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Oracle Fusion SCM Interview Questions

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Oracle Fusion SCM Guide
Oracle Fusion SCM Implementation

1) How do you calculate Total annual cost?

Total Annual Cost equation:
TC = DC + (D/Q)*S + (Q/2)*H
TC = Total annual cost
D = Demand
C = Cost per unit
Q = Order quantity
S = Cost of placing an order or setup cost
H = Annual holding and storage cost per unit of inventory

2) Have you used economic order quantity [EOQ]?

Yes. It’s a quantitative inventory model that I have used to find the most economic quantity to order based on cost and demand factors. If C=Carrying cost per unit per year; F=Fixed cost per order; D=Demand in units per year; Formula for Economic Order Quantity= ((2 × F × D)/C) (1/2)

3) How will you calculate the Total length of the supply chain?

Total length of the supply chain = DRM + DWIP + DFG

4) How to calculate Supply Chain Working Capital Productivity Ratio?

SWC (Supply Chain Working Capital) = INV+ AR-AP. Where: SWCP (SWC productivity) = NS/SWC

5) How to calculate exponential smoothing?

It’s used in forecasting procedure: F (t) = Ft-1 + a ((At-1) – (Ft-1))

6) How to calculate flow time?

Little’s Law relates throughput, time and inventory: Flow time = Inventory (WIP)/Throughput rate

7) What’s the use of Global Trade Item Number (GTIN)?

The Global Trade Item Number is a 14-digit item numberused in item identification system for products. It’s a standard number used in RFID and electronic commerce.

8) How to use a PKI system in supply chain?

Public Key Infrastructure (PKI) offers a strong linkage between business identities and transactions throughout the supply chain. In a PKI system, each user has two keys: a public key and a private key. These keys can be used for encrypting and decrypting information, for electronically signing electronic information, and for verifying the authenticity of their owner.

9) Explain your experience with the Cost analysis?

Cost analysis=Review of the potential provider’s cost elements to determine their appropriateness and reasonableness. I have conducted the Cost analysis as a review of: Need for categories of personnel & reasonableness of personnel work time proposed, indirect cost, base to which rates are applied. Compare estimated costs with prior actual costs.

10) Explain your experience with supply chain performance indicators?

Consists of four types of indicators: Quality, time, financial, and productivity. Cp a measure of process capability that compares the specification width with the process width- not adjusted for lack of process centering. Cpk a measure of process capability that compares the specification width with the process width- adjusted for lack of process centering.

11) How do you forecast?

Use Market research and Historical analogy to forecast.

12) Explain your experience with product’s life cycle?

There are five stages of a product’s life cycle: 1. Extraction
2. Production
3. Packaging and Transport
4. Usage
5. Disposal

13) When a process is considered to be of six sigma quality?

When there are no more than 3.4 non-conformities per million opportunities.

14) Have you performed marketing functions?

Yes, I have performed these marketing functions of supply chain.

1. Buying
2. Selling
3. Storing
4. Transporting
5. Sorting
6. Financing
7. Information Gathering
8. Risk Taking

15) Explain your experience with Material management?

I have worked in material management department, which had the authority and responsibility of all activities, concerned with the flow of materials in the organization.
My responsibilities were:
1. Efficient use of the working capital.
2. Responding to the market changes related to any product.
3. Ensuring the cooperation of all departments.
4. Providing best services to the customer.
5. Analyzing materials and supply to reduce cost.
6. Improve quality and ensure supplier performance.
7. Maintain minimum inventory levels

16) How the purchasing departments establish and maintain policies and procedures for the acquisition and payment of goods and services?

It authorizes the delegation of purchasing authority and establishes and maintains policies and procedures for the acquisition and payment of goods and services.

17) A supplier partnership focuses on which relationship?

It focuses on cooperative rather than adversarial relationships with suppliers.

18) What are the responsibilities allocated to the production environment?

1. Product fabrication
2. Work schedules

19) How will you ensure better decision making capability?

By using cross-functional sourcing teams.

20) What you suggest for optimizing purchasing and production departments?

suggest these responsibilities can be shared by both:
1. Product fabrication
2. Lead time for delivery of material
3. Work schedules
4. Selection of sources of supply

21) What are different planning methods in Inventory?

There are 5 different planning methods in oracle Inventory
1. Subinv Replenishment Planning
2. Min Max Planning
3. Re-order point planning
4. Kanban Planning
5. Periodic Automatic Replenishment

22) What are the setups for different planning method (Min-Max)?

1. Setup the item in master org and assign the item to the org for which Min-Max planning is used
2. Attributes, Inv Planning method: Min-Max
3. Min-Max Qty should have been defined
4. Safety Stock method should be non MRP Planned
5. Determine what should be the status of the Requisitions created for the planning
Do this with profile option INV: Minmax Reorder Approval
1. IF Use ASL has been enabled, then Requisition will populate the supplier data from the ASL setup which is assigned to the item Sourcing rules can be defined for this
Then need to assign sourcing rule to the item
1. In Inventory responsibility, under Planning run the Min Max planning report with required parameter.

23) What is the concurrent program for the planning?

Min Max planning report under planning menu in Inventory responsibility

24) What are the setups for expense item?

Should not be Inventory Item 1. No Stockable 2. No Transactable 3. No Costing, Inv Asset

25) How many key flexfields are there in Inventory?

Seven KFF are there in Inventory
1. Account Alias
2. Item
3. Item Category
4. Item Catalogues
5. Stock Locators
6. Sales Order
7. Service Items

26) What is the use of sales order KFF?

1. This is used during material transaction when source is Sales Order
2. Segments are Sales order Number.Sales Order Type.Sales Order Source

27) How we can have the item key flexfield with 2 segments, is it possible, if yes then how, if no then why?

1. This can be modified using Flexfield>Key> Segments
2. Query the System Items, then you can modify the existing structure, or you can add a new one.

27) How will you inactivate the Inventory locations?

By giving Inactive date in the Location form

28) What all setups you have done in inventory organization implementation?

1. Location
2. Calendar
3. Organization
4. Parameter
5. Cost Group
6. Subinventory
7. Stock Locator
8. Receiving Options
9. Shipping Networks
10. Intercompany Transaction flows
11. Cost Subelements

29) What are the valuation accounts used in Inventory?

1. Material: An asset account that tracks material cost. For average costing, this account holds your inventory and intransit values. Once you perform transactions, you cannot change this account.
Material Overhead An asset account that tracks material overhead cost.
2. Resource: An asset account that tracks resource cost.
3. Overhead: An asset account that tracks resource and outside processing overheads.
Outside processing An asset account that tracks outside processing cost.
4. Expense: The expense account used when tracking a non-asset item

30) What is ABC Analysis and why it is being used?

1. ABC Analysis is an Inventory categorization method to categorize items into 3 different classes A being the most valuable and C being the least valuable ones.
2. Using this Analysis, it will be easy to monitor and keep on track of the valuable items like frequently doing cycle counts on A class items, etc.

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