1z0-1163-1 Exam Dumps - Oracle Fusion Cloud Applications SCM Foundations Associate - Rel 1

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.

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.

EmbeddingOracle Method Based Practices (OMBPs) in Starter Configurations (C)provides a prebuilt, standard configuration that streamlines Oracle Fusion Applications implementations using a solution-led approach. These configurations incorporate best practices—e.g., predefined workflows for demand planning—reducing setup time and ensuring consistency. For instance, a company can deploy SCM modules with optimized settings out of the box, customizing only where necessary. Option A is incorrect—third-party access isn’t a focus; security restricts modifications. Option B is partially true but misses the point—OMBPs standardize first, then allow customization, not the reverse. This approach accelerates deployment, lowers costs, and leverages Oracle’s expertise for reliable outcomes.

The primary advantage ofReplenishment Planning (A)is ensuring optimal inventory levels by predicting demand and adjusting supply plans accordingly. It uses demand signals—e.g., a forecast of 500 units for next month—to trigger timely replenishments, avoiding overstock (costly) or stockouts (lost sales). Option B is incorrect—static levels defy dynamic demand; Replenishment Planning adapts to fluctuations. Option C is false—demand forecasting is its foundation. Option Dis unrelated—payment cycles are a financial process. For instance, if demand spikes unexpectedly, it recalibrates orders, saving costs and maintaining service levels, a key operational benefit.

Cost Rollup (C)in Oracle Fusion Cloud SCM calculates the total cost of a product by aggregating material, labor, and overhead expenses across production stages. For instance, a widget might cost $10 total—$5 materials, $3 labor, $2 overhead—rolled up from raw inputs to finished goods. Option A is false—Cost Rollup enhances, not eliminates, cost accounting by providing detailed data. Option B is incorrect—it includes all cost components, not just labor. Option D is wrong—costs fluctuate with market conditions; Rollup reflects current values. This function ensures accurate pricing, profitability analysis, and cost control, critical for financial decision-making and competitive strategy.