Oracle Fusion SCM Interview Questions

Last updated on Jan 05, 2024

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 top job roles a person can work in Supply Chain Management:

  • Supply Chain Manager
  • Logistics Engineer
  • Logistic Analyst
  • Logistics Coordinator
  • Logistics Director

2. What is the formula for calculating annual costs?

Ans. The following formula is useful to compute the total annual costs:

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

Each alphabet used in this formula denotes a different part of the cost calculation.

  • TC refers to - The Total cost
  • D refers to - Demand
  • C refers to - Cost/unit
  • Q refers to - Order Quantity
  • S refers to - The Cost incurred for order placing
  • H refers to - Annual holding and storage cost/unit of inventory

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3. What are the key Flexfields available in inventory?

Ans. The following are the major Flexfields available in the inventory:

  • Account Aliases
  • Item
  • Item Category
  • System Items
  • Item Catalogue
  • Sales Order
  • Stock Locator
  • Service Items

4. What is the picking rule in inventory?

Ans. The picking rules in inventory allow you to determine the criteria of material consumption. Moreover, it defines the sorting condition for the items stored within the sub-inventory, lot, locator, and revision. Quantity movement method manufacturing batches or sales orders will be automatically allocated. Further, we can use the Order Management tab to assign a picking rule to an item.

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

Ans. It is just a file containing information about the seller and the buyer and their addresses. Additionally, there are instructions for shipping the package to the customer's location exactly as it arrived originally. The additional items included in the bill of lading are:

  • The total amount on the day of shipment.
  • The real value of the shipment.
  • The precise weight.
  • The item's description.

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

Ans. It is merely a contract between the firm that provides the commodity to the customer and the transportation company. In essence, this is done to ensure that the cost of the cargo is kept to a minimum for both the transporter and the buyers. More than other factors, the shipment's price depends on the weight of the item being transported, the distance traveled on the selected route, and a few other factors.

7. What are the planning methods in inventory?

Ans. The following are the top Oracle Inventory planning methods:

  • Planning of reorder points
  • Kanban Planning
  • Minimum Maximum Planning
  • Regular Auto-Replenishment
  • Sub-Inventory Resupply Planning

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

Ans. The following steps will help you define an item:

  • Using the item master form, build an item.
  • Make a copy of the template using the tools menu, give the item properties, and store it.
  • Save the item by allotting it as a category.
  • Select the organization assignment, check the box to associate the item with an inventory organization, and save the change. 
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9. What exactly do you mean by Deadweight tonnage?

Ans. The term "Deadweight tonnage" exhibits the difference in weight between the vehicle used for shipping, which was empty, and the car that was loaded. It is difficult for businesses and shipping firms to weigh each shipment separately because they are frequently made in bulk. The total weight of all shipments may be considered in some scenarios.

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10. What is an item category and category set?

Ans. Items with identical features will be grouped into a category, which is a logical grouping. A collection of multiple types is called a category set. An item can be allocated to a class for every set of categories. The MTL_CATEGORIES_B table contains category information, while the MTL_CATEGORY_SETS_B table has category set information.

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

Ans. The key positions are the logistics director, logistics coordinator, logistics analyst, logistics engineer, supply chain manager, and logistics specialist.  .

Intermediate Oracle fusion SCM interview questions

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

Ans. A status attribute flag is used to manage transactions on an item is the purchasable flag. Users can order this item in a purchase order if this flag is enabled. Users are unable to buy this item if it is disabled. If the item is already in authorized order, the purchased flag indicates that it will be received.

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. When a receipt is saved, "Accrue On Receipt," called online accruals, automatically records the transactions to the (GL) general ledger. The phrase "Accrue at Period End" indicates that the transactions are not immediately added to the public ledger. Rather, these accounting entries will be produced and passed on at the end of each month.

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

Ans: The following tables store the sub-inventory-related data for an item:

  • MTL_ITEM_SUB_INVENTORIES
  • MTL_SECONDARY_INVENTORIES

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

Ans. An approach that is often used is known as cross-docking. The products are loaded directly onto the departing trucks after being unloaded from the incoming vehicle. It is possible to minimize product and storage costs greatly with little effort.

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

Ans. It's a direct note informing the clients about the (shipment) cargo. It often includes details about the product's shipping, packing, and routing firm. Along with this communication, a few companies are also sending a copy of the invoice. It ensures that the shipper keeps customers fully informed about everything.

18. What is the document against acceptance?

Ans. It is just a contract that the customer signs stating that the full cost of the product is their responsibility. Usually, it is signed before the shipment's ownership is transferred. Since buyers could reside in various places, contracts are typically signed electronically. This document notifies the shipper that the item is ready for delivery or transfer.

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

Ans. The following are the basic tasks that are often carried out in logistics at the level of operations.

  • Selecting the order
  • Verify the products and the invoice.
  • stock report/update
  • Details regarding large-scale storage
  • Documents of concern
  • Load scheduling

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

Ans. Consumers should continue to ensure that the greatest product is made without sacrificing quality. Customers can have access to all the necessary goods where they truly want them to be. Furthermore, customers will continue to enjoy stronger after-sale support, which is one of the most important elements that can contribute to the success of any modern business today.

Advanced Oracle fusion SCM interview questions

21. Explain about ABC analysis.

Ans. ABC Analysis is the technique of grouping inventory items into three different classes. The most valued object is A, whereas the least valuable item is C. Further, it facilitates tracking and monitoring precious inventory items.

22. Explain the item master organization.

Ans. A logical object refers to the item master organization that defines the items within an organization. An item can have multiple entities assigned once it has been described. However, objects cannot be copied across item master organizations.

23. Explain about the blind shipment.

Ans. Blind shipment refers to a load where the buyers are unaware of the vendor or seller. It indicates that the buyer cannot access the seller's details. A blind shipment may not catch buyers' interest, which could lead to fewer chances of sales.

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

Ans. First and foremost, the logistician is in charge of managing the entire supply transition. It is the primary duty of this professional. Furthermore, the logistician's duties include performing transport-related activities and maintaining proper material storage.

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

Ans. Retailers should ensure that expensive things are no longer stored with them. It is because there is no need for storage—they are supplied to clients extremely fast.

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

Ans. Design networks are becoming increasingly essential to suppliers and retailers to meet customer satisfaction and service goals. Businesses can still greatly reduce their market competition if SCM is effective, which Oracle Fusion can achieve.

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

Ans. Yes, SCM is going to add greatly to this issue. This is mainly because SCM only gives businesses more control and lower costs related to their supply chains. SCM can also reduce fixed asset spending, benefiting businesses by increasing their net income. Additionally, enhanced cash flow could also be assured.

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?

Ans. SCM offers a powerful remedy for this. It is easily capable of carrying out a medicinal mission if utilized properly. In the event of a disaster within the organization, they can use it during emergencies and relief activities. Finding issues is simple and doesn't require an increasing number of staff.

29. Tell something about the Anti-dumping duty?

Ans. It is merely an import duty imposed under certain conditions, such as when it finds the imported items less expensive than the genuine ones. It is intended to stop material loss in the nation of import.

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

Ans. It is referred to as "Bulk Angle Storage." It indicates that processing the content will be simple. The same cannot, however, be applied in every situation. It depends on what's written. If not, companies frequently employ the "Bulk Storage in Vertical" strategy, which is recognized as being more effective.

31. How the identification of the delivered goods does?

Ans. Compliance stickers, which typically have barcodes and make this task simple to complete, are generally used to achieve this. One can also gain much other important information about the distribution from this.

32. How batch picking help saving cost?

Ans. In a nutshell, it's a technique that divides the entire inventory into smaller batches or groups. The shipper can save lots of money because the cost is computed based on a batch rather than each item.

Conclusion

A survey indicates that Oracle Fusion SCM has a large customer base across all industry sectors. It includes different industries such as manufacturing, transportation, retail, professional services, healthcare, life sciences, insurance, and oil, gas, and chemicals. Thus, almost all industries use Oracle Fusion SCM in their operations. Therefore, there will be plenty of career offers for applicants with experience and freshers in Oracle Fusion SCM.

About Author

As a Senior Writer for HKR Trainings, Sai Manikanth has a great understanding of today’s data-driven environment, which includes key aspects such as Business Intelligence and data management. He manages the task of creating great content in the areas of Digital Marketing, Content Management, Project Management & Methodologies, Product Lifecycle Management Tools. Connect with him on LinkedIn and Twitter.

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