Oracle SCM Functional Interview Questions & Answers - Inventory Module

Part IV
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What is inventory control?
Inventory control is the process of reducing inventory costs while remaining responsive to customer
demands. By this definition a store would want to lower its acquisition, carrying ordering and stockout costs to their lowest possible levels. However a store would need to have enough inventories to
meet any needs of its customers.
What does inventory affect in a store?
Inventory levels and their values can affect the income of the store, the amount of taxes paid, and
the total stocking cost.
How can the value of inventory be determined?
The value can be found using four methods in inventory control.
Standard Cost: The specific cost in which each item's cost is added together for the inventory's value.
Average Cost: The weighted average of the costs for a period to determine value.
FIFO Cost: First In First Out. In this method value is measured using the latest costs of goods while
working towards the beginning of the period until all goods in inventory are valued.
LIFO Cost: Last In First Out. In this method the costs of gods at the beginning of the period are used
to determine the inventory's value much like FIFO.
What are the important considerations in inventory control?
For inventory control to work at its best a store must consider the costs of acquisition, carrying,
ordering, and stock-out. The store must also look at its reordering system, its budgeting for
inventory, insurance and forecasted demand.
Will the changes made in a Workday calendar comes into effect after saving?
No. The changes made into a Workday calendar will come into effect only after Building the
Calendar.
How different weekly offs can be assigned to different shifts without doing it manually?
Suppose Monday is the Calendar Start day and we want Thursday as weekly off for 1st shift and
Friday for 2nd shift, enter the Workday Pattern for 1st as 3 On 1 Off and 3 On 0 Off. This means
that Monday, Tuesday and Wednesday are working days, Thursday is off and Friday, Saturday and
Sunday are again working days, for any week for 1st shift. And for 2nd shift enter the Workday
Pattern as 4 on 1 off and 2 on 0 off.
What is an Organization?
An Organization is an inventory location with its own Set of Books, Costing Method, Workday
Calendar and List of items.
What is a Sub inventory?
A Sub inventory is used when two physical inventory locations share the same Set of Books, Costing
Method, Workday Calendar, but different list of items.
How will you that a location is available for transaction in all Organizations?
While defining the Location, dont attach an Organization to it so that the location can be used for
any organization

What is the difference between Internal and External Organizations?

The difference between Internal and External Organization is that we cannot assign people to an
External Organization.
Examples of External Organizations:
Workers Compensation Insurance Carriers.
Organizations that are recipients of third party payments from Employees benefits.
What is an Item Master Organization?
The organization in which the items are defined is called the Item Master Organization. Child
Organizations (other organizations) refer to the Item Master for the item definition. There is no
functional or technical difference between the Item Master Organization and other Organizations.
However, for simplicity, it is recommended to limit the item master to just for an item defining
organization.
Is it possible to have different costing methods for different organizations under the same Item
Master Organization?
Yes. Even we can have dummy organizations for using different costing method for different costing
method for different items within an organization.
Can we use Average Costing in an organization where WIP is also installed?
No. We cant use Average Costing if WIP is installed.
What shall be the Costing Organization of an Org?
If individual organization wants to have control over its own cost, we will assign the current
organization itself as the Costing organization. If that is not the case, we can assign the Item Master
Organization or any other organization as the costing organization.
What are the Inventory material transactions interface tables.
Material Transactions Interface Tables are:
mtl_transactions_interface,
mtl_transactions_lots_interface,
mtl_serial_numbers_interface,
mtl_interface_errors
In which table the inventory material transactions history data is maintained after running the
interface program.
Material transactions data are maintained in mtl_material_transactions table.
In which table the onhand quantities of the items exist?
On-Hand quantities of the items are stored in mtl_onhand_quantities table.
In which table the subinventories are stored?
Sub inventories are stored in mtl_secondary_inventories table.
In which table the locators are stored?
Location information is stored in mtl_item_locations table.
Reference: Collected from various web sources.

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