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Free 1z0-519: Oracle EBS R12.1 Inventory Essentials Exam Questions and Answers
Last updated: January 14, 2025
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316-1z0-519: Oracle EBS R12.1 Inventory Essentials
#Question
What is 'ineffective inventory management' likely to result in?
A.Increased customer satisfaction
B.Excess stock and stockouts
C.Higher operational efficiency
D.Improved supplier relationships
Correct Answer:
B
Ineffective inventory management can lead to excess stock and stockouts, negatively impacting sales and customer satisfaction due to unavailability of products.
#Question
In the context of inventory management, what does 'lead time' mean?
A.The process of conducting audits
B.The duration from order placement to delivery
C.The time taken for pricing adjustments
D.The time it takes to return items
Correct Answer:
B
Lead time refers to the time duration from when a purchase order is placed until the inventory is received and available for use.
#Question
What does the term 'fill rate' refer to in inventory management?
A.The percentage of customer orders filled completely
B.The speed of stock delivery
C.The cost of inventory handling
D.The rate at which inventory is replenished
Correct Answer:
A
Fill rate measures the percentage of customer orders that are fulfilled completely and on time, reflecting inventory availability and service levels.
#Question
What is the primary function of 'inventory audits'?
A.To ensure compliance and accuracy of records
B.To manage vendor relationships
C.To increase sales
D.To track customer satisfaction
Correct Answer:
A
The primary function of inventory audits is to ensure that stock levels recorded in the system match actual physical counts for accuracy and compliance.
#Question
What does 'stock replenishment' involve in inventory management?
A.Ordering new stock to maintain levels
B.Reducing inventory levels
C.Distributing excess inventory
D.Eliminating safety stock
Correct Answer:
A
Stock replenishment involves ordering new inventory to maintain adequate stock levels and meet customer demand effectively.
#Question
How does 'inventory pooling' benefit businesses?
A.Increases carrying costs
B.Promotes inefficient stocking
C.Reduces stockouts through shared inventory
D.Limits product availability
Correct Answer:
C
Inventory pooling reduces stockouts by allowing multiple locations or departments to share a unified inventory, improving overall stock availability.
#Question
What does the term 'perpetual inventory' mean?
A.Fixed long-term inventory levels
B.Inventory that isn't monitored
C.Continuous updating of inventory records
D.Regularly scheduled stock checks
Correct Answer:
C
Perpetual inventory refers to a method of inventory management that involves continuously updating inventory records in real-time as transactions occur.
316-1z0-519: Oracle EBS R12.1 Inventory Essentials
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