1z0-1073-24 Oracle Inventory Cloud 2024 Implementation Professional exact Exam Questions

Oracle Inventory Cloud 2024 Implementation Professional

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Question # 1

Which three statements are true regarding material status control?

You can change the material status at the time the items are received. (*)

If you do not enable material status control for a transaction type, the transaction type is always disallowed.

The Material Status Enforced profile option must be set to Yes to enable material status control. (*)

The default lot status can be assigned to an item in item master. (*)

The transaction type for which you enable status control defaults as disallowed transaction type for new material statuses that you create.

Question # 2

Back to Back fulfillment

Overview of Back-to-Back Fulfillment

The back-to-back fulfillment process is one in which specific sales order demand triggers supply creation, and a link is established between the sales order and the supply.

Note: Back-to-back flow is currently supported only for discrete manufacturing.

The following figure provides a high-level flow diagram showing the back-to-back supply creation and fulfillment process flow.

Back-to-back fulfillment is where supply is procured and then received at a warehouse only after an order is placed.

The supply is reserved against a sales order until shipping.

This process provides support to create and link supply after a sales order is entered and scheduled, allowing you to reduce your inventory while maintaining the ability to respond to customer demands.

You create supply for a back-to-back order using one or more of the following back-to-back flows:

• Buy: Procurement from an external supplier.

• Make: Production in an internal manufacturing facility (includes in-house manufacturing and contract manufacturing).

• Transfer: Transfer from another warehouse.

• On hand: Reservation of on-hand supply in the fulfillment organization.

Note: For information about back-to-back flows for contract manufacturing, see the Implementing Contract Manufacturing chapter in this guide.

After the supply is received into the fulfillment warehouse, the back-to-back order is ready for shipment to the customer.

Answer:

See the Explanation for the complete solution.

Explanation:

Back-to-Back Fulfillment in Oracle Inventory Cloud

Back-to-back fulfillment in Oracle Inventory Cloud is a supply chain process where supply is created only after a sales order is placed. This process links the demand (customer sales order) directly to the supply (procurement, manufacturing, transfer, or existing stock), ensuring efficient inventory management while meeting customer demands. Below is a detailed step-by-step explanation of the back-to-back fulfillment process.

1. Overview of Back-to-Back Fulfillment Process

The back-to-back (B2B) fulfillment process ensures that supply is created only when a customer order is received.

Supply is specifically reserved for the sales order until shipping.

This process helps reduce excess inventory while maintaining responsiveness to customer needs.

It supports four fulfillment strategies: Buy, Make, Transfer, and On Hand Reservation .

Back-to-back fulfillment is mainly used in discrete manufacturing environments.

2. Step-by-Step Back-to-Back Fulfillment Process in Oracle Inventory Cloud

The back-to-back fulfillment process consists of the following key steps:

Step 1: Process Sales Order

The sales order is created in Oracle Order Management .

The order is validated for correctness (items, quantities, prices, etc.).

The order is scheduled, and the system checks if on-hand inventory is available.

If no inventory is available, Oracle Supply Chain Orchestration initiates a back-to-back fulfillment request.

Step 2: Determine Supply Sources

Oracle Supply Chain Orchestration (SCO) determines the best supply source based on predefined rules and sourcing strategies.

The system evaluates the following supply options:

Buy : Procurement from an external supplier.

Make : Internal manufacturing or contract manufacturing.

Transfer : Movement of inventory from another warehouse or distribution center.

On Hand : Direct reservation of existing inventory.

Step 3: Create and Manage the Supply Order

A supply order is generated in Oracle Supply Chain Orchestration .

The order is assigned to the appropriate fulfillment method:

Buy Order : A purchase requisition is created in Oracle Procurement Cloud , and the supplier provides the required goods.

Make Order : A work order is created in Oracle Manufacturing Cloud , and production begins.

Transfer Order : A transfer request is initiated in Oracle Inventory Management , moving stock from another warehouse.

On-Hand Reservation : If stock is available, it is reserved against the sales order.

Oracle monitors the progress of the supply order until completion.

Step 4: Receive and Consolidate Supply in Warehouse

Once supply is procured, manufactured, or transferred, it is received in the fulfillment warehouse.

If it is a purchased item, a receipt is created in Oracle Receiving .

If it is a manufactured item, the work order is completed, and inventory is updated.

The system ensures that the received inventory is linked to the original sales order.

Step 5: Ship to Customer

The sales order is released for fulfillment.

A Pick Release process is initiated in Oracle Inventory Cloud to allocate stock.

The order is picked, packed, and shipped using Oracle Shipping Execution .

A shipping confirmation is generated, and an invoice is created in Oracle Receivables .

The sales order is marked as complete, and the supply order is closed.

3. Detailed Explanation of Back-to-Back Fulfillment Flows

1. Buy Flow (Procurement)

If the supply is sourced externally, the system generates a purchase order in Oracle Procurement Cloud.

The supplier delivers the goods, which are received in Oracle Receiving.

The inventory is updated, and the order is prepared for shipment.

The sales order is fulfilled once the goods arrive.

2. Make Flow (Manufacturing)

If the item is manufactured internally, a work order is created in Oracle Manufacturing Cloud.

Production is executed, and the finished product is stored in inventory.

The system reserves the item against the sales order.

The order is fulfilled when the product is available.

3. Transfer Flow (Warehouse Transfer)

If the item is available in another warehouse, a transfer order is generated in Oracle Inventory Cloud.

The inventory is moved to the fulfillment warehouse.

Once received, the inventory is reserved and prepared for shipment.

The sales order is completed upon shipment.

4. On Hand Flow (Inventory Reservation)

If the item is available in stock, the system directly reserves it.

The order moves to the shipping phase without additional procurement or manufacturing steps.

The pick, pack, and ship process is executed, and the order is fulfilled.

4. Key Benefits of Back-to-Back Fulfillment in Oracle Inventory Cloud

✔ Reduced Inventory Holding Costs – Stock is only procured, manufactured, or transferred when needed. ✔ Improved Order Fulfillment Efficiency – Orders are linked directly to supply, reducing delays. ✔ Better Customer Satisfaction – Customers receive products faster with reduced stockouts. ✔ Automated Supply Chain Coordination – Oracle Cloud applications ensure seamless integration between order management, procurement, manufacturing, and inventory. ✔ Flexibility in Sourcing – Users can choose between procurement, manufacturing, transfer, or existing stock to fulfill demand efficiently.

5. Oracle Cloud Modules Involved in Back-to-Back Fulfillment

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6. Example Use Case: Back-to-Back Fulfillment in Action

Scenario: A customer places an order for 100 units of Item XYZ , but there is no stock available in the warehouse.

Solution:

The system checks stock availability and identifies that back-to-back fulfillment is required.

The sourcing rules determine that procurement from an external supplier is the best option.

A purchase requisition is created in Oracle Procurement Cloud.

The supplier delivers the items, and they are received into inventory.

The inventory is reserved against the sales order.

The shipping process is initiated, and the order is delivered to the customer.

The sales order and supply order are closed.

Question # 3

Back-to-Back Supply Creation On-Hand Flow

The back-to-back on-hand available (ATP) flow is the simplest in terms of the number of steps that constitute the flow. This flow occurs where on hand supply is available in the fulfillment warehouse for the ordered back-to-back item at the time of order promising. Because on-hand goods already exist in the form of on hand, Oracle Supply Chain Orchestration directly sends a request to reserve the on hand quantity against the back-to-back sales order. You can ship the sales order immediately after the reservation is created.

The following figure shows the back-to-back supply creation on-hand flow.

Answer:

See the Explanation for the complete solution.

Explanation:

Back-to-Back Supply Creation: On-Hand Flow in Oracle Cloud

1. Overview of Back-to-Back On-Hand Flow

The Back-to-Back On-Hand Flow is the simplest and fastest fulfillment method in Oracle Cloud because the required stock is already available in the fulfillment warehouse at the time of sales order entry.

Unlike Buy, Make, or Transfer Flows , no additional supply is created. Instead, Oracle Supply Chain Orchestration (SCO) directly reserves the available inventory against the sales order, making it ready for immediate shipment .

2. Step-by-Step Back-to-Back On-Hand Flow Process

Below is a detailed step-by-step breakdown of the Back-to-Back On-Hand Flow using Oracle Fusion Cloud applications.

Step 1: Enter & Schedule Sales Order

The customer places a sales order in Oracle Order Management .

The system checks inventory availability in Oracle Inventory Cloud .

Oracle Global Order Promising (GOP) determines that the required stock is already available in the fulfillment warehouse.

No procurement, manufacturing, or warehouse transfers are needed.

The sales order is scheduled immediately for fulfillment.

✅ System Action: The system identifies that on-hand stock is available and proceeds to reservation.

Step 2: Reserve Available Inventory

Oracle Supply Chain Orchestration (SCO) reserves the available stock against the back-to-back sales order.

The system ensures that this stock is allocated only to this order , preventing other orders from using it.

✅ System Action: The system reserves the required quantity for the sales order.

Step 3: Ship the Sales Order

The order moves directly to shipping in Oracle Inventory Cloud .

The warehouse team picks, packs, and ships the goods using Oracle Shipping Execution .

An invoice is generated in Oracle Receivables .

The sales order is closed after shipment.

✅ Final Action: The system completes the order and ships it to the customer.

3. Oracle Fusion Cloud Modules Involved in On-Hand Flow

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4. Benefits of Back-to-Back On-Hand Flow

✔ Fastest Fulfillment Process – No need for procurement, manufacturing, or transfers. ✔ Minimizes Order Processing Time – Orders can be shipped immediately after reservation. ✔ Eliminates Additional Costs – No purchase orders, work orders, or transfers required. ✔ Ensures Inventory Optimization – Uses available stock efficiently. ✔ Improves Customer Satisfaction – Quick shipping and fulfillment.

5. Real-World Use Case

Scenario: Electronics Retailer Fulfilling a Popular Smartphone Order

A retailer sells Smartphone XYZ and has 100 units in stock at its fulfillment warehouse.

Process Flow:

A customer places an order for 10 units of Smartphone XYZ .

Oracle Global Order Promising (GOP) identifies that stock is available .

Oracle Supply Chain Orchestration (SCO) reserves 10 units against the sales order.

The warehouse team picks, packs, and ships the smartphones.

The customer receives the order, and the system closes the sales order .

✅ Result: The order is fulfilled immediately without additional supply creation.

Question # 4

An organization uses min-max planned items to generate movement requests automatically where the item ' s replenishment source is another subinventory. In this case, the min-max process should automatically generate a move request but it doesn ' t happen.

What is the reason?

Replenishment movement requests is not enabled for status control.

The source subinventory was not set at the organization level.

The source subinventory was not set at the item subinventory level.

Min-max report was generated at the subinventory level.

Question # 5

Which three sort criteria are available to pick material for a movement request?

Revision (*)

Serial

Lot (*)

Subinventory (*)

Question # 6

Your customer manages all the procurement and warehouse operations in the US and has decided to create a US business unit for this purpose. Identify two mandatory pieces of information required to create a US business unit.

Business Function (*)

Default Set (*)

Secondary Ledger

Buyer

Manager

Question # 7

What types of supply recommendations are generated from GOP? (Choose four)

Transfer

Cancel

Buy

On-hand

Make

Question # 8

Back-to-Back Supply Creation Flows

You can set up Oracle Fusion Cloud applications that support back-to-back fulfillment to trigger supply creations flows (buy, make, transfer, and on hand) after a sales order is entered and scheduled.

Each variant of the back-to-back flow differs in the supply document that ' s created and the supply execution application in which the document is created. Depending on the source of the item, supply is provided from manufacturing, procurement, or inventory. Then, after the supply is received into the fulfillment warehouse, the back-to-back order is ready for shipment to your customer.

The following table describes the supply creation flows and associated supply document supported for each flow when using back-to-back fulfillment.

Back-to-Back Supply Creation Buy Flow

The supply document for a back-to-back buy flow is a purchase order. Based on supply recommendations from Oracle Global Order Promising, a purchase order is created and reserved against the sales order. When the purchase order is received by the supplier, on hand is created to ship out the back-to-back sales order.

The following figure shows the back-to-back supply creation buy flow.

Answer:

See the Explanation for the complete solution.

Explanation:

Back-to-Back Supply Creation Flows in Oracle Cloud

Back-to-back (B2B) fulfillment in Oracle Fusion Cloud allows organizations to trigger supply creation (Buy, Make, Transfer, or On-Hand Reservation) after a sales order is entered and scheduled. The system dynamically generates supply documents depending on the source of the item and executes supply fulfillment through Oracle Procurement, Manufacturing, or Inventory Management .

1. Overview of Back-to-Back Supply Creation Flows

Each back-to-back flow follows these key steps:

Sales Order Entry & Scheduling – A customer places an order that requires supply creation.

Supply Order Generation – The system determines the best supply source based on predefined sourcing rules.

Supply Execution – The supply is created using procurement (Buy), manufacturing (Make), transfer (Transfer), or existing stock (On-Hand).

Receiving & Reservation – The supply is received and linked to the sales order.

Order Fulfillment – The sales order is shipped to the customer.

2. Back-to-Back Supply Creation Buy Flow (Procurement-Based Fulfillment)

The Buy Flow is used when the required item is procured from an external supplier because it is not available in stock or another warehouse.

Step-by-Step Buy Flow Process

Below is the step-by-step breakdown of the Back-to-Back Buy Flow with Oracle Fusion applications involved:

Step 1: Initiate Back-to-Back Sales Order

The customer places a sales order in Oracle Order Management .

The system checks stock availability in Oracle Inventory Cloud .

If no stock is available, Oracle Supply Chain Orchestration (SCO) triggers a supply request.

Oracle Global Order Promising (GOP) determines procurement as the best supply source.

The sales order is scheduled for back-to-back fulfillment.

✅ System Action: The system marks the sales order for procurement and creates a supply order.

Step 2: Create Supply Order

Oracle Supply Chain Orchestration (SCO) generates a Supply Order .

The system determines that a Purchase Order (PO) is needed.

A Purchase Requisition is created in Oracle Procurement Cloud .

✅ System Action: The system sends a request for procurement.

Step 3: Request Purchase Order (PO)

Oracle Procurement Cloud converts the requisition into a Purchase Order (PO) .

The PO is sent to the external supplier .

The PO is linked to the sales order , ensuring that supply is dedicated to fulfilling the order.

✅ System Action: The system creates a Purchase Order (PO) and tracks supplier delivery.

Step 4: Receive the Purchase Order (PO)

The supplier delivers the goods to the fulfillment warehouse.

The warehouse team receives the PO in Oracle Receiving .

The received inventory is updated in Oracle Inventory Cloud .

The supply is reserved against the back-to-back demand .

✅ System Action: The system marks the received supply as reserved for the sales order.

Step 5: Ship the Back-to-Back Sales Order

The order is picked, packed, and shipped from the warehouse.

Oracle Shipping Execution updates the order status.

An invoice is generated in Oracle Receivables .

The sales order is closed .

✅ Final Action: The system completes the order and ships it to the customer.

3. Oracle Fusion Cloud Applications Involved in Back-to-Back Buy Flow

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4. Benefits of the Back-to-Back Buy Flow

✔ Reduces Inventory Holding Costs – No need to stock large quantities in advance. ✔ Ensures Order-Specific Procurement – Every sales order is directly linked to supply. ✔ Automates Procurement & Order Processing – Seamless integration between Oracle modules. ✔ Enhances Customer Satisfaction – Quick fulfillment by sourcing products efficiently. ✔ Optimizes Supplier Collaboration – Real-time PO creation and tracking with suppliers.