1z0-1163-1 Oracle Fusion Cloud Applications SCM Foundations Associate - Rel 1 Free Practice Exam Questions (2025 Updated)

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.

The Demand to Management Oracle Manufacturing Business Process (OMBP) in Oracle Fusion Cloud SCM focuses on translating demand signals into actionable supply plans, making Forecast Accuracy the key metric for measuring its effectiveness. Forecast Accuracy compares predicted demand to actual demand, revealing how well the system anticipates customer needs. For instance, if a forecast predicts 1,000 units sold but actual sales are 900, the accuracy is 90%, highlighting areas for improvement. Option A (Employee Turnover Rate) is an HR metric unrelated to demand management. Option C (Customer Acquisition Cost) pertains to marketing, not supply chain processes. Option D (Order Fill Rate) measures fulfillment efficiency, which is a downstream outcome, not a direct indicator of demand forecasting effectiveness. High forecast accuracy ensures inventory aligns with demand, reducing overstock or shortages, and supports strategic decision-making across procurement and production.

Inventory Management (D)in Oracle Fusion Cloud SCM ensures optimal inventory levels by tracking stock movement—receipts, transfers, and consumption—and maintaining availability data across warehouses. For example, if stock drops below a reorder point (e.g., 100 units), it triggers replenishment to avoid stockouts while preventing overstocking (e.g., holding 1,000 units when demand is 200). Option A (Supplier Qualification) evaluates suppliers, not inventory levels. Option B (Manufacturing Execution) tracks production, not overall stock. Option C (Cost Accounting) analyzes costs, not physical stock movement. Inventory Management balances service levels with cost efficiency, using real-time data to adjust stock dynamically, critical for operational success and customer satisfaction.

The Order Promising process in Oracle Fusion Cloud SCM, specifically through the Global Order Promising (GOP) module, aims to provide accurate and reliable order commitment dates by analyzing real-time supply and demand data. This process evaluates factors such as current inventory levels, production schedules, supplier lead times, and transportation constraints to determine feasible delivery dates for customer orders. It ensures businesses can promise delivery dates that align with actual capabilities, enhancing customer satisfaction and operational reliability. Option A is incorrect because Order Promising is not limited to direct-to-customer deliveries—it applies to all order types, including B2B and internal transfers. Option B is also wrong as it overpromises "same-day shipping," which is not guaranteed by Oracle Fusion SCM; instead, the system focuses on realistic commitments based on constraints. For example, if a customer orders a product with limited stock and a two-day production lead time, Order Promising calculates the earliest possible delivery date rather than assuming immediate shipment. This precision reduces overpromising and underdelivering, a common issue in manual systems.

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.

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.

Replenishment Planning (C)in Oracle Fusion Cloud SCM ensures optimal inventory levels by predicting demand and adjusting supply plans proactively. Using forecasts—e.g., expecting 300 units next month—it triggers replenishments to maintain stock (e.g., ordering 250 units when levels hit 50), avoiding overstock or shortages. Option A (Cost Accounting) tracks costs, not inventory levels. Option B (Supplier Qualification) evaluates suppliers, not stock planning. Option D (Manufacturing Execution) manages production, not replenishment. This feature balances cost and availability, reducing waste (e.g., $5,000 in excess stock) and ensuring service continuity.

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.

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.

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.

Global Order Promising (A)provides real-time order promising by analyzing supply (inventory, production) and demand (orders, forecasts) constraints across the enterprise. For instance, if a customer requests 100 units and only 80 are available with a 2-day production lead time, GOP promises delivery in 2 days. Option B (Supplier Portal) supports collaboration, not promising. Option C (Manufacturing Execution) tracks production, not order commitments. Option D (Cost Accounting) handles financials. GOP enhances customer trust and planning accuracy by delivering feasible, data-driven promises.