1Z0-520 practice question 25 of 30
Which three statements are true regarding Inventory replenishment methods? (Choose three.)
Full set: 245 questionsReorder Point (ROP) planning calculates replenishment requirements using the Economic Order Quantity (EOQ) model, which incorporates order costs, carrying costs, annual demand, and replenishment lead times. Conversely, Min-Max planning relies on fixed user-defined minimum and maximum quantity thresholds rather than cost-based EOQ equations. Min-Max planning can be executed at both the organization level and individual subinventory levels. In the item master setup, Inventory Planning Method is a mutually exclusive attribute, preventing both Min-Max and Reorder Point planning from being defined simultaneously for the same item.
A: Min-Max planning uses user-specified minimum and maximum inventory thresholds and does not calculate reorder quantities using order cost. B: Min-Max planning does not incorporate inventory carrying cost into its replenishment calculations. F: An item can only be assigned a single Inventory Planning Method attribute in Oracle Inventory, making concurrent specification impossible.
- Oracle Inventory User's Guide, Release 12.2, Chapter 9: Inventory Planning and Replenishment, "Min-Max Planning".
- Oracle Inventory User's Guide, Release 12.2, Chapter 9: Inventory Planning and Replenishment, "Reorder Point Planning".
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