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Question 1:

Which three statements are true about ABC analysis? (Choose three.)

A. the ABC class is an Item attribute.

B. There can be only three classes A, B, and C.

C. an ABC class must be assigned to at least one ABC group.

D. ABC classes can be used to group Items for planning purposes.

E. ABC classes can be used to identify the value groupings to which your Items belong.

Correct Answer: CDE

Question 2:

What two conditions prevent you from reserving the Inventory? (Choose two.)

A. The inventory module is installed as Shared.

B. The items have a nonreservable material status.

C. The Inventory is in a Standard Cost inventory organization.

D. The Inventory is in an Average Cost inventory organization.

E. The reservation will cause the on-hand quantity to be negative.

Correct Answer: BE

Question 3:

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 asco products.

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.

Correct Answer: D

Question 4:

Which two functional areas have default category sets? (Choose two.)

A. Planning, Engineering, Costing

B. Purchasing, Payables, Inventory

C. Inventory, Purchasing, Bill of Materials

D. Order Management, Inventory, Purchasing

E. Inventory, Bill of Materials, Work in Process

F. Planning, Order Management, General Ledger

G. Order Management, Inventory, Work in Process

Correct Answer: AD

Question 5:

Beyond the shelf life days, active lots become expired lots. Expired lots______.

A. Can be reserved

B. Are not allowed to do subinventory transfer

C. Are not included in Inventory valuation reports

D. Cannot be transacted and included in on-hand quantities

E. Are not included in cycle and physical counting adjustments

F. Are not considered as on-hand supply for min-max and re-order point planning

Correct Answer: F

Question 6:

ABC Company uses serial numbers for the following transactions:

1.Purchase order receipt


Miscellaneous receipt


Account alias receipt

The company wants to reuse the same serial numbers for work order completion transactions. Which setup would allow it to reuse the same serial numbers?

A. INV: Validate Returned Serial: No

B. INV: Validate Returned Serial: Yes

C. INV: Restrict Receipt of Serials: No

D. INV: Restrict Receipt of Serials: Yes

E. INV: Validate Returned Lot: Yes and INV: Validate Returned Serial: No

F. INV: Restrict Receipt of Serials: Yes and INV: Validate Returned Serial: No

G. INV: Restrict Receipt of Serials: Yes and INV: Validate Returned Serial: Yes

Correct Answer: C

Question 7:

What is the correct sequence when defining units of measure (UOM)?

A. UOM Class, UOM, UOM Conversions

B. UOM Class, UOM Conversions, UOM

C. UOM Conversions, UOM Class, UOM

D. UOM Conversions, UOM, UOM Class

E. UOM, UOM Class, UOM Conversions

Correct Answer: A

Question 8:

Which three statements are true about the item master? (Choose three.)

A. It is possible to copy items across item master organizations.

B. The item master organization is the centralized repository for ail items in different organizations.

C. It is possible to associate items in one item master organization with another item master organization.

D. When an attribute control is set at the item master level, updates are not allowed at the item or organization level.

E. There is no functional or technical difference between the item master organization and other organizations while transacting on an item.

F. When an attribute control is set at the item master level, updates can still be made at the item or organization level but these updates would not propagate back up to the item master level.

Correct Answer: BDE

Question 9:

Which three statements are true regarding Inventory replenishment methods? (Choose three.)

A. Min-max planning considers order cost.

B. Min-max planning considers carrying cost.

C. Reorder point planning considers order cost.

D. Reorder point planning considers replenishment lead time.

E. Min-max planning can be performed at the sub inventory level.

F. When an item is defined, both reorder point planning and min-max planning can be specified to Place limits on the calculated reorder point.

Correct Answer: CDE

Question 10:

Company XYZ manufactures three different types of PC monitors.

Type 1 is a unique requirement for the local college called Northern College. Shipments of Type 1 to other customers are not allowed. This Item is stored only in a subinventory called MODEL 1.

Other models are also stored in this same subinventory.

The other two types (Type 2 and Type 3) can be shipped to any other customer, including Northern College.

Which conditions are mandatory for the Picking rule (rule.to meet these requirements?

A. Transaction type of Sales Order. Rule assigned to Northern College.

B. Subinventory as MODEL 1. Rule assigned to customer Northern College.

C. Subinventory as MODEL 1. Rule assigned to Type 1, and customer as Northern College.

D. Subinventory as MODEL 1. Rule assigned to Type 1, and transaction type as Sales Order.

E. Subinventory as MODEL 1. Rule assigned to Type 1, transaction type as Sales Order, and customer Northern College.

Correct Answer: E

Question 11:

Select the true statement about Material Status Control.

A. The profile option “IMV: Default Item Status” must be set to Active at the site level to enforce Material Status Control.

B. The profile option “INV: Material Status Support” must be set to Yes at the site level to enforce Material Status Control.

C. The profile option “INV: Transaction Reasons Security” must be set to Yes at the site level to enforce Material Status Control.

D. The profile option “INV: Allow Expense to Asset Transfer” must be set to Yes at the application level to enforce Material Status Control.

Correct Answer: B

Question 12:

The warehouse has received new stock from an internal distribution warehouse.

Which two receiving transactions can be used to put stock into the warehouse\’s inventory using the Intransit Inventory? (Choose two.)

A. Direct Receipt

B. Standard Receipt and Delivery

C. Inter organization Direct Receipt

D. Inter organization Receipt and Delivery

E. Inter organization Miscellaneous Receipt

Correct Answer: CD

Question 13:

After several cycle counts have been performed, the client wants to identify those items that consistently require adjustment.

Which report will help the client identify those items?

A. Cycle Count Listing

B. Cycle Count Hit/Miss Analysis

C. Cycle Count Unscheduled Items Report

D. Cycle Count Entries and Adjustments Report

Correct Answer: D

Question 14:

For performing an ABC analysis, you need to define ABC Compile, ABC Classes, and ABC Assignment Groups. Identify two correct actions. (Choose two.)

A. Link an ABC Group to an ABC Compile.

B. Link an ABC Compile to an ABC Group.

C. Assign an ABC Group to an ABC Class.

D. Assign an ABC Class to an ABC Group.

E. Enable an ABC Group in Subinventories.

Correct Answer: BD

Question 15:

Which statement is true regarding inventory transactions?

A. Transaction reasons can be used in all transaction forms.

B. Work in Process would not affect inventory transactions.

C. Inventory adjustments are not part of inventory transactions.

D. You can designate, by transaction type, which transaction reasons are available.

E. You must create at least one user-defined transaction reason for each inventory organization.

Correct Answer: A

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