Oracle SCM Functional Interview Questions & Answers - Inventory Module – Part VII

Oracle SCM Functional Interview Questions & Answers - Inventory Module – Part VII

Is it possible to define safety stock for an item at subinventory level?

No. The safety stock can be defined only at organization level.

What are the two methods adopted by Oracle Inventory to calculate the Safety Stock if it is generated by the system?

Mean Absolute Deviation (MAD) Method:

In this method, the Safety Stock = Z x (1.25 x MAD) where Z is the number from the normal distribution probabilities corresponding to the service level specified by the user and MAD is the mean absolute deviation of the historic forecasts from the actual demand.

Percentage of Forecast Demand Method:

In this method, the Safety Stock = Forecast Demand x Safety Stock % / 100

How does Oracle Inventory arrive at the time of creating an Order, for an ROP planned item?

The Order is raised when the, (On-Hand Qty. + Planned Receipts) < (Forecast Demand + Safety Stock) during lead-time.

How does Oracle Inventory arrive at the size of the Order for an ROP planned item?

The Order size will be the Economic Order Quantity (EOQ), EOQ = Sq.root of (2 x Annual Cost x Order Cost) / Carrying Cost.

Replenishment Count planning is adopted to replenish items of what type of Subinventory?

Replenishment Count planning is adopted to replenish items in Expense Subinventory.

Can we use the Replenishment Count planning for an item assigned to an Asset Subinventory (Qty. tracked)?

It can be used, provided that we give one of the following two information in addition to the item and Subinventory.

Order Quantity: Specify the Qty. that is to be ordered (Or) Order Max. Qty.: Inventory orders the Min-Max, maximum qty.

What is the very primary step that is to be taken before starting the first transaction in a new organization?

Open the Inventory Accounting Periods.

Navigation:

India Local Inventory Responsibility > Oracle Inventory > Accounting Close Cycle > Inventory Accounting periods.

How will you receive substitute items?

First define item relationships. If substitutes are defined in the item relationship window, we will get a list of substitutes while receiving the items from which we can choose the required substitute.

Set ‘Allow Substitute Receipts’ to you in the Receiving Option, Item Attribute and Supplier.

How many Interface Managers are there? What do they do?

There are four Interface managers:

Cost manager

Demand reservation

Material transaction

Move transaction

The Transaction Manager run at periodic intervals, as per the period we set for each Manager so that they execute the processes like resource Cost transaction, Demand Reservation, Material Transaction and Move Transaction.

How will you transfer the Transaction details into GL?

If ‘Transfer to GL’ in organization definition is set to Yes, we can transfer the details through the Navigation:

India Local Inventory Responsibility > Oracle Inventory > Accounting Close Cycle > General Ledger Transfer.

The transfer is done for specific periods.

How will you print a receipt note for each shipment received?

Set the profile option ’RCV: Print Receipt Traveler’ to Yes.

In the Organization definition we enter the mode of inter-Org Transfer Charge; but where will you enter the actual charge value?

In the ‘Add Value’ field of Transaction Lines in Inter-Org. Transfer.

While defining a Forecast, we don’t mention about the Forecast Rule. Then what is the use of a Forecast Rule?

The Forecast Rule is used if the system generates a forecast from the historical data.

If the Receiver of an item should not change the Ship-to-Location mentioned in the PO, how will you ensure this?

Set ‘Enforce Ship-To-Location’ to Yes in the following areas:

1.     Item Attributes.

2.     Receiving Options.

Which are the Destination type that can be there for an item to be being received?

Receiving, Inventory, Shop floor and Expense.

Reference: Collected from various web sources.

Please do refer below links for Oracle SCM Functional interview questions & Answers on inventory module.

http://learnoraclecsbscm.blogspot.in/2015/05/oracle-inventory-scm-functional.html

http://learnoraclecsbscm.blogspot.in/2015/08/oracle-scm-functional-interview.html

http://learnoraclecsbscm.blogspot.in/2015/08/oracle-scm-functional-interview_9.html

http://learnoraclecsbscm.blogspot.in/2015/09/oracle-scm-functional-interview_28.html

http://learnoraclecsbscm.blogspot.in/2015/10/oracle-scm-functional-interview_10.html

http://learnoraclecsbscm.blogspot.in/2015/10/oracle-scm-functional-interview_12.html