Forecast Accuracy (C) measures the effectiveness of the Demand to Management OMBP by

comparing predicted demand to actual demand, reflecting how well the process anticipates market

needs. For example, if a forecast predicts 1,000 units and actual sales are 950, accuracy is 95%,

indicating strong performance. Option A (Customer Acquisition Cost) is a marketing metric,

unrelated to demand planning. Option B (Supplier Lead Time) assesses supplier performance, not

forecasting. Option D (Inventory Turnover) measures stock movement, an outcome influenced by

forecasting, not a direct metric. Accurate forecasts drive efficient inventory and production planning,

reducing costs (e.g., avoiding $10,000 in overstock) and ensuring customer satisfaction.

Reference: Oracle Fusion Cloud SCM Documentation - "Demand Management Metrics"

Cost Accounting in Oracle Fusion Cloud SCM is designed to track and analyze costs associated with

manufacturing processes, including material, labor, and overhead expenses. This function supports

financial reporting by providing detailed cost data and aids decision-making by offering insights into

cost drivers and profitability. Option A is incorrect because cost accounting does not prevent

fluctuations—it records and manages them. Option B is wrong as it encompasses supplier-related

costs, not just customer payments. By maintaining accurate cost records, this module ensures

compliance with accounting standards and enables strategic cost management.

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

Embedding Oracle Method Based Practices (OMBPs) in Starter Configurations (C) provides a prebuilt,

standard configuration that streamlines Oracle Fusion Applications implementations using a solution-

led approach. These configurations incorporate best practices—e.g., predefined workflows for

demand planning—reducing setup time and ensuring consistency. For instance, a company can

deploy SCM modules with optimized settings out of the box, customizing only where necessary.

Option A is incorrect—third-party access isn’t a focus; security restricts modifications. Option B is

partially true but misses the point—OMBPs standardize first, then allow customization, not the

reverse. This approach accelerates deployment, lowers costs, and leverages Oracle’s expertise for

reliable outcomes.

Reference: Oracle Fusion Cloud SCM Documentation - "OMBP Starter Configurations"

Global Order Promising (GOP) in Oracle Fusion Cloud SCM provides real-time order promising by

evaluating supply and demand constraints across the enterprise, ensuring accurate delivery

commitments. Option A is incorrect as GOP considers global, not just local, availability. Option C is

false—it doesn’t guarantee a 24-hour fulfillment but provides feasible timelines. This enhances

customer satisfaction and planning accuracy.

Reference: Oracle Fusion Cloud SCM Documentation - "Global Order Promising"

The Predict Demand process within the Demand to Management OMBP in Oracle Fusion Cloud SCM

leverages advanced capabilities to enhance demand planning. Collaborative Forecasting Platform (A)

enables stakeholders—such as sales teams, suppliers, and distributors—to collaborate in real time,

inputting qualitative insights (e.g., market trends or promotions) that refine forecasts beyond pure

data analysis. For example, a retailer might adjust forecasts based on an upcoming sale confirmed via

the platform, improving accuracy. Machine Learning-based Forecasting (B) uses algorithms to analyze

historical data, detect patterns (e.g., seasonality or anomalies), and adapt predictions dynamically,

making it more precise than traditional methods. For instance, it might identify a spike in demand for

umbrellas during unexpected rainy seasons. Option C (Statistical Forecasting) is a traditional method

relying on statistical models but lacks the adaptive intelligence of machine learning, though it’s still

used as a foundation. Option D (Demand Sensing) focuses on short-term demand signals (e.g., point-

of-sale data) rather than long-term planning, making it complementary but not a core strength of

Predict Demand. Together, A and B empower businesses with both human collaboration and cutting-

edge AI, ensuring robust demand planning that balances quantitative and qualitative inputs.

Reference: Oracle Fusion Cloud SCM Documentation - "Demand Management and Predictive

Analytics"

Cost Rollup (C) in Oracle Fusion Cloud SCM calculates the total cost of a product by aggregating

material, labor, and overhead expenses across production stages. For instance, a widget might cost

$10 total—$5 materials, $3 labor, $2 overhead—rolled up from raw inputs to finished goods. Option

A is false—Cost Rollup enhances, not eliminates, cost accounting by providing detailed data. Option

B is incorrect—it includes all cost components, not just labor. Option D is wrong—costs fluctuate with

market conditions; Rollup reflects current values. This function ensures accurate pricing, profitability

analysis, and cost control, critical for financial decision-making and competitive strategy.

Reference: Oracle Fusion Cloud SCM Documentation - "Cost Rollup Overview"

The Available to Promise (ATP) process (A) in Oracle Fusion Cloud SCM calculates the quantity of

products available to commit to new customer orders by analyzing current inventory levels and

supply constraints, such as production capacity, supplier lead times, and existing order

commitments. For example, if a warehouse has 200 units of a product with 50 already promised, ATP

indicates 150 units are available, ensuring accurate delivery promises. This real-time calculation

prevents overpromising and aligns customer expectations with operational reality. Option B is

incorrect—ATP does not guarantee immediate shipment but provides feasible timelines based on

availability, not an unrealistic universal promise. Option C is false—demand forecasting complements

ATP by informing supply planning; it doesn’t eliminate it. Option D is irrelevant—supplier payments

are managed by financial modules, not ATP, which focuses on inventory and supply. By ensuring

reliable commitments, ATP enhances customer satisfaction, reduces order cancellations, and

optimizes resource use across the supply chain.

Reference: Oracle Fusion Cloud SCM Documentation - "Available to Promise Overview"

Global Order Promising (C) provides real-time order commitment dates by analyzing supply (e.g.,

inventory, production) and demand (e.g., orders, forecasts) constraints enterprise-wide. For instance,

if 100 units are requested and 70 are available with a 3-day lead time, it commits to 3 days. Option A

is false—no universal same-day guarantee exists. Option B is incorrect—supplier data often informs

promises. Option D is wrong—it considers global, not just local, availability. This feature ensures

reliable promises, reduces cancellations, and aligns customer expectations with operational capacity.

Reference: Oracle Fusion Cloud SCM Documentation - "Global Order Promising Overview"

Supplier Qualification Management (D) assesses and approves suppliers based on compliance (e.g.,

regulatory standards) and performance criteria (e.g., delivery reliability). For example, it might

evaluate a supplier’s 95% on-time delivery rate and ISO certification before approval. Option A (Cost

Accounting) tracks costs, not supplier quality. Option B (Supplier Portal) facilitates communication,

not qualification. Option C (Manufacturing Execution) manages production, not supplier vetting. This

feature ensures reliable, high-quality suppliers, reducing supply chain risks and enhancing

procurement outcomes.

Reference: Oracle Fusion Cloud SCM Documentation - "Supplier Qualification Management"

Below is the batch of questions formatted as requested, with comprehensive and detailed

explanations verified against Oracle Fusion Cloud Applications SCM and Procurement

documentation. Each explanation is extensive, covering the reasoning behind the correct answer,

why other options are incorrect, practical examples, and the broader implications within the SCM or

Procurement framework. All questions have four options, so the format includes A, B, C, and D. Note

that

Receipt Accounting in Oracle Fusion Cloud SCM records the receipt of goods and services, generating

accounting entries for financial reporting and cost tracking. Option A (timely payments) is a

downstream process, not its core function. Option C (contract validation) pertains to procurement,

not receipt accounting. This ensures accurate financial records and compliance.

Reference: Oracle Fusion Cloud SCM Documentation - "Receipt Accounting Overview"