Oracle SCM
Functional Interview Questions & Answers - Inventory Module – Part IV
What is
inventory control?
Inventory control is the process of reducing inventory costs while
remaining responsive to customer demands. By this definition a store would want
to lower its acquisition, carrying ordering and stock-out costs to their lowest
possible levels. However a store would need to have enough inventories to meet
any needs of its customers.
What does
inventory affect in a store?
Inventory levels and their values can affect the income of the store,
the amount of taxes paid, and the total stocking cost.
How can the
value of inventory be determined?
The value can be found using four methods in inventory control.
Standard Cost: The specific cost in which each item's cost is
added together for the inventory's value.
Average Cost: The weighted average of the costs for a period
to determine value.
FIFO Cost: First In First Out. In this method value is
measured using the latest costs of goods while working towards the beginning of
the period until all goods in inventory are valued.
LIFO Cost: Last In First Out. In this method the costs of
gods at the beginning of the period are used to determine the inventory's value
much like FIFO.
What are
the important considerations in inventory control?
For inventory control to work at its best a store must consider the
costs of acquisition, carrying, ordering, and stock-out. The store must also
look at its reordering system, its budgeting for inventory, insurance and forecasted
demand.
Will the
changes made in a Workday calendar comes into effect after saving?
No. The changes made into a Workday calendar will come into effect
only after Building the Calendar.
How
different weekly offs can be assigned to different shifts without doing it
manually?
Suppose Monday is the Calendar Start day and we want Thursday as
weekly off for 1st shift and Friday for 2nd shift, enter the ‘Workday Pattern’
for 1st as 3 On 1 Off and 3 On 0 Off. This means that Monday, Tuesday and
Wednesday are working days, Thursday is off and Friday, Saturday and Sunday are
again working days, for any week for 1st shift. And for 2nd shift enter
the Workday Pattern as 4 on 1 off and 2 on 0 off.
What is an
Organization?
An Organization is an inventory location with its own Set of Books,
Costing Method, Workday Calendar and List of items.
What is a
Sub inventory?
A Sub inventory is used when two physical inventory locations share
the same Set of Books, Costing Method, Workday Calendar, but different list of
items.
How will
you that a location is available for transaction in all Organizations?
While defining the Location, don’t attach an Organization to it so
that the location can be used for any organization
What is the
difference between Internal and External Organizations?
The difference between Internal and External Organization is that we
cannot assign people to an External Organization.
Examples of External Organizations:
Workers Compensation Insurance Carriers.
Organizations that are recipients of third party payments from
Employee’s benefits.
What is an
Item Master Organization?
The organization in which the items are defined is called the Item
Master Organization. Child Organizations (other organizations) refer to the
Item Master for the item definition. There is no functional or technical
difference between the Item Master Organization and other Organizations.
However, for simplicity, it is recommended to limit the item master to just for
an item defining organization.
Is it
possible to have different costing methods for different organizations under
the same Item Master Organization?
Yes. Even we can have dummy organizations for using different costing
method for different costing method for different items within an organization.
Can we use Average
Costing in an organization where WIP is also installed?
No. We can’t use Average Costing if WIP is installed.
What shall
be the Costing Organization of an Org?
If individual organization wants to have control over its own cost, we
will assign the current organization itself as the Costing organization. If
that is not the case, we can assign the Item Master Organization or any other
organization as the costing organization.
What are the
Inventory material transactions interface tables.
Material Transactions Interface Tables are:
mtl_transactions_interface,
mtl_transactions_lots_interface,
mtl_serial_numbers_interface,
mtl_interface_errors
In which table the
inventory material transactions history data is maintained after running the
interface program.
Material transactions data are maintained in “mtl_material_transactions”
table.
In which table the
onhand quantities of the items exist?
On-Hand quantities of the items are stored in “mtl_onhand_quantities”
table.
In which table the
subinventories are stored?
Sub inventories are stored in “mtl_secondary_inventories”
table.
In which table the
locators are stored?
Location information is stored in “mtl_item_locations”
table.
Reference:
Collected from various web sources.
Please do refer below links for Oracle SCM Functional interview
questions & Answers on inventory module.
Good Blog, thanks for sharing this information.
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