Oracle SCM Interview Questions & Answers

Oracle SCM Interview Questions

Ready to face interview for Oracle SCM? Do not worry, we are here to help you with job interview preparation. If you are preparing oracle scm interview and not sure which questions are likely asked in interview, we suggest you to go through Wisdomjobs interview questions and answers page to crack your job interview. oracle scm is the supply chain management which relates to the goods and products in shipment. The shipment, raw materials, inventory are tracked from starting to end. Using Cloud, the risk is reduced with less cost as everything is digitalized. Strong Management skills are needed as there is huge competition. Below is the list of frequently asked oracle scm job interview questions and answers which gets you ready to face the interviews:

Oracle SCM Interview Questions And Answers

Oracle SCM Interview Questions
    1. Question 1. What Are Different Planning Methods In Inventory?

      Answer :

      There are 5 different planning methods in oracle Inventory:

      1. Subinv Replenishment Planning
      2. Min Max Planning
      3. Re-order point planning
      4. Kanban Planning
      5. Periodic Automatic Replenishment

    2. Question 2. What Are The Setups For Different Planning Method (min-max?)

      Answer :

      Setup the item in master org and assign the item to the org for which Min-Max planning is used

      • Attributes, Inv Planning method: Min-Max
      • Min-Max Qty should have been defined
      • Safety Stock method should be non MRP Planned
      • Determine what should be the status of the Requisitions created for the planning
      • Do this with profile option INV: Minmax Reorder Approval
      • IF Use ASL has been enabled, then Requisition will populate the supplier data from the ASL setup which is assigned to the item
      • Sourcing rules can be defined for this
      • Then need to assign sourcing rule to the item
      • In Inventory responsibility, under Planning run the Min Max planning report with required parameter

    3. Question 3. What Is The Concurrent Program For The Planning?

      Answer :

      Min Max planning report under planning menu in Inventory responsibility

    4. Question 4. What Are The Setups For Expense Item?

      Answer :

      • Should not be Inventory Item
      • No Stackable
      • No Transactable
      • No Costing, Inv Asset

    5. Question 5. How Many Key Flex Fields Are There In Inventory?

      Answer :

      Seven KFF are there in Inventory: 

      • Account Alias
      • Item
      • Item Category
      • Item Catalogues
      • Stock Locators
      • Sales Order
      • Service Items

    6. Question 6. What Is The Use Of Sales Order Kff?

      Answer :

      • This is used during material transaction when source is Sales Order.
      • Segments are Sales order Number. Sales Order Type. Sales Order Source.

    7. Question 7. How We Can Have The Item Key Flex Field With 2 Segments, Is It Possible, If Yes Then How, If No Then Why?

      Answer :

      • This can be modified using Flexfield>Key> Segments.
      • Query the System Items, then you can modify the existing structure, or you can add a new one.

    8. Question 8. What All Setups You Have Done In Inventory Organization Implementation?

      Answer :

      • Location
      • Calendar
      • Organization
      • Parameter
      • Cost Group
      • Sub inventory
      • Stock Locator
      • Receiving Options
      • Shipping Networks
      • Intercompany Transaction flows
      • Cost Sub elements

    9. Question 9. What Is The Difference Between Purchased And Purchasable Flag For An Item?

      Answer :

      • Purchasable is a status attribute flag, so based on this flag, certain transactions can be controlled for an item.
      • Purchased flag decides whether to purchase and receive this item.
      • Purchasable flag decides whether to order this item in a purchase order.
      • If purchasable is enabled, item can be ordered in a purchase order, if not, new purchase orders can’t be created and approved for the items.
      • If purchased is enabled, item can be received if already present in an approved purchase order.

    10. Question 10. What Is The Valuation Accounts Used In Inventory?

      Answer :

      • Material: An asset account that tracks material cost. For average costing, this account holds your inventory and in transit values. Once you perform transactions, you cannot change this account.
      • Material Overhead: An asset account that tracks material overhead cost.
      • Resource:  An asset account that tracks resource cost.
      • Overhead: An asset account that tracks resource and outside processing overheads.
      • Outside processing: An asset account that tracks outside processing cost.
      • Expense:  The expense account used when tracking a non-asset item.

      Other Accounts:

      • Sales: The profit and loss (income statement) account that tracks the default revenue account.
      • Cost of Goods Sold: The profit and loss (income statement) account that tracks the default cost of goods sold account.
      • Purchase Price Variance: The variance account used to record differences between purchase order price and standard cost. This account is not used with the average cost method.
      • Inventory A/P Accrual: The liability account that represents all inventory purchase order receipts not matched in Accounts Payable, such as the uninvoiced receipts account.
      • Invoice Price Variance: The variance account used to record differences between purchase order price and invoice price. This account is used by Accounts Payable to record invoice price variance.
      • Encumbrance: An expense account used to recognize the reservation of funds when a purchase order is approved.
      • Average Cost Variance: Under average costing with negative quantity balances, this account represents the inventory valuation error caused by issuing your inventory before your receipts.

    11. Question 11. What Is Abc Analysis And Why It Is Being Used?

      Answer :

      • BC Analysis is an Inventory categorization method to categorize items into 3 different classes A being the most valuable and C being the least valuable ones.
      • Using this Analysis, it will be easy to monitor and keep on track of the valuable items like frequently doing cycle counts on A class items, etc.

    12. Question 12. What Are The Processes Of Cycle Count?

      Answer :

      • Create a cycle count header with required data
      • Assign the items to be counted
      • Then run the required cycle count report
      • Using the report do the cycle counts
      • Then go and Approve the cycle count

    13. Question 13. What Is The Different In Mo Issue And Mo Transfer?

      Answer :

      • MO Issue will move out the stock from inventory against an account.
      • MO transfer will move the stock from one sub inventory to other.

    14. Question 14. What Is The Picking Rule In Inventory?

      Answer :

      • Picking Rule is used to determine the list of items for sales order/ shipping based on the revision, Lot, Sub inventory and Locator.
      • Assign the required Picking Rule to the item in Order Management tab.

    15. Question 15. What Are The Criteria In Cycle Count?

      Answer :

      • Depending on the requirement, we can trigger cycle count.
      • We can define regular cycle count of high values items.
      • If back ordered or pick denied, we can trigger cycle count for those items.

    16. Question 16. What Are The Diff In Lot And Serial?

      Answer :

      • Lot control is to control a whole batch of items. for example in drug industry we have batch number which can be controlled using lot where we can track the complete batch using specific data.
      • Serial control is to monitor and track every single qty of an item like electronic devices where we track by serial number.

    17. Question 17. What Is Move Order In Om?

      Answer :

      Move orders generated as part of Pick Wave are the ones from Sales order.

    18. Question 18. How A Mo Is Diff From Subinv Transfer?

      Answer :

      MO generally is the request of movement of items in one organization. It may be of from 3 sources, MO requisition, Replenish MO, Pick Wave MO. MO can be MO Issue which will issue the item from the location and MO transfer which ll transfer the item to another location.

    19. Question 19. What Is Net Table In Sub Inventory Setup?

      Answer :

      This wills determine whether to consider the onhand of the sub inventory as available for planning tasks.

    20. Question 20. What Are The Status Attributes In Item And How Many Of Them?

      Answer :

      We can define different status for an item combination these attributes as per the business need.

      Following are the attributes:

      • BOM Enabled
      • Build in WIP
      • Customer order enabled
      • Internal Order enabled
      • Inviolable
      • Purchasable
      • Stackable
      • Transactable

    21. Question 21. What Is The Use Of Status Attribute?

      Answer :

      We can define different status for an item combination these attributes as per the business need.

    22. Question 22. Why Master Org Is Required?

      Answer :

      So that we can have an item maintained at master level with common attributes and then we can use the same item across multiple organizations instead of defining it again and again.

    23. Question 23. Inventory Master Org Is Mandatory?

      Answer :

      Yes. If you will not create any specific master org, then system will consider the same inv org as its master org.

    24. Question 24. What Are The Lot Control Setups?

      Answer :

      Lot control can be setup at item attributes at organization level.

      Either No Control or Full Control.

    25. Question 25. How Lot Number Generates?

      Answer :

      You can generate new Lot numbers during transactions.

    26. Question 26. What Is Serial Controlled And What Are The Setups?

      Answer :

      Serial control can be setup at item attributes at organization level.

    27. Question 27. How Serial Numbers Are Generated?

      Answer :

      Serial control can be setup at item attributes at organization level.

      No Control, At Receipt, At Sales Order issue, Predefined.

    28. Question 28. What Is The Predefined Locator In Sub Inventory And How It Works In Business?

      Answer :

      We can setup locator control in 4 diff ways for each sub inventory:

      None:  There will not be any locator information required during any transaction.

      Prespecified: System will ask you to select locator combinations which already been defined in the sub inventory during the transaction.

      Dynamic Entry: Either you can select any locator during transaction or you can create a new combination.

      Item Level: This will take the locator which has been defined at item attribute level.

    29. Question 29. What Are The Transaction Managers?

      Answer :

      Transaction manager is the interface managers which carry out all transaction once submitted by the users.

    30. Question 30. Can We Change The Item Name After It Created?

      Answer :

      Yes we can change the name in master level.

    31. Question 31. How Wms Is Helpful Compared To Inventory?

      Answer :

      Warehouse Management (WMS) enables companies to maximize their utilization of labor, space and equipment investments by coordinating and optimizing resource usage and material flows. Specifically designed to support the needs of distribution, manufacturing, asset-intensive, and service businesses, Oracle WMS provides a single-platform across your entire global supply chain.

    32. Question 32. What Is The Use Of Wms Rules Workbench?

      Answer :

      The Rules workbench enables you to assign strategies, rules and cost group values directly to any number of objects in an assignment matrix.

    33. Question 33. Why Strategy Used?

      Answer :

      After you define your rules, you must set up a strategy and then associate the applicable rules. After you assign rules to a strategy, the rules engine can execute the strategies on any objects to which the strategy applies. The rules engine executes each subsequent rule in your strategy until an allocation is completely filled.

    34. Question 34. How Many Types Of Bar Codes Are There?

      Answer :

      Mainly 2 types Linear (1 dimensional) and Matrix (2D).

    35. Question 35. What Is An Item?

      Answer :

      • An item is a part or services where you can Purchase, Sell, Plan, Manufacture, Stock, Distribute and Prototype.
      • Items can also be containers for items as well as components you build into other items.

    36. Question 36. Explain Item Master Organization?

      Answer :

      An item master organization is a logical entity where you define the item. After you define an item in the item master, you can assign it to any number of other organizations.

    37. Question 37. Define Inventory Organization?

      Answer :

      It is a facility which will enable you to store and transact the items. It can be a manufacturing unit, ware house, distribution center etc.

    38. Question 38. What Is A Sub Inventory?

      Answer :

      • Subinventiries are unique physical or logical separations of material inventory. These can be raw material, finished goods or defective material sub inventory. You must define at least one sub inventory. Sub inventories are of two types: storage and receiving.
      • Storage sub inventories are intermediate or final put away locations for material. Material that resides in a storage sub inventory appears in on hand quantity, and is tracked by the system. The system can book orders against, and use manufacturing processes on material that resides in a storage sub inventory. You must define at least one storage sub inventory for your implementation.
      • Receiving type sub inventory is only used for receiving items. Items in this sub inventories cannot be on-hand or reserved.

    39. Question 39. In Which Table Does The Sub Inventory Related Information For An Item Is Stored?

      Answer :



    40. Question 40. What Is A Stock Locator?

      Answer :

      Locators are structures within sub inventories. Locators are the third level in the enterprise structuring scheme of Oracle Inventory. Locators may represent rows, racks, or bins in warehouses. You can transact items into and out of locators. You can restrict the life of locators, establish capacity of a specific locator in weight or units, as well as specify dimensions which define a locator’s capacity by volume.

    41. Question 41. What Are The Key Flex Fields In Oracle Inventory?

      Answer :

      Oracle Inventory provides the following flex fields:

      • System Items
      • Item Catalogs
      • Item Categories
      • Stock Locators
      • Account Alias 
      • Sales Order

    42. Question 42. What Are The Basic Steps Involved In Defining An Item?

      Answer :

      • Create an item in the item master form.
      • Copy the template from the tools menu to assign specific attributes to the item and save it.
      • Assign the item to a category from tools menu and save your work.
      • Select organization assignment from tools menu and assign the item to different inventory organizations by ticking the checkbox next to the inventory organizations.

    43. Question 43. What Are Item Attributes?

      Answer :

      Item attributes are the collection of information about an item. These are used to store specific characteristics of an item, such as item status, unit of measure, revision control, etc. these can be controlled at either the master or the organization level. These attributes are stored in a table named MTL_ITEM_ATTRIBUTES.

    44. Question 44. What Is The Use Of Item Template?

      Answer :

      An Item template is a set of attributes that enable the user to quickly create an Item. You can use the existing templates are you can create your custom template.

    45. Question 45. What Is An Item Category And Category Set?

      Answer :

      A category is a logical classification of items that have similar characteristics.

      A category set is a distinct grouping scheme and consists of multiple categories. An item can belong to any number of category sets. We can assign item to one category within each category set. The categories can be retrieved from the table ‘MTL_CATEGORIES_B‘ and item category set from ‘MTL_CATEGORY_SETS_B’.

    46. Question 46. Explain Unit Of Measure (uom) And Uom Class?

      Answer :

      The unit of measure (UOM) helps us count the number of items involved in a transaction or the number of items that are stored in a sub inventory or a locator.

      UOM classes let you group different UMO’s into one category. Eg, quantity could be UOM classes under which each, dozen, lot etc are separate UOM’s.

    47. Question 47. Explain Shipping Method?

      Answer :

      Shipping methods are the way you ship material. When you create a shipping method, you must enable it before you can use it in a shipping network. If you disable a shipping method, it cannot be used in a shipping network.

    48. Question 48. Describe Inter Organization Shipping Networks?

      Answer :

      An inter-organization shipping network describes the relationships and accounting information between a shipping organization and a destination organization. You must define a shipping network between two organizations before you can transfer material between organizations. When you set up a shipping network you must select a transfer type: Intransit or Direct.

      In transit: Oracle Inventory moves material to an intermediary state before it reaches the destination organization. After the material arrives at the destination organization, you will need a receipt transaction to retrieve it. If in transit is selected, you can define.

      Shipping Methods, GL Accounts to use in transit, Material ownership during transfer, Planning lead times and Transfer Charges.

      Direct: Oracle Inventory moves the material directly to the destination organization. However, for both transfer types, you can determine default receipt routing and whether internal orders are required to transfer material.

    49. Question 49. In Which Tables Are The Transactional Details Are Stored?

      Answer :





    50. Question 50. What Is Revision Control In Oracle Inventory?

      Answer :

      A revision is a particular version of an item, bill of material, or routing. Revision control is normally enabled for identifying a modified item. Item can be placed under revision control by checking the box `Revision control` in Inventory tab while defining new item or for existing item. Base table for Item Revision is MTL_ITEM_REVISIONS.

    51. Question 51. What Is Picking Order Of Sub Inventory Or Locator? Where Will You Define The Order?

      Answer :

      The value indicates the priority with which we pick items from sub inventory or Locator, relative to another sub inventory or locator, where a given item resides. A picking order of 1 means that order entry functions pick items from the sub inventory or locator before others with a higher number (such as 2,3 and so on).

      The sub inventory order is defined in the sub inventory definition and the locator order is defined in the locator definition. The default order for both the sub inventory and the locator are defined in the organization.

    52. Question 52. What Are The Different Inventory Transactions?

      Answer :

      A transaction is an item movement within, into or out of inventory. A transaction changes the quantity and location of an item.

      The following are the different inventory transactions:

      • Receive an item into an organization from GL account number.
      • Issue an item from an organization into a GL account number.
      • Transfer items from one sub inventory to other in the same organization.
      • Transfer of items between various inventory organizations.
      • Reservation of items.

    53. Question 53. Describe Various Inventory Transaction Types?

      Answer :

      Miscellaneous transaction: This transaction is used to do adjustments in stock due to damage, obsolescence, issuing items for R & D or issuing track able expense items.

      Sub inventory transfer: This transaction is used to transfer goods from one sub inventory to another within the same inventory organization.

      InterORG transfer: This transaction is used to transfer goods from one inventory organization to another.

      Receiving transaction: This transaction is used to move goods from receiving dock to specified sub inventory and locator.

      Sales issue: This transaction is used to move goods from pick sub inventory to staged sub inventory.

      WIP issue: This transaction is used to issue materials against production orders.

    54. Question 54. What Is The Difference Between A Sub Inventory Transfer And A Move Order?

      Answer :

      Both these transactions are used for the movement of items from one sub inventory to the other. The difference is that move order generates a pick slip and a sub inventory transfer doesn’t.

      Move order requires ‘approval’. Also, move orders create allocations. So you can place hold on the material with the intention of picking it up a little later. In sub inventory transfer, there is no reservation / allocation.

    55. Question 55. What Are The Components Used In Customizing A Transaction?

      Answer :

      The following are the three components used in a transaction

      • Transaction Source Type
      • Transaction Action
      • Transaction Type

      A Transaction Source Type and a Transaction Action come together to form a Transaction Type.

    56. Question 56. What Is A Transaction Source Type?

      Answer :

      A Transaction Source Type is defined as an entity against which Oracle Inventory charges a transaction.

      The following transaction source types come seeded with Oracle Inventory:

      • Purchase Order
      • Account Alias
      • Move Order
      • Internal Order
      • Standard Cost Update
      • Internal Requisition
      • Sales Order
      • Cycle Count
      • Periodic Cost Update
      • Physical Inventory
      • Account
      • RMA (Return Material Authorization)
      • Inventory
      • Job or Schedule

    57. Question 57. What Is A Transaction Type?

      Answer :

      A transaction type is a combination of a transaction source type and a transaction action. It is used to classify a particular transaction for reporting and querying purposes.

      Ex: Sales order issue (txn type) + issue from stores (txn action) = sales order (txn source type).

      Move order transfer (txn type) + sub inventory transfer (txn action) = move order (txn source type).

    58. Question 58. Name Any Four Purposes Where Miscellaneous Transaction Can Be Used?

      Answer :

      Cycle count adjustment, Physical inventory adjustment, adjusting inventory quantity within an inventory organization and decrementing on-hand balances from a subinvemtory.

    59. Question 59. Explain Inventory Control?

      Answer :

      Inventory Control is the process by which inventory is measured and regulated according to predetermined norms such as economic lot size for order or production, safety stock, minimum level, maximum level, order level etc.

    60. Question 60. What Are The Objectives Of Inventory Control?

      Answer :

      • To meet unforeseen future demand due to variation in forecast figures and actual figures.
      • To average out demand fluctuations due to seasonal or cyclic variations.
      • To meet the customer requirement timely, effectively, efficiently, smoothly and satisfactorily.
      • To smoothen the production process.
      • To facilitate intermittent production of several products on the same facility.
      • To gain economy of production or purchase in lots.
      • To reduce loss due to changes in prices of inventory items.
      • To meet the time lag for transportation of goods.
      • To meet the technological constraints of production/process.

    61. Question 61. What Are The Factors That Affect Inventory Control?

      Answer :

      • Type of product
      • Type of manufacture
      • Volume of production

    62. Question 62. Define Abc Analysis?

      Answer :

      ABC analysis determines the relative value of a group of inventory items based on a user specified valuation criterion.

      This technique divides inventory into three categories A, B & C based on their annual consumption value.

      It is also known as Selective Inventory Control Method (SIM).

    63. Question 63. What Is Consignment Inventory?

      Answer :

      Consignment Inventory is inventory that is in the possession of the customer, but is still owned by the supplier. In other words, the supplier places some of his inventory in his customer’s possession (in their store or warehouse) and allows them to sell or consume directly from his stock. The customer purchases the inventory only after he has resold or consumed it. The key benefit to the customer should be obvious; he does not have to tie up his capital in inventory. This does not mean that there are no inventory carrying costs for the customer; he does still incur costs related to storing and managing the inventory.

    64. Question 64. What Are The Different Planning Methods Available In Oracle?

      Answer :

      • Re-order point planning
      • Min-Max planning
      • Kanban cards
      • Sub inventory replenishment planning

    65. Question 65. When Should The Material Be Ordered?

      Answer :

      When on-hand quantity + supply – demand is less than safety stock (safety stock is nothing but minimum inventory level)

      [On-hand quantity] + [supply] – [demand] < [min inventory level]

    66. Question 66. Explain Re-order Point Planning?

      Answer :

      Reorder point planning uses demand forecasts to decide when to order a new quantity to replenish inventory. Reorder point planning suggests a new order for an item when the available quantity (on-hand quantity plus planned receipts) drops below the item’s safety stock level plus forecast demand for the item during its replenishment lead-time. The suggested order quantity is an economic order quantity that minimizes the total cost of ordering and carrying inventory. Oracle Inventory can automatically generate requisitions to inform your purchasing department that a replenishment order is required to supply your organization.

      If the forecast is correct and the order arrives on time, the inventory level should be right at the safety stock level at the time of receipt. In cases where the desired safety stock level changes during the order lead time, Oracle Inventory uses the largest safety stock quantity during the lead-time.

      When an order is triggered, the EOQ is the size of the triggered order.

      EOQ = square root of: [(2 X annual demand X order cost) / (carrying cost percent X Unit cost)]

      Oracle Inventory calculates annual demand as the current demand rate annualized by multiplying the current period demand forecast by the number of periods per year (12 or 13).

      Reorder point planning can be performed at the organization level only.

    67. Question 67. Explain Min-max Planning Technique?

      Answer :

      Min-Max planning is a tool for planning inventory that looks at user-defined minimum and maximum inventory levels. It does not consider lead times.

      We can perform this technique at org level or sub inventory level.

    68. Question 68. Define Cycle Counting And Explain Its Use In Oracle Inventory?

      Answer :

      Cycle Counting is a process of periodic counting of individual item / all the items throughout the course of the year to ensure the accuracy of inventory quantities and values.

      We can do the cycle counting at Organization / Sub Inventory Level.

      Cycle count is used to:

      To reconcile system on-hand balances with actual counts in inventory.

      Maintain control over the items that have higher value.

    69. Question 69. When Do You Perform Physical Inventory And Explain The Steps Involved In It?

      Answer :

      Physical inventory can be performed, whenever there is a need to verify the accuracy of system on-hand quantities. This can be done for entire organization or can be confined to a specific sub inventory.

      Steps to perform physical inventory:

      • Define physical inventory
      • Take a snapshot of system on-hand quantities
      • Generate physical inventory tags
      • Enter counts
      • Do physical inventory adjustments by approving or rejecting
      • Post adjustments
      • Purge physical inventory information

    70. Question 70. When Can You See Such Scenario, Item Available To Qty Is 0 But Available To Transact More Than 0?

      Answer :

      • If item is not resolvable
      • If Sub inventory Allow reservation is not allowed
      • If Item is lot controlled and lot is expired

    71. Question 71. From Where I Can See The List Of Time Zones In Oracle.

      Answer :

      The list of time zones and their other details can be found from below 2 tables.

      fnd_timezones_b, fnd_timezones_tl.

    72. Question 72. Can One Asset Sub Inventory Be Made Non Asset Sub Inventory Once Transactions Created On That?

      Answer :

      Yes Asset Sub inventory flag can be unchecked for that sub inventory provided.

      • There is no onhand present in that sub inventory. If present you need to issue out and change the flag and receive those back.
      • There is no accounting details’ pending in inventory like transaction happened but costing is not yet done.

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