account that is used to collect transfer charges when this organization is the shipping organization. This is usually an expense account. B. The default general ledger account that is used to hold intransit inventory value. This is usually an asset account. For average cost organizations, this account is the default material account. C. The default general ledger account that is used to collect the purchase price variance for interorganization receipts into standard cost organizations. This is usually an expense account. D. The default general ledger account that is used as an interorganization clearing account when this organization is the shipping organization. This is usually an asset account. E. The default general ledger account that is used as an interorganization clearing account when Correct Answer: E /Reference: QUESTION 73 Company X has a single Inventory Organization. It wants to monitor aged material. Specifically, it needs to ensure that its products have the most current calibration. Profile Option INV: FIFO for Original Receipt Date has two selections. Which selection is correct? A. INV: FIFO for Original Receipt Date = No. Original receipt date is lost upon issue. B. INV: FIFO for Original Receipt Date = Yes. Original receipt date would be retained until material is picked for shipping. C. INV: FIFO for Original Receipt Date = Yes. Original receipt date would be retained until material is issued out of inventory. D. INV: FIFO for Original Receipt Date = No. Original receipt date is retained until new inventory is positioned in the same locator. E. INV: FIFO for Original Receipt Date = Yes. Original receipt date would be retained until material is moved to nonnettable sub inventory. Correct Answer: C /Reference: QUESTION 74 Profile options can be either required or optional. All required options must have a value. Which two profile options are required when setting up Oracle Inventory? (Choose two.) A. INV: Validate Returned Lot B. INV: Accounting Category Set C. INV: Restrict Receipt of Serials D. INV: Default Primary unit of measure E. INV: Replenishment Move Order Grouping Correct Answer: BD

26 /Reference: QUESTION 75 Evaluate the settings below: From To Transfer Type FOB Receipt Routing Org 1 Org 2 Intransit Receipt Direct Org 2 Org 1 Intransit Shipment Standard At what point would ownership transfers occur during shipments between the organizations? A. As soon as Org 1 performs Ship Confirm, ownership is transferred to Org 2 immediately. B. Both organizations own the material upon receipt only because Transit Type is Intransit. C. When shipping from Org 1 to Org 2, Org 1 owns the material until Org 2 processes a receipt against shipment number. D. When shipping from Org 2 to Org 1, ownership changes, and Org 2 owns the material until Org 1 processes a receipt against shipment number. Correct Answer: A /Reference: QUESTION 76 Review the organization structure regarding the inventory organizations (IO) and sales organizations (SO).The Company has defined shipping networks based on these policies: Inventory Organizations within an Operating Unit (OU) can perform shipments to the Sales Organizations only within the same OU. An Inventory Organization can ship to any other Inventory Organization in the company. The only exception to the rule is China, which can ship to any US organization. Which sites can IO 3 ship to? A. IO 2, IO 4, IO 5, SO 3 B. IO 1, IO 2, IO 3, IO 4, IO 5 C. IO 1, IO 2, IO 4, IO 5, SO 3 D. IO 2, IO 3, IO 4, IO 5, SO 3 E. IO 1, IO 2, IO 4, IO 5, SO 1, SO 2, SO 3 Correct Answer: C /Reference: QUESTION 77 Your client is using Oracle Inventory without Warehouse Management System (WMS). It wants to establish control for several pieces of equipment using the Warehouse Control System (WCS) feature. What is the solution? A. Enable WCS and run the appropriate concurrent program. B. Create separate interfaces for each piece of equipment. C. Create one interface that includes all pieces of equipment. D. You cannot satisfy this requirement because WCS has to be used with WMS. E. Enabling WCS is not necessary to meet this requirement; this can be done using third-party software. Correct Answer: D

27 /Reference: QUESTION 78 What is the correct sequence when defining Units of Measure (UOM)? A. UOM Class, UOM, UOM Conversions B. UOM Class, UOM Conversions, UOM C. UOM Conversions, UOM Class, UOM D. UOM Conversions, UOM, UOM Class E. UOM, UOM Class, UOM Conversions Correct Answer: A /Reference: QUESTION 79 A purchase order is created for item A with UOM = BX (box). The primary UOM = PK (pack) and the secondary UOM is BX. A shipment arrives for 12 boxes. The UOM conversion is 1 BX = 10 PK. Which UOM should the receiver use, and how would the inventory on-hand (OH) change? A. Receive 120 PK. This is the primary UOM and should be used for receipt. B. Receive 12 PK. Conversion would occur after receipt. OH would show 120 PK. C. Receive 12 BX. OH would be updated with primary UOM and would increase by 120 PK. D. Receive 12 BX. OH would not be converted; actual UOM would be used. OH would be updated with 12 BX. Correct Answer: C /Reference: QUESTION 80 You define a UOM Class for Volume. Which grouping represents the Volume class? A. Liter, gallon, milliliter, pint B. Kilometer, meter, mile, yard C. Liter, milliliter, kilometer, meter D. Liter, gallon, milliliter, centimeter E. Kilometer, meter, cubic yard, cubic meter F. Kilometer, meter, centimeter, cubic centimeter Correct Answer: A /Reference: QUESTION 81

28 You have an item that has four different units of measure (UOMs) defined for usage. They are Each, Pack, Box, and Case. 1 Pack = 24 Each 2 Packs = 1 Box 4 Boxes = 1 Case What conversions need to be established to accommodate these four relationships? A. Each =1, 1 Pack = 24 Each, 1 Box = 24 Each, 1 Case = 96 Each B. Each = 1, 1 Pack =24 Each, 1 Box = 48 Each, 1 Case = 192 Each C. Each = 1, 1 Pack =24 Each, 1 Box = 48 Each, 1 Case = 168 Each D. Each = 1, 1 Pack = 24 Each, 1 Box = 240 Each, 1 Case = 240 Each E. Each = 1, 1 Pack = 12 Each, 1 Box = 480 Each, 1 Case =1920 Each F. Each = 1, 1 Pack = 24 Each, 1 Box = 480 Each, 1 Case = 1920 Each Correct Answer: B /Reference: QUESTION 82 Which two statements are true regarding lot-based unit of measure (UOM) conversions? (Choose two.) A. You cannot update existing on-hand balances for lot-based UOM conversions. B. You can create lot-specific UOM conversions for on-hand lots or lots with a zero balance. C. You cannot create lot-specific UOM conversions for on-hand lots or lots with a zero balance. D. During a PO receipt, the lot-based conversion cannot be updated if the lot does not match existing conversion rates. E. Updating the on-hand balance on a lot-based UOM conversion requires a cycle count transaction with the lot number provided in the count record. Correct Answer: BD /Reference: QUESTION 83 ABC Company has one distribution center and one manufacturing plant. Both the distribution center and manufacturing plant have identical items that are specific to their organization. You are required to design the item repository structure for both organizations. What is your recommendation for the item repository structure? A. Create two master organizations, one for the distribution center and the other for the manufacturing plant. B. There is no need for an item master organization. The distribution center and manufacturing plant items are loaded in two organization items. C. Set it up so that manufacturing plant items are loaded in the item master organization and distribution center items are loaded in organization items. D. Set it up so that distribution center items are loaded in the item master organization and manufacturing plant items are loaded in organization items. E. Create one item master that holds both distribution center and manufacturing plant items. Assign the respective master item to the distribution center and manufacturing plants. Correct Answer: E

29 /Reference: QUESTION 84 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 - Operating unit 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 two statements are true? (Choose two.) 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. You can define an item in IN1 inventory organization and assign it to GE1 inventory organization. E. Items defined in VC organization can be assigned to US1,US2, NL1, and MX1 inventory organizations. Correct Answer: CE /Reference: QUESTION 85 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. The manager would like to know how to correct the items. Which three statements are true? (Choose three.) A. Apply the template in the organization item. It would automatically update the Master Item window. B. You can use the Item Attribute Copy form to update the value of an item attribute across multiple organizations in a given organization hierarchy. C. 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. D. You can use the Organization Item window to update organization-level item attributes. This would update organization-level attributes in your current organization only. E. 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. Correct Answer: BDE /Reference: QUESTION 86 The following table shows the values for quantity variance and adjustment value tolerances for an item in a cycle count: Item Attribute Values are: 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 needs an approval for both Positive Quantity Variance and Positive Adjustment Value? A. The count quantity equals 73.

30 B. The count quantity equals 88. C. The count quantity equals 106. D. The count quantity equals 122. E. The count quantity equals 120. Correct Answer: D /Reference: QUESTION 87 Which three statements are true about the item master? (Choose three.) A. It is possible to copy items across item master organizations. B. The item master organization is the centralized repository for all items in different organizations. C. It is possible to associate items in one item master organization with another item master organization. D. When an attribute control is set at the item master level, updates are not allowed at the item or organization level. E. There is no functional or technical difference between the item master organization and other organizations while transacting on an item. F. When an attribute control is set at the item master level, updates can still be made at the item or organization level but these updates would not propagate back up to the item master level. Correct Answer: BDE /Reference: QUESTION 88 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 sub inventory and locator the material needs to go to. ABC wants the sub inventory and locator to be automatically populated for that item. Which option would solve the problem? A. Populate the completion sub inventory and locator on the routing for that item. B. Use the restrict sub inventory and restrict locator flag on the Item Master record of that item. C. Populate the supply sub inventory and locator fields on the Item Master record for the purchased item. D. Use the Item Transactions Default form to create default sub inventory and locators for the purchased item. Correct Answer: D /Reference: QUESTION 89 There are no interdependent attributes. Which three statements are true about defining an item using a template? (Choose three.) A. You can apply multiple templates to an item.

31 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. Modifying an item template would automatically update the items that were previously defined using that template. E. Template application is exclusive. If you apply a second template to an item, the item would not retain any values of the prior template. F. A template applied to a master item, which has already been assigned to a child organization, can still update the organization-controlled item. G. Template application is additive. If you apply a second template to an item, the item would retain the values of all the attributes that were not enabled by the second template. Correct Answer: ACG /Reference: QUESTION 90 You applied a subassembly template for an item at the master level. Four main attributes of the subassembly template are: - primary unit of measure (UOM): EA - minimum order quantity - maximum order quantity: 10 - fixed lead time: 2 After applying the template, you find that the attributes are not correct. You correct the template with these attributes: - primary UOM: LB - minimum order quantity: 7 - maximum order quantity: 12 - fixed lead time: 4 You reapply the template. Which attributes are updated in the item? A. primary UOM: LB, minimum order quantity: 7, maximum order quantity: 12, fixed lead time: 4 B. primary UOM: LB, minimum order quantity: 5, maximum order quantity: 10, fixed lead time: 2 C. primary UOM: EA, minimum order quantity: 5, maximum order quantity: 10, fixed lead time: 4 D. primary UOM: EA, minimum order quantity: 7, maximum order quantity: 12, fixed lead time: 4 E. primary UOM: EA, minimum order quantity: 5, maximum order quantity: 12, fixed lead time: 2 Correct Answer: D /Reference: QUESTION 91 You are defining a template by choosing contradictory item attributes (for example, stockable enabled, inventory item disabled, and so on). How would the system respond? A. The system automatically corrects the item attribute setting during template creation. B. The system would validate contradictory item attributes. Warning messages would appear while saving the item template. C. The system would not validate contradictory item attributes during template creation or while applying the template to the item. D. The system would not validate contradictory item attribute settings in the template window. Validation occurs while applying the template to the item. E. The system would not validate contradictory item attribute settings during template creation. It would automatically correct the attribute settings while applying the template to the item. Correct Answer: D