Oracle Fusion SCM Interview Questions

Oracle Fusion Supply Chain Management (SCM) is a product that helps in handling supplies and demand. It manages material requirements, resources, and forecasts demand too. It offers order management where users can create sales orders. It also handles managing the execution and monitoring of manufacturing. In this post, we present to you the top 14 Oracle Fusion SCM interview questions. Our Oracle Fusion experts have carefully prepared these interview questions and answers by taking various concepts into account. Go through the below frequently asked Oracle Fusion SCM interview questions and answers that help in enhancing your skill.

1. What are the roles in which a person can work in supply chain management?

Ans: The following are the roles in supply chain management.

  • Logistic Engineer
  • Logistic Analyst 
  • Logistic specialist
  • Logistic Director

2. What is the formula for calculating annual costs?

Ans: We can calculate the total annual costs using this formula.

TC = DC +(D/Q)*S + (Q/2)*H

TC - Total cost

D - Demand

C - Cost per unit

Q - Order quantity

S - Cost incurred for placing an order

H - Annual holding and storage cost per unit of inventory

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3. What are the key Flexfields available in inventory?

Ans: The following are the seven key Flexfields available in inventory.

  • Account Alias
  • Item Catalogue
  • Stock Locator
  • Item
  • Item Category
  • Sales Order
  • Service Items

4. Tell the differences between 'Accrue On Receipt' and 'Accrue at Period End'?

Ans: 'Accrue On Receipt', also known as online accruals, will record the transactions to the general ledger immediately when a receipt is saved. 'Accrue at Period End' means that the transactions are not immediately saved to the general ledger. Instead, these accounting entries will be generated and sent at the end of the month.

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5. What are the planning methods in inventory?

Ans: Below are the five planning methods in Oracle Inventory.

  • Re-order point planning
  • Kanban Planning
  • Sub Inventory Replenishment Planning
  • Periodic Automatic Replenishment
  • Min Max Planning

6. What is the difference between purchased and purchasable flag for an item?

Ans: The purchasable flag is a status attribute flag that is used to control transactions on an item. If this flag is enabled, users can order this item in a purchase order. If it is not enabled, users cannot purchase this item. The purchased flag denotes that the item will be received if it is already in approved order.

7. Explain about ABC analysis.

Ans: The process of categorizing items in the inventory into three classes is called ABC Analysis. With A being the most valuable item and C being the least valuable item. It helps in monitoring and tracking valuable items in the inventory.

8. What is the picking rule in inventory?

Ans: The picking rules define the sort criteria for items stored in the sub inventory, lot, locator, revision. It will automatically allocate quantity moving process manufacturing batches or sales orders. We can assign a picking rule to an item through the Order Management tab.

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9. Explain the item master organization.

Ans: The items in an organization are defined using a logical entity called item master organization.When you define an item, you can assign many other organizations to it. However, you won't be able to copy items across item master organizations.

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10. Which tables contain sub inventory related information for an item?

Ans: The subinventory related information for an item will get stored in,


11. What are the activities that are performed at the operational level in the logistics?

Ans: Here are the basic activities that are generally performed at the operational level in the logistics.

  • Picking the order
  • Check the goods and receipt
  • Stock update
  • Information about bulk storage
  • Concerned documents
  • Scheduling of load
  • Replenishment of load

12. What are the steps involved in defining an item?

Ans: The steps for defining an item are,

  • Create an item in the item master form.
  • Copy the template from the tools menu, assign attributes to the item, and save it.
  • Assign a category to the item and save it.
  • Choose the organization assignment, assign inventory organizations to the item by checking the checkbox, and save it. 

13. What is an item category and category set?

Ans: Items of similar characteristics will be assigned to a logical classification called category. A category set is a grouping of several categories. An item can be assigned to a category for each category set. The category information is stored in the MTL_CATEGORIES_B table, and the category set information is stored in the MTL_CATEGORY_SETS_B.

14. Explain about the blind shipment.

Ans: When buyers do not know anything about the seller of the shipment is called blind shipment. That means the seller details are not shared with the buyer. Buyers may not show much interest to go with a blind shipment, which might result in fewer chances for purchase.

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According to a survey, there are a lot of customers for Oracle Fusion SCM in all the industry verticals. 18.8% of them are from manufacturing, 18.8% of them are from transportation, 18.8% of them are from retail, 12.5% of them are from professional services, 6.3% of them are from healthcare, 6.3% of them are from life sciences, 6.3% of them are from insurance, 6.3% of them are from oil, gas, and chemicals. So, there will be a lot of opportunities for both Oracle Fusion SCM freshers and experienced candidates. 

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