1z0-1163-1 Oracle Fusion Cloud Applications SCM Foundations Associate - Rel 1 Questions and Answers

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.

The primary advantage ofReplenishment Planning (A)is ensuring optimal inventory levels by predicting demand and adjusting supply plans accordingly. It uses demand signals—e.g., a forecast of 500 units for next month—to trigger timely replenishments, avoiding overstock (costly) or stockouts (lost sales). Option B is incorrect—static levels defy dynamic demand; Replenishment Planning adapts to fluctuations. Option C is false—demand forecasting is its foundation. Option Dis unrelated—payment cycles are a financial process. For instance, if demand spikes unexpectedly, it recalibrates orders, saving costs and maintaining service levels, a key operational benefit.

Replenishment Planning (D)in Oracle Fusion Cloud SCM ensures inventory levels are maintained efficiently by predicting demand and adjusting supply plans to replenish stock proactively. It uses forecasts and safety stock rules—e.g., ordering 300 units when stock falls to 50 and demand is expected to rise—to prevent shortages or excess inventory. Option A (Supplier Qualification) focuses on supplier evaluation, not inventory maintenance. Option B (Cost Accounting) tracks financials, not stock levels. Option C (Manufacturing Execution) manages production, not replenishment. Replenishment Planning optimizes inventory turnover, reduces carrying costs, and ensures product availability, making it a proactive inventory management tool.

Global Order Promising (GOP) in Oracle Fusion Cloud SCM provides real-time order promising by evaluating supply and demand constraints across the enterprise, ensuring accurate delivery commitments. Option A is incorrect as GOP considers global, not just local, availability. Option C is false—it doesn’t guarantee a 24-hour fulfillment but provides feasible timelines. This enhances customer satisfaction and planning accuracy.

The Supply Chain Collaboration feature in Oracle Fusion Cloud SCM facilitates real-time communication between suppliers and buyers through tools like the Supplier Portal, improving visibility into supply chain activities such as order status and inventory levels. Option A is incorrect as it involves supplier interaction, not just internal reporting. Option B is false—contracts remain essential. This collaboration enhances coordination and responsiveness across the supply chain.

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.

Spend Analysis (B)is the cornerstone of the Insight to Sourcing OMBP in Oracle Fusion Cloud SCM, as it involves categorizing and analyzing historical spending data to uncover cost-saving opportunities and inform strategic sourcing decisions. By examining past expenditures—e.g., identifying that 70% of spending on raw materials comes from a single supplier—businesses can negotiate better terms, consolidate suppliers, or shift to lower-cost alternatives, optimizing procurement costs. Option A (Idea Generation) is a preliminary step focused on innovation and market trends, not the core analytical activity driving sourcing. Option C (Performance Monitoring) evaluates supplier performance post-sourcing, not the initial insight process. For instance, Spend Analysis might reveal excessive spending on expedited shipping, prompting a shift to local suppliers, directly impacting cost efficiency and procurement strategy. This data-driven approach ensures decisions are grounded in financial reality, making it fundamental to the OMBP.

Contract Fulfillment Automation (C)in Oracle Fusion Cloud Procurement automates the creation of purchase orders (POs) directly from contract terms, streamlining the procurement process. This feature uses predefined contract details—such as items, quantities, pricing, and delivery schedules—to generate POs without manual intervention. For example, if a contract stipulates 1,000 units of a product at $10 each over six months, Contract Fulfillment Automation triggers POs as needed (e.g., 200 units monthly), ensuring accuracy and compliance with the agreement. Option A (Receipt Accounting) records goods received, not PO creation. Option B (Supplier Portal) enables supplier interaction but doesn’t automate PO generation from contracts. Option D (IDR) extracts data from documents like invoices, not contracts for PO creation. This automation reduces errors (e.g., mismatched quantities), saves time, and ensures procurement aligns with negotiated terms, enhancing efficiency and supplier relationships.

TheSupplier 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.

Supplier Qualification Management (D)assesses and approves suppliers based on compliance (e.g., regulatory standards) and performance criteria (e.g., delivery reliability). For example, it might evaluate a supplier’s 95% on-time delivery rate and ISO certification before approval. Option A (Cost Accounting) tracks costs, not supplier quality. Option B (Supplier Portal) facilitatescommunication, not qualification. Option C (Manufacturing Execution) manages production, not supplier vetting. This feature ensures reliable, high-quality suppliers, reducing supply chain risks and enhancing procurement outcomes.

Inventory Management in Oracle Fusion Cloud SCM ensures optimal inventory levels by tracking stock movement, availability, and replenishment needs across warehouses and supply chains. It monitors quantities on hand, in transit, and on order, using real-time data to prevent overstocking or stockouts. For instance, if a product’s stock drops below a reorder point, the system triggers a replenishment alert. Option A is incorrect—reducing supplier costs is a procurement goal, not Inventory Management’s focus, which is stock optimization. Option B is wrong as it manages warehouse stock, not just supplier shipments. This function balances inventory costs with service levels, supporting efficient operations and customer satisfaction by ensuring products are available when needed without tying up excess capital.

ThePredict Demand process (B)in Oracle Fusion Cloud SCM aims to forecast customer demand using advanced tools like machine learning and statistical forecasting. Machine learning analyzes historical sales, market trends, and external factors (e.g., weather or economic indicators) to predict future demand with high accuracy, while statistical forecasting provides a baseline using mathematical models like moving averages. For example, it might predict a 20% increase indemand for air conditioners in summer based on past patterns. Option A is incorrect—demand prediction isn’t limited to local inventory but informs broader supply planning. Option C is false; supplier collaboration remains essential to fulfill predicted demand. Option D is unrealistic—Predict Demand focuses on forecasting, not delivery guarantees. This process ensures businesses can proactively adjust inventory and production, reducing costs and improving service levels.