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Exam Name: Oracle EBS R12.1 Inventory Essentials
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NO.1 Which three statements are true about the item master? (Choose three.)
A. Itispossible to copy items across item master organizations.
B. The item master organization is the centralized repository for ail items in different organizations.
C. It is possible to associate items in one item master organization with another item master organization.
D. When an attribute control is set at the item master level, updates are not allowed at the item or
organization level.
E. There is no functional or technical difference between the item master organization and other
organizations while transacting on an item.
F. When an attribute control is set at the item master level, updates can still be made at the item or
organization level but these updates would not propagate back up to the item master level.
Answer: B,D,E
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NO.2 What two conditions prevent you from reserving the Inventory? (Choose two.)
A. The inventory module is installed as Shared.
B. The items have a nonreservable material status.
C. TheInventory is in a Standard Cost inventory organization.
D. TheInventory is in an Average Cost inventory organization.
E. The reservation will cause the on-hand quantity to be negative.
Answer: B,E
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NO.3 You are moving items from locator A to locator B within the same Inventory organization. Which two
types of inventory transactions are required? (Choose two.)
A. Move Order
B. Locator transfer
C. Subinventory transfer
D. WIP component Issue
E. Miscellaneous Receipt
F. WIP assembly completion
G. Interorganization transfer direct
Answer: A,C
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NO.4 What are the prerequisites for performing an accurate ABC Compile for Inventory Items using the
Current on-hand value as the compile criterion?
A. Itemscosted only
B. Itemswith on-hand quantity only
C. Eitheritems with on-hand quantity or items costed
D. Both items with on-hand quantity and items costed
Answer: D
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NO.5 XYZ Is a Chemicalmanufacturing company. On a daily basis, it produces 100 kilos of Item A from a
single production batch.
100 kilos of itemAmanufactured from a single batch has a single expiration date. However, the purity of
item A varies as follows:
Category 1: 95%
Category 2: 85%
Category 3: 50%
From an implementation perspective, which setup or process would meet this requirement?
A. Enable lot control. Map three categories asco products.
B. Enable lot control for Item A. Create three lots to represent the categories.
C. Enable lot control for item A. Create three child lots and link them with the parent lot.
D. Enable lot and grade control for item A. Have three categories mapped with grades.
E. Enable lot and serial control for item A. Create one lot and three categories that are mapped with serial
numbers.
Answer: D
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NO.6 Which three statements are true about ABC Analysis and cycle count Classes? (Choose three.)
A. The hit/miss% for the Class overrides the hit/miss%ofthe cycle count header.
B. The hit/miss% for the cycle count header overrides the hit/miss%ofthe Class.
C. An ABC Analysis can be compiled for a sub inventory that is defined as a non-quantity-tracked sub
inventory.
D. An ABC Analysis can be compiled for nonasset (expensesubinventories for which quantities
aretracked).
E. In ABC Analysis, a quantity variance must always be submitted for approval, regardlessof thetolerance
levels
F. Positive and negative tolerances can be entered for each class, which will override the
tolerance at the cycle count header level
Answer: A,D,F
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NO.7 Your customer is planning to dose the accounting period in Inventory. Before closing the period, the
customer would like toviewthe total number of pendingtransactionsin one form.
Whichform would provide this Information?
A. Pending Status
B. View MaterialTransactions
C. FindPendingTransactions
D. Transaction Open Interface
E. InventoryAccountingPeriod
Answer: E
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NO.8 Oracle Inventory interacts with other Oracle applications by sharing information.
Which two pieces of information does Oracle Inventory receive from the Order Management application?
(Choose two.)
A. UOM information IS
B. shipping information
C. on-hand information
D. ATP supply information
E. reservations information
Answer: B,E
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