Oracle 1Z0-1073-25 Online Practice Questions and Exam Preparation

Oracle 1Z0-1073-25 Online Questions & Answers

• Question 1:

  Back to Back fulfillment

  Overview of Back-to-Back Fulfillment

  The back-to-back fulfillment process is one in which specific sales order demand triggers supply creation, and a link is established between the sales order and the supply.

  Note: Back-to-back flow is currently supported only for discrete manufacturing.

  The following figure provides a high-level flow diagram showing the back-to-back supply creation and fulfillment process flow.

  

  Back-to-back fulfillment is where supply is procured and then received at a warehouse only after an order is placed.

  The supply is reserved against a sales order until shipping.

  This process provides support to create and link supply after a sales order is entered and scheduled, allowing you to reduce your inventory while maintaining the ability to respond to customer demands.

  You create supply for a back-to-back order using one or more of the following back-to-back flows:

  1. Buy: Procurement from an external supplier.

  2. Make: Production in an internal manufacturing facility (includes in-house manufacturing and contract manufacturing).

  3. Transfer: Transfer from another warehouse.

  4. On hand: Reservation of on-hand supply in the fulfillment organization.

  Note: For information about back-to-back flows for contract manufacturing, see the Implementing Contract Manufacturing chapter in this guide.

  After the supply is received into the fulfillment warehouse, the back-to-back order is ready for shipment to the customer.

  See the Explanation for the complete solution.
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  Explanation

  Back-to-Back Fulfillment in Oracle Inventory Cloud

  Back-to-back fulfillment in Oracle Inventory Cloud is a supply chain process where supply is created only after a sales order is placed. This process links the demand (customer sales order) directly to the supply (procurement, manufacturing, transfer, or existing stock), ensuring efficient inventory management while meeting customer demands. Below is a detailed step-by-step explanation of the back-to-back fulfillment process.

  1. Overview of Back-to-Back Fulfillment Process

  The back-to-back (B2B) fulfillment process ensures that supply is created only when a customer order is received.

  Supply is specifically reserved for the sales order until shipping.

  This process helps reduce excess inventory while maintaining responsiveness to customer needs.

  It supports four fulfillment strategies: Buy, Make, Transfer, and On Hand Reservation . Back-to-back fulfillment is mainly used in discrete manufacturing environments.

  2. Step-by-Step Back-to-Back Fulfillment Process in Oracle Inventory Cloud

  The back-to-back fulfillment process consists of the following key steps:

  Step 1: Process Sales Order

  The sales order is created in Oracle Order Management .

  The order is validated for correctness (items, quantities, prices, etc.).

  The order is scheduled, and the system checks if on-hand inventory is available.

  If no inventory is available, Oracle Supply Chain Orchestration initiates a back-to-back fulfillment request.

  Step 2: Determine Supply Sources

  Oracle Supply Chain Orchestration (SCO) determines the best supply source based on predefined rules and sourcing strategies.

  The system evaluates the following supply options:

  Buy: Procurement from an external supplier.

  Make: Internal manufacturing or contract manufacturing.

  Transfer: Movement of inventory from another warehouse or distribution center.

  On Hand: Direct reservation of existing inventory.

  Step 3: Create and Manage the Supply Order

  A supply order is generated in Oracle Supply Chain Orchestration .

  The order is assigned to the appropriate fulfillment method:

  Buy Order: A purchase requisition is created in Oracle Procurement Cloud , and the supplier provides the required goods.

  Make Order: A work order is created in Oracle Manufacturing Cloud , and production begins.

  Transfer Order: A transfer request is initiated in Oracle Inventory Management , moving stock from another warehouse.

  On-Hand Reservation: If stock is available, it is reserved against the sales order.

  Oracle monitors the progress of the supply order until completion.

  Step 4: Receive and Consolidate Supply in Warehouse

  Once supply is procured, manufactured, or transferred, it is received in the fulfillment warehouse.

  If it is a purchased item, a receipt is created in Oracle Receiving .

  If it is a manufactured item, the work order is completed, and inventory is updated.

  The system ensures that the received inventory is linked to the original sales order.

  Step 5: Ship to Customer

  The sales order is released for fulfillment.

  A Pick Release process is initiated in Oracle Inventory Cloud to allocate stock.

  The order is picked, packed, and shipped using Oracle Shipping Execution .

  A shipping confirmation is generated, and an invoice is created in Oracle Receivables .

  The sales order is marked as complete, and the supply order is closed.

  3. Detailed

  Explanation of Back-to-Back Fulfillment Flows

  1.Buy Flow (Procurement)

  If the supply is sourced externally, the system generates a purchase order in Oracle Procurement Cloud.

  The supplier delivers the goods, which are received in Oracle Receiving.

  The inventory is updated, and the order is prepared for shipment.

  The sales order is fulfilled once the goods arrive.

  2.Make Flow (Manufacturing)

  If the item is manufactured internally, a work order is created in Oracle Manufacturing Cloud.

  Production is executed, and the finished product is stored in inventory.

  The system reserves the item against the sales order.

  The order is fulfilled when the product is available.

  3.Transfer Flow (Warehouse Transfer)

  If the item is available in another warehouse, a transfer order is generated in Oracle Inventory Cloud.

  The inventory is moved to the fulfillment warehouse.

  Once received, the inventory is reserved and prepared for shipment.

  The sales order is completed upon shipment.

  4.On Hand Flow (Inventory Reservation)

  If the item is available in stock, the system directly reserves it.

  The order moves to the shipping phase without additional procurement or manufacturing steps.

  The pick, pack, and ship process is executed, and the order is fulfilled.

  4.Key Benefits of Back-to-Back Fulfillment in Oracle Inventory Cloud

  # Reduced Inventory Holding Costs Stock is only procured, manufactured, or transferred when needed.# Improved Order Fulfillment Efficiency Orders are linked directly to supply, reducing delays.# Better Customer Satisfaction Customers receive products faster with reduced stockouts.# Automated Supply Chain Coordination Oracle Cloud applications ensure seamless integration between order management, procurement, manufacturing, and inventory.# Flexibility in Sourcing Users can choose between procurement, manufacturing, transfer, or existing stock to fulfill demand efficiently.

  5.Oracle Cloud Modules Involved in Back-to-Back Fulfillment A screenshot of a computer AI-generated content may be incorrect.

  6.Example Use Case: Back-to-Back Fulfillment in Action

  

  Scenario:A customer places an order for 100 units of Item XYZ , but there is no stock available in the warehouse.

  Solution:

  The system checks stock availability and identifies that back-to-back fulfillment is required.

  The sourcing rules determine that procurement from an external supplier is the best option.

  A purchase requisition is created in Oracle Procurement Cloud.

  The supplier delivers the items, and they are received into inventory.

  The inventory is reserved against the sales order.

  The shipping process is initiated, and the order is delivered to the customer.

  The sales order and supply order are closed.

• Question 2:

  Back-to-Back Supply Creation On-Hand Flow

  The back-to-back on-hand available (ATP) flow is the simplest in terms of the number of steps that constitute the flow. This flow occurs where on hand supply is available in the fulfillment warehouse for the ordered back-to-back item at the time of order promising. Because on-hand goods already exist in the form of on hand, Oracle Supply Chain Orchestration directly sends a request to reserve the on hand quantity against the back-to-back sales order. You can ship the sales order immediately after the reservation is created. The following figure shows the back-to-back supply creation on-hand flow.

  

  See the Explanation for the complete solution.
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  Explanation

  Back-to-Back Supply Creation: On-Hand Flow in Oracle Cloud

  1.Overview of Back-to-Back On-Hand Flow

  The Back-to-Back On-Hand Flow is the simplest and fastest fulfillment method in Oracle Cloud because the required stock is already available in the fulfillment warehouse at the time of sales order entry.

  Unlike Buy, Make, or Transfer Flows , no additional supply is created. Instead, Oracle Supply Chain Orchestration (SCO) directly reserves the available inventory against the sales order, making it ready for immediate shipment .

  2.Step-by-Step Back-to-Back On-Hand Flow Process

  Below is a detailed step-by-step breakdown of the Back-to-Back On-Hand Flow using Oracle Fusion Cloud applications.

  Step 1: Enter and Schedule Sales Order

  The customer places a sales order in Oracle Order Management .

  The system checks inventory availability in Oracle Inventory Cloud .

  Oracle Global Order Promising (GOP) determines that the required stock is already available in the fulfillment warehouse.

  No procurement, manufacturing, or warehouse transfers are needed.

  The sales order is scheduled immediately for fulfillment.

  # System Action: The system identifies that on-hand stock is available and proceeds to reservation.

  Step 2: Reserve Available Inventory

  Oracle Supply Chain Orchestration (SCO) reserves the available stock against the back-to-back sales order.

  The system ensures that this stock is allocated only to this order , preventing other orders from using it.

  # System Action: The system reserves the required quantity for the sales order.

  Step 3: Ship the Sales Order

  The order moves directly to shipping in Oracle Inventory Cloud .

  The warehouse team picks, packs, and ships the goods using Oracle Shipping Execution .

  An invoice is generated in Oracle Receivables .

  The sales order is closed after shipment.

  # Final Action: The system completes the order and ships it to the customer.

  3.Oracle Fusion Cloud Modules Involved in On-Hand Flow A screenshot of a computer AI-generated content may be incorrect.

  4.Benefits of Back-to-Back On-Hand Flow

  # Fastest Fulfillment Process ?No need for procurement, manufacturing, or transfers.# Minimizes Order Processing Time ?Orders can be shipped immediately after reservation.# Eliminates Additional Costs ?No purchase orders, work orders, or transfers required.# Ensures Inventory Optimization ?Uses available stock efficiently.# Improves Customer Satisfaction ?Quick shipping and fulfillment.

  5.Real-World Use Case

  Scenario: Electronics Retailer Fulfilling a Popular Smartphone Order

  A retailer sells Smartphone XYZ and has 100 units in stock at its fulfillment warehouse.

  Process Flow:

  A customer places an order for 10 units of Smartphone XYZ .

  

  Oracle Global Order Promising (GOP) identifies that stock is available .

  Oracle Supply Chain Orchestration (SCO) reserves 10 units against the sales order.

  The warehouse team picks, packs, and ships the smartphones.

  The customer receives the order, and the system closes the sales order .

  # Result: The order is fulfilled immediately without additional supply creation.

• Question 3:

  Back-to-Back Supply Creation Make Flow

  

  The supply document for a back-to-back make flow is a work order. As soon as the work order is created in Oracle Fusion Cloud Manufacturing, it's tied to the back-to-back sales order in the form of a reservation in inventory. The work order

  goes through the regular production process and the work order completion transaction issues finished goods to inventory.

  Note: Back-to-back flow is currently supported for only discrete manufacturing.

  The following figure shows the back-to-back supply creation make flow.

  Back-to-Back Supply Creation Transfer Flow

  

  The supply document for a back-to-back transfer flow is a transfer order. The transfer order is created in inventory and reserved against the back-to-back sales order. When the transfer order is ready to be fulfilled, an interorganization shipment moves goods from the source organization to the destination organization. An interorganization receipt in the destination organization (which is also the fulfillment warehouse on the back- to-back sales order) creates on hand to fulfill the sales order.

  The following figure shows the back-to-back supply creation transfer flow.

  See the Explanation for the complete solution.
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  Explanation

  Back-to-Back Supply Creation Flows: Make and Transfer in Oracle Cloud

  1. Overview of Back-to-Back Supply Creation Flows

  Back-to-back (B2B) supply creation flows in Oracle Fusion Cloud allow businesses to generate supply only when a sales order is placed . The system creates supply documents dynamically based on sourcing rules and executes supply

  fulfillment through Manufacturing (Make Flow) or Inventory Transfer (Transfer Flow).

  Each flow follows these key steps:

  Sales Order Entry and Scheduling A customer places an order that requires supply creation.

  Supply Order Generation The system determines whether to manufacture or transfer stock.

  Supply Execution The supply is produced (Make Flow) or transferred from another warehouse (Transfer Flow).

  Receiving and Reservation The supply is received and linked to the sales order.

  Order Fulfillment The sales order is shipped to the customer.

  2. Back-to-Back Supply Creation: Make Flow (Manufacturing-Based Fulfillment)

  The Make Flow is used when the item must be manufactured in-house because it is not available in stock or through procurement. The system creates a Work Order (WO) in Oracle Manufacturing Cloud and ties it to the sales order.

  Step-by-Step Make Flow Process

  Below is the step-by-step breakdown of the Back-to-Back Make Flow using Oracle Fusion Cloud applications.

  Step 1: Enter and Schedule Sales Order

  The customer places an order in Oracle Order Management .

  The system checks stock availability in Oracle Inventory Cloud .

  Since no stock is available, Oracle Supply Chain Orchestration (SCO) triggers a supply request.

  Oracle Global Order Promising (GOP) determines that the item must be manufactured.

  The sales order is scheduled for back-to-back fulfillment.

  # System Action: The system marks the sales order for manufacturing and creates a supply order.

  Step 2: Create and Request Work Order

  Oracle Supply Chain Orchestration (SCO) generates a Supply Order .

  The system determines that a Work Order (WO) is needed.

  A Work Order (WO) is created in Oracle Manufacturing Cloud .

  The Work Order is tied to the sales order to ensure the finished goods are allocated for this order only.

  # System Action: The system creates a Work Order (WO) in Oracle Manufacturing.

  Step 3: Execute Manufacturing Process

  The Work Order goes through the standard production process .

  Raw materials are issued from inventory.

  Production activities are completed.

  The final product is reported as complete in Oracle Manufacturing Cloud .

  The Work Order is completed , and the finished goods are transferred to Oracle Inventory Cloud .

  # System Action: The system marks the Work Order as complete and updates inventory.

  Step 4: Reserve and Ship the Sales Order

  The system reserves the manufactured stock against the sales order.

  The order is picked, packed, and shipped from the warehouse.

  Oracle Shipping Execution updates the order status.

  An invoice is generated in Oracle Receivables .

  The sales order is closed .

  # Final Action: The system completes the order and ships it to the customer.

  Oracle Fusion Cloud Modules Involved in Make Flow

  A screenshot of a computer AI-generated content may be incorrect.

  

• Question 4:

  A customer defines min-max parameters with the following:

  -Minimum Quantity = 50

  -Maximum Quantity = 300

  -On-Hand = 40

  -Reserved = 10

  What is the reorder quantity calculated when running the Min-Max Planning Report?

  A. 300
  B. 260
  C. 320
  D. 270
  B. 260

• Question 5:

  Which replenishment source types are available for PAR replenishment?

  A. Interorganization Transfer
  B. Purchase Requisition
  C. Work Order
  D. Movement Request
  E. Miscellaneous Receipt
  A. Interorganization Transfer
  B. Purchase Requisition
  D. Movement Request

• Question 6:

  What happens when "Accrue at Receipt" is enabled for supplier receipts?

  A. The expense and accrual entries are created at the time of receipt
  B. The accrual entry is deferred until invoice creation
  C. The receipt transaction is recorded without accounting
  D. The payable is created without expense recognition
  A. The expense and accrual entries are created at the time of receipt

• Question 7:

  A user notices that shipment numbers are not being generated for a direct interorganization transfer. What is the cause?

  A. Direct transfers do not require shipment numbers
  B. Shipment numbering sequence not assigned
  C. Source subinventory not enabled
  D. Receiving parameters not configured
  A. Direct transfers do not require shipment numbers

• Question 8:

  Which three tasks are part of Supply Chain Orchestration setup?

  A. Manage Supply Order Defaulting and Enrichment Rules
  B. Manage Supply Orchestration Lookups
  C. Manage Supply Order Policies
  D. Manage Supply Orchestration Attachment Categories
  E. Manage Demand Execution Document Creation Rules
  A. Manage Supply Order Defaulting and Enrichment Rules
  B. Manage Supply Orchestration Lookups
  D. Manage Supply Orchestration Attachment Categories

• Question 9:

  Which transaction type should be used to record items returned from a subinventory to the main warehouse?

  A. Subinventory Transfer
  B. Movement Request
  C. Miscellaneous Issue
  D. Locator Transfer
  A. Subinventory Transfer

• Question 10:

  A customer needs to ensure goods are quality-checked before being received into inventory. Which configuration supports this requirement?

  A. Receipt Routing = Inspection
  B. Destination Type = Expense
  C. Receipt Routing = Standard
  D. Shipment Type = In-Transit
  A. Receipt Routing = Inspection