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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:

You are moving items from locator A to locator B within the same Inventory organization. Which two types of inventory transactions are required? (Choose two.)

A. Move Order

B. Locator transfer

C. Subinventory transfer

D. WIP component Issue

E. Miscellaneous Receipt

F. WIP assembly completion

G. Interorganization transfer direct

Correct Answer: AC

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 three statements are true about ABC Analysis and cycle count Classes? (Choose three.)

A. The hit/miss% for the Class overrides the hit/miss% of the cycle count header.

B. The hit/miss% for the cycle count header overrides the hit/miss% of the Class.

C. An ABC Analysis can be compiled for a sub inventory that is defined as a non-quantity-tracked sub inventory.

D. An ABC Analysis can be compiled for nonasset (expense) subinventories for which quantities are tracked.

E. In ABC Analysis, a quantity variance must always be submitted for approval, regardless of the tolerance levels

F. Positive and negative tolerances can be entered for each class, which will override the tolerance at the cycle count header level

Correct Answer: ADF

Question 5:

Your client has inventory organizations that belong to different operating units. All Items are manufactured in one operating unit and shipped to distribution warehouses that belong to other operating units. On an exception basis, transfers may

be arranged between distribution warehouses in different operating units.

All transfers between operating units are at the shipping organization\’s standard cost plus a transfer charge percentage.

Identify three inventory setup steps that are required for allowing the receiving inventory organization to correctly process receipts from inventory organizations belonging to another operating unit. (Choose three.)

A. Define an Intercompany Price List.

B. Define the correct Unit of Measure conversions for Dual UOM.

C. Define Intercompany Relations for each pair of operating units.

D. Define a separate Item Master Organization for each operating unit.

E. Define Receiving Options for each inventory organization in each operating unit.

F. Define Shipping Networks for each pair of shipping and receiving inventory organizations.

G. Ensure that the Receiving Options are uniform for ail inventory organizations in each operating unit.

Correct Answer: CEF

Question 6:

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 7:

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 8:

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 9:

An Item has its lot Control attribute set to Full Control.

The Active material status does not have any transaction types related to lot control enabled for material status control, this status is assigned to all lot numbers associated with the item.

The subinventory where the Item\’s lot numbers are all located also has the Active material status.

How will the application respond when a user tries to submit a subinventory transfer transaction?

A. The transaction will be accepted.

B. An error message will be generated.

C. The transaction will be accepted, but will be registered as a transfer to and from the same subinventory.

D. The transaction will be accepted, but the item cost update will have to be processed separately by the user.

Correct Answer: A

Question 10:

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

Question 11:

What is the impact of setting the profile option INV: Override Neg for Backflush = Yes?

A. It would not allow inventory to be driven negative.

B. Back flush transactions would drive inventory negative.

C. Back flush transactions would not drive inventory negative.

D. Back flush and inventory transactions would drive inventory negative.

E. Back flush and inventory transactions would not drive inventory negative.

F. It would permit the driving of on-hand inventory negative for miscellaneous issue transactions.

Correct Answer: B

Question 12:

You and your client determined that forecasting methods included with inventory will be sufficient to meet the client\’s needs.

You and the customer have decided to use Focus Forecasting to begin with and move to Exponential Smoothing after one year.

Along the way, your customer noticed some definite trends in demand and has requested your help to re-evaluate the forecasting method.

What do you recommend as a forecasting method? What additional information is needed, if any?

A. Focus Forecasting

B. Exponential Smoothing

C. Exponential Smoothing with Trend Enhanced Forecasting, Alpha and Beta Coefficients

D. Exponential Smoothing with Season Enhanced Forecasting, Alpha and Beta Coefficients

E. Exponential Smoothing with Season Enhanced Forecasting, Alpha and Gamma Coefficients

Correct Answer: C

Question 13:

ABC Inc. is a semiconductor manufacturing organization. They have all possible inventory controls items.

Which controls are validated on subinventory transfer transactions?


Lot control


Locator control


Serial Number control


Revision Quantity control


Subinventory and locator restrictions for specific items

A. 1

B. 1, 3, and 5

C. 1, 2, and 3

D. 1 through 5

E. 1, 2, 3, and 5

F. 1, 2, 3, and 4

Correct Answer: E

Question 14:

Vision Corporation is a semiconductor discrete manufacturing organization; it has its own manufacturing and distribution centers located globally.

It has this operating units:

US – USA operating unit CAN – Canadian operating unit UK – UK operating unit MX – Mexican operating unit IND- India operating unit SPA -Spain operating unit FRA – France operating unit NL – Netherlands operating Unit GER -Germany operating unit

These are the inventory organizations that exist in each operating unit: Inventory Org – Operating unit

VC (Master Org)-US US1 (Child Org)- US US2 (Child Org)-us CA1 (Child Org)-CAN MXl (Child Org)-MX INI (Child Org)-IND SP1 (Child Org)-SPA FR1 (Child Org)-FRA NLl (Child Org)- NL GEl (Child Org)-GER

Which two statements are true? (Choose two.)

A. Master Organization VC cannot be shared across operating units.

B. Items cannot be assigned to inventory organizations across operating units.

C. All inventory organizations do not need to be in the same operating unit to assign items.

D. You can define an item in INI inventory organization and assign it to GEl inventory organization

E. Items defined in VC organization can be assigned to US1, US2, NLl, and MXl inventory organizations.

Correct Answer: CE

Question 15:

Which two statements apply to a Physical Inventory Tag as defined by Inventory? (Choose two.)

A. Physical Inventory Tags cannot be bar coded.

B. It can contain a count for a group of a given Item.

C. It is produced and printed by the Generate Physical Inventory Tags function.

D. It is unique for every stock locator/item/lot number/serial number combination.

E. It is used to indicate to the warehouse staff that a count has been recorded for that location, so that a duplicate count is not performed.

Correct Answer: BD

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