1Z0-1163-1 practice question 12 of 15

What role does the Inventory Management function play in Oracle Fusion Cloud SCM?

Full set: 51 questions

Answer options

A: It focuses on reducing supplier costs instead of stock levels.

B: It manages only supplier shipments, not warehouse stock.

C: It ensures optimal inventory levels by tracking stock movement and availability. Correct answer

Correct Answer:

C. It ensures optimal inventory levels by tracking stock movement and availability.

Explanation

Oracle Fusion Inventory Management tracks on-hand balances, receipts, issues, transfers, reservations, and reorder points, providing real-time visibility that supports replenishment policies and maintains optimal inventory levels throughout the supply chain.

Why Incorrect

A. Objective is balanced stock availability and carrying cost, not supplier cost reduction.
B. It maintains all warehouse on-hand quantities, not just inbound shipments.

References

1. Oracle Fusion Cloud SCM, Implementing Inventory Management 24A, “Inventory Management Overview,” Chap 1, p. 13-15.

2. Oracle White Paper “Inventory Optimization with Oracle SCM Cloud,” Oracle Corp., 2022, p. 3-4.

3. University of Michigan ISyE 622 Course Note “Inventory Control Systems,” 2020, p. 9.

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