Inventory Management Cloud 1z0-1073-24 Release Date

Oracle Inventory Cloud 2024 Implementation Professional Questions and Answers

Question 5

How Back-to-Back Fulfillment Works

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

An organization procures goods from an internal or external supplier or source to a specific warehouse from where you can combine those goods with others to create a single shipment to the customer.

Back-to-back supply processes are similar to regular supply processes that deliver supply to a warehouse except for one difference; the back-to-back supply is always reserved to an order management fulfillment line.

At a high level, you can think of back-to-back fulfillment as a three-step process:

1.Creation of a customer sales order (source of demand).

2.Creation and fulfillment of supply document (source of supply) to the fulfillment warehouse.

3.Shipment of sales order from the fulfillment warehouse to the customer.

However, the back-to-back flow is truly a highly integrated process flow involving several Oracle Fusion Cloud applications. The following figure shows the back-to-back process flow in detail. An explanation for each number follows the figure.

Options:

Answer:

See the Explanation for the complete solution.

Explanation:

Back-to-Back Fulfillment: Detailed Simulation in Oracle Cloud

Introduction

Back-to-back (B2B) fulfillment is a process where supply is created only after a sales order is placed. The supply is specifically reserved for that order and remains linked until fulfillment is completed. Unlike regular inventory processes, back-to-back fulfillment ensures that supply is directly tied to a customer demand, optimizing inventory management while maintaining customer satisfaction.

Key Oracle Fusion Cloud Applications Involved

Back-to-back fulfillment integrates multiple Oracle Fusion Cloud applications, including:

Oracle Order Management (for sales order processing)

Oracle Procurement (for external supply sourcing)

Oracle Manufacturing (for in-house production)

Oracle Inventory Management (for warehouse operations and fulfillment)

Oracle Supply Chain Orchestration (for coordinating supply processes)

Oracle Shipping Execution (for shipping to customers)

Step-by-Step Back-to-Back Fulfillment Simulation

Step 1: Creation of a Customer Sales Order (Source of Demand)

A customer places an order for a product that is not available in stock.

The sales order is created in Oracle Order Management.

The system checks inventory availability in Oracle Inventory Cloud.

Since stock is unavailable, the Supply Chain Orchestration (SCO) module triggers a supply request.

The system determines the best supply source based on sourcing rules (Buy, Make, Transfer, or On-Hand Reservation).

The sales order line is marked for back-to-back fulfillment, and a supply order is generated.

✅ System Action: The system reserves the sales order and waits for supply to be created.

Step 2: Creation and Fulfillment of Supply (Source of Supply to Warehouse)

Once the supply order is created, the system initiates one of the following supply methods:

Option 1: Buy (Procurement from Supplier)

The system generates a Purchase Requisition in Oracle Procurement Cloud.

The requisition is converted into a Purchase Order (PO) and sent to an external supplier.

The supplier fulfills the order and ships the goods to the fulfillment warehouse.

The warehouse receives the items using Oracle Receiving.

Option 2: Make (Manufacturing in-house or contract manufacturing)

The system generates a Work Order in Oracle Manufacturing Cloud.

The work order is scheduled, and production starts.

Once manufacturing is complete, the finished goods are moved to inventory.

Option 3: Transfer (Move from another warehouse or distribution center)

The system creates a Transfer Order in Oracle Inventory Cloud.

Stock is transferred from a different warehouse or location.

Once received, inventory is updated in the fulfillment warehouse.

Option 4: On-Hand (Reserve Existing Inventory)

If stock is available in the fulfillment warehouse, the system directly reserves the items.

No additional supply request is needed.

✅ System Action: The system updates the sales order and marks it ready for fulfillment once supply is received.

Step 3: Shipment of Sales Order to the Customer

The order is released for picking in Oracle Inventory Cloud.

The picking process begins, and items are packed for shipping.

The shipping team processes the order using Oracle Shipping Execution.

A shipment confirmation is generated, and the order is shipped to the customer.

An invoice is created in Oracle Receivables.

The system marks the sales order as fulfilled and closed.

✅ Final Action: The customer receives the order, and the back-to-back fulfillment process is completed.

Key Benefits of Back-to-Back Fulfillment in Oracle Cloud

✔ Optimized Inventory Management – Stock is acquired only when needed, reducing carrying costs.✔ Improved Order Fulfillment Efficiency – Automated supply chain orchestration ensures smooth operations.✔ Enhanced Customer Satisfaction – Orders are processed quickly, reducing delays and backorders.✔ Integrated Supply Chain Execution – Oracle Fusion applications work together seamlessly.✔ Flexibility in Sourcing – Businesses can choose procurement, manufacturing, transfers, or reservations based on demand.

Question 6

Back-to-Back Supply Creation Flows

You can set up Oracle Fusion Cloud applications that support back-to-back fulfillment to trigger supply creations flows (buy, make, transfer, and on hand) after a sales order is entered and scheduled.

Each variant of the back-to-back flow differs in the supply document that's created and the supply execution application in which the document is created. Depending on the source of the item, supply is provided from manufacturing, procurement, or inventory. Then, after the supply is received into the fulfillment warehouse, the back-to-back order is ready for shipment to your customer.

The following table describes the supply creation flows and associated supply document supported for each flow when using back-to-back fulfillment.

Back-to-Back Supply Creation Buy Flow

The supply document for a back-to-back buy flow is a purchase order. Based on supply recommendations from Oracle Global Order Promising, a purchase order is created and reserved against the sales order. When the purchase order is received by the supplier, on hand is created to ship out the back-to-back sales order.

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

Options:

Answer:

See the Explanation for the complete solution.

Explanation:

Back-to-Back Supply Creation Flows in Oracle Cloud

Back-to-back (B2B) fulfillment in Oracle Fusion Cloud allows organizations to trigger supply creation (Buy, Make, Transfer, or On-Hand Reservation) after a sales order is entered and scheduled. The system dynamically generates supply documents depending on the source of the item and executes supply fulfillment through Oracle Procurement, Manufacturing, or Inventory Management.

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

Each back-to-back flow follows these key steps:

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

Supply Order Generation – The system determines the best supply source based on predefined sourcing rules.

Supply Execution – The supply is created using procurement (Buy), manufacturing (Make), transfer (Transfer), or existing stock (On-Hand).

Receiving & 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 Buy Flow (Procurement-Based Fulfillment)

The Buy Flow is used when the required item is procured from an external supplier because it is not available in stock or another warehouse.

Step-by-Step Buy Flow Process

Below is the step-by-step breakdown of the Back-to-Back Buy Flow with Oracle Fusion applications involved:

Step 1: Initiate Back-to-Back Sales Order

The customer places a sales order in Oracle Order Management.

The system checks stock availability in Oracle Inventory Cloud.

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

Oracle Global Order Promising (GOP) determines procurement as the best supply source.

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

✅ System Action: The system marks the sales order for procurement and creates a supply order.

Step 2: Create Supply Order

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

The system determines that a Purchase Order (PO) is needed.

A Purchase Requisition is created in Oracle Procurement Cloud.

✅ System Action: The system sends a request for procurement.

Step 3: Request Purchase Order (PO)

Oracle Procurement Cloud converts the requisition into a Purchase Order (PO).

The PO is sent to the external supplier.

The PO is linked to the sales order, ensuring that supply is dedicated to fulfilling the order.

✅ System Action: The system creates a Purchase Order (PO) and tracks supplier delivery.

Step 4: Receive the Purchase Order (PO)

The supplier delivers the goods to the fulfillment warehouse.

The warehouse team receives the PO in Oracle Receiving.

The received inventory is updated in Oracle Inventory Cloud.

The supply is reserved against the back-to-back demand.

✅ System Action: The system marks the received supply as reserved for the sales order.

Step 5: Ship the Back-to-Back 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.

3. Oracle Fusion Cloud Applications Involved in Back-to-Back Buy Flow

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4. Benefits of the Back-to-Back Buy Flow

✔ Reduces Inventory Holding Costs – No need to stock large quantities in advance.✔ Ensures Order-Specific Procurement – Every sales order is directly linked to supply.✔ Automates Procurement & Order Processing – Seamless integration between Oracle modules.✔ Enhances Customer Satisfaction – Quick fulfillment by sourcing products efficiently.✔ Optimizes Supplier Collaboration – Real-time PO creation and tracking with suppliers.

5. Real-World Use Case

Scenario: Electronics Distributor Fulfilling a Large Order

A distributor selling high-end laptops does not keep them in stock but procures them from suppliers only when an order is placed.

Process Flow:

A corporate customer places an order for 50 laptops.

The system checks stock and finds no available inventory.

A Purchase Order is created in Oracle Procurement Cloud and sent to the supplier.

The supplier delivers the laptops to the warehouse.

The laptops are reserved against the sales order.

The laptops are shipped to the customer, and the invoice is generated.

✅ Result: The distributor minimizes inventory costs while fulfilling customer demand efficiently.

Question 7

Which two actions are possible on an expired lot?

Options:

Consider as on-hand for min-max planning.

Reserve for date beyond expiration date.

Include in physical inventory and tag entry. (*)

Include in cycle count. (*)

Question 8

Which two purposes can be achieved by using an item organization?

Options:

Inventory tracking

Financial tracking

Sales catalog definition

Master organization definition

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Inventory Management Cloud 1z0-1073-24 Release Date

Oracle Inventory Cloud 2024 Implementation Professional Questions and Answers

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