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Exam : ORACLE 1Z0-226
Title : Oracle EBS R12: Inventory and Order Management Fundamentals


1. Company Z has two sites. Both sites are inventory organizations. One is in Colorado, the other is in
New Jersey. Inventory is expected to travel between the two, in both directions.
The following requirements are identical for the two organizations:
a) Ownership transfer occurs upon ship confirm.
b) There is a two-step receiving process.
c) Only approved orders would be performeD.
Which setups in Shipping Networks meet these criteria?
A. Transit Type = Direct, FOB = Receipt, Receipt Routing = Direct, Internal Order Required = checked
B. Transit Type = Intransit, FOB = Receipt, Receipt Routing = Direct, Internal Order Required =
unchecked
C. Transit Type = Intransit, FOB = Receipt, Receipt Routing = Standard, Internal Order Required =
checked
D. Transit Type = Direct, FOB = Shipment, Receipt Routing = Standard, Internal Order Required =
checked
E. Transit Type = Intransit, FOB = Shipment, Receipt Routing = Inspection, Internal Order Required =
checked
Answer: C

2. For which type of move order is approval required?
A. Planning Move Order
B. Shipping Move Order
C. Production Move Order
D. Requisition Move Order
E. Replenishment Move Order
Answer: D

3. Identify four functions that a user can perform using the Material WorkbencH. (Choose four)
A. Create move orders.
B. Create and save queries.
C. Change material statuses.
D. Perform miscellaneous issues.
E. Perform miscellaneous receipts.
F. Perform pick confirm transactions.
G. Perform ship confirm transactions.
H. View material in receiving, on-hand quantities, and intransit material.
Answer: ABCH

4. Each UOM class must have a base unit specifieD.
Which represents a base unit for the UOM Class Quantity?
A. One
B. Each
C. Case
D. Gross
E. Dozen
Answer: B

5. XYZ is a chemical manufacturing company. On a daily basis, it produces 100 kilos of Item A from a
single production batcH.
100 kilos of item A manufactured from a single batch has a single expiration datE. However, the purity
of item A varies as follows:
Category 1: 95%
Category 2: 85%
Category 3: 50%
From an implementation perspective, which setup or process would meet this requirement?
A. Enable lot control. Map three categories as coproducts.
B. Enable lot control for item A. Create three lots to represent the categories.
C. Enable lot control for item A. Create three child lots and link them with the parent lot.
D. Enable lot and grade control for item A. Have three categories mapped with grades.
E. Enable lot and serial control for item A. Create one lot and three categories that are mapped with
serial numbers.
Answer: D

6. The client requires that cycle counts are entered by the warehouse stafF. However, only the
warehouse manager can schedule counts, generate count requests, and approve the counts that are out
of tolerancE.
What should you consider when setting up the cycle counting process? (Choose threE. )
A. the frequency of the recounts required
B. the number of automatic recounts required
C. the tolerance level for automatic adjustment
D. Modify the workday calendar used by the warehousE.
E. the responsibility that has access to the Approve Counts function
F. the number of serial and/or lot controlled items included in the count
Answer: BCE

7. A user informs you about the inability to create a requisition using category 110.33. The Purchasing
category structure is set up as Item Category.Commodity.
The user has described the problem as follows:
"I am able to select 110 for the item category and 33 for the commodity, but when I click OK I receive an
error."
Identify two reasons for the error. (Choose two.)
A. The commodity 33 has been deactivateD.
B. The item category 110 has been deactivateD.
C. The category 110.33 is not assigned to a buyer.
D. Category 110.33 is not set up in the categories form.
E. 110.33 is not assigned to the Purchasing category set.
F. 110.33 has not been added to the appropriate value set.
G. Allow Dynamic Inserts is not checked for the Purchasing category flexfielD.
Answer: DE

8. The Check ATP option is enabled for an item in the Finished Goods subinventory.
Which action will occur?
A. Check the quantity requested against forecast.
B. Generate a requisition for the requested quantity.
C. Permit order booking based on a successful test.
D. Check the quantity requested against safety stock.
E. Check the quantity requested against Economic Order Quantity (EOQ).
Answer: C