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.

Now let's have a look into the Oracle fusion SCM interview questions based on the basic, intermediate and advanced levels.

Basic Oracle fusion SCM interview questions

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. 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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5. What type of information can you find in a bill of lading?

Ans: It is essentially a file providing data on both the buyer and the seller, along with the address of both parties. There are also directions for transporting the shipment so that it meets the customer in the original position. The total quantity on the date of shipment, the actual value of the shipment, the exact weight, as well as the description of the item, are the other items listed in the bill of lading.

6. What do you mean by less than truckload situation?

Ans: It is simply an arrangement between the transport company and the company that provides the commodity to the customer. Basically, this is to make sure that both the buyers and the shipper do not have to pay a lot of money for the shipment. Rather than anything else the price of the shipment is determined on the basis of factors such as the weight of the commodity to be shipped, the mileage on the chosen lane and a few other factors.

7. 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
8. 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. 

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9. What exactly do you mean by Deadweight tonnage?

Ans: It demonstrates the variation in between weight of the loaded vehicle and the weight of the unloaded vehicle used for the shipment. Since shipments are often in bulk, it is very difficult for companies and the shipping company to weigh all of them individually. In certain cases, the bulk weight of all shipments shall be considered.

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10. 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.

11. Are you familiar with the different roles and positions at which a person can work in supply chain management?

Ans: Some of the key roles are:Logistic engineer, logistic specialist, logistic director and logistic analyst, etc.

Intermediate Oracle fusion SCM interview questions

12. What is the difference between a 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.

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

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

16.Name one method that enables you to save loading cost?

Ans: Cross-docking is a technique that is commonly adopted. In this process, the materials are essentially unloaded from the incoming truck and directly loaded onto the outbound trucks. Storage costs and product costs can be saved to a very good degree and without much effort.

17.How well can you define shipment advice of shipment?

Ans: Yeah, essentially, it's a note sent directly to the customers about the shipment. It usually contains information on the routing, packing and shipping company responsible for the product. A few businesses are also sending a copy of the invoice with this note. It ensures that customers are well informed by the shipper about everything.

18.What is the document against acceptance?

Ans: It is simply a contract signed by the customer specifying that he/she is liable to pay the full cost of the product. It is usually signed prior to the transfer of possession of the shipment. Generally, it is signed in electronic mode as buyers may have different locations. This paper informs the shipper that the commodity can be transferred or delivered.

19. 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
20.How can customers benefit from an organization with strong Supply Chain Management?

Ans: Customers should still ensure that the best product is produced without compromising on quality. All the appropriate items can be made available to the consumers at the place they really want them to be. In addition, consumers will still ensure better service after sales, which are in reality, one of the greatest factors that can lead to the success of almost any modern company at the present time.

Advanced Oracle fusion SCM interview questions

21.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.

22.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.

23.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.

24.Imagine yourself as a logistician, what would be your prime job roles?

Ans: The very first thing is that the logistician is responsible for handling supply transition as a whole. This is the main obligation. In addition to this, it is also the duty of the logistician to carry out transport-related tasks as well as to store materials in the correct manner.

25.Give anyone any benefit that retailers can have from an SCM?

Ans: Well, retailers should still make sure they no longer need to store costly items with them. This is because they are shipped very quickly to customers and no storage is needed in the true sense of the term.

26.How can you say that total supply chain cost can be reduced through Oracle Fusion SCM?

Ans: Both retailers and suppliers are increasingly dependent on design networks when it comes to achieving the customer satisfaction and service objectives. If supply chain management is efficient, which can be accomplished by Oracle Fusion, companies can still reduce competition on the market to a very high degree.

27.Can Supply chain management help to improve the financial position of an organization? If so, how?

Ans: Yeah, SCM will make a lot of contributions to this matter. This is primarily because supply chain management simply helps companies to reduce the cost of the supply chain and to have greater control over it. SCM is also capable of minimising spending in fixed assets, and the positive thing is that companies will simply raise their net income. In addition, improved cash flow may also simply be guaranteed.

28.Do the applications of SCM limited to controlling and managing of goods only? If not, what other tasks it can manage on behalf of an organization?

SCM is a strong solution to this. If used effectively, it can easily be used to carry out a medical mission.Organizations can also make use of the same during emergency situations as during relief operations in the event of any disaster within the organisation. Issue diagnosis can easily be made without needing more and more people.

29.Tell something about the Anti-dumping duty?

Ans: It is simply an import duty which is applicable in some special situations, i.e. where the imported goods are found to be less costly than the real ones. This is meant to prevent material loss in the country where it is imported.

30.Suppose there is a limited place to accommodate the containers, what is the commonly used method adopted by the organizations

Ans: The system is "Bulk Angle Storage." This means that the content can be processed easily. However, the same cannot be applied in all instances.It actually depends on the content. Otherwise the "Bulk Storage in Vertical" approach is known to be more efficient and is commonly used by organisations.

31.How the identification of the delivered goods does?

Ans: This is usually achieved with the aid of compliance stickers, which generally contain barcode, with the help of which this mission can easily be accomplished. A lot of other valuable knowledge on the distribution can also be learned from this.

32. How batch picking help saving cost?

Ans:It is essentially a method in which the total inventory is divided into small classes or batches. The cost is measured on a batch rather than on individual products, and the shipper can save up to a good extent.


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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