Inventory Management (D) in Oracle Fusion Cloud SCM ensures optimal inventory levels by tracking

stock movement—receipts, transfers, and consumption—and maintaining availability data across

warehouses. For example, if stock drops below a reorder point (e.g., 100 units), it triggers

replenishment to avoid stockouts while preventing overstocking (e.g., holding 1,000 units when

demand is 200). Option A (Supplier Qualification) evaluates suppliers, not inventory levels. Option B

(Manufacturing Execution) tracks production, not overall stock. Option C (Cost Accounting) analyzes

costs, not physical stock movement. Inventory Management balances service levels with cost

efficiency, using real-time data to adjust stock dynamically, critical for operational success and

customer satisfaction.

Reference: Oracle Fusion Cloud SCM Documentation - "Inventory Management Overview"