Oracle 1z0-1163-1 Practice Test Questions Answers

For the Demand to Management OMBP, Forecast Accuracy is the primary metric, as it evaluates how precisely demand predictions match actual market demand, a foundational step in effective supply chain planning. Calculated as a percentage (e.g., actual demand of 800 units versus a forecast of 850 yields 94% accuracy), it directly reflects the OMBP’s ability to drive downstream processes like procurement and production. Option B (Supplier Lead Time) measures supplier performance, which affects supply execution but not demand forecasting accuracy. Option C (Inventory Turnover) tracks inventory movement efficiency, an outcome influenced by forecast accuracy, not a direct measure of the OMBP itself. Accurate forecasts prevent overproduction or shortages—for example, overestimating demand by 20% could lead to $50,000 in excess inventory costs, underscoring the metric’s importance.

The Supply Chain Orchestration (SCO) process in Oracle Fusion Cloud SCM is a pivotal feature that automates the execution of supply chain tasks across multiple applications, including procurement, manufacturing, and inventory management. It ensures seamless end-to-end process integration by coordinating activities like order fulfillment, material transfers, and production scheduling. Option A is incorrect because SCO extends beyond warehouse operations to integrate with procurement and manufacturing. Option C is also inaccurate as SCO eliminates manual tracking by leveraging automation, improving efficiency and visibility across the supply chain. This capability reduces delays and enhances coordination, aligning with Oracle’s goal of a connected supply chain ecosystem.

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.

Available to Promise (ATP) (C)in Oracle Fusion Cloud SCM ensures product availability commitments by calculating how much inventory is available for new orders based on current stock and supply constraints like production schedules and supplier lead times. For example, if 100 units are on hand with 40 committed, ATP shows 60 units available, ensuring accurate promises. Option A (Cost Accounting) tracks financials, not availability. Option B (Supplier Portal) supports collaboration, not direct commitment calculations. Option D (Manufacturing Execution) manages production, not order promising. ATP’s real-time analysis prevents overpromising, aligning customer expectations with operational capacity.

Cost Rollup in Oracle Fusion Cloud SCM aggregates all cost components—material, labor, and overhead—to calculate the total cost of a product. This process rolls up costs from raw materials through production stages, providing a comprehensive view for pricing and profitability analysis. For example, producing a widget might involve $5 in materials, $3 in labor, and $2 in overhead; Cost Rollup totals this to $10 per unit. Option B is incorrect because it excludes materials and overhead, which are integral to the process. Option C is false—Cost Rollup reflects current costs, not fixed values, adapting to fluctuations like material price changes. This function supports accurate financial reporting, cost control, and strategic decision-making by revealing true production costs.