1Z0-900 · Question #137
Your company is an automobile spares manufacturing organization, which follows a discrete process. It has its own manufacturing and distribution centers located globally. It has these business…
The correct answers are A and D, based on Oracle Fusion SCM inventory organization principles. Why A is correct: In Oracle Fusion SCM, items can be assigned to inventory organizations across different business units - there is no restriction requiring all organizations to share…
Question
Your company is an automobile spares manufacturing organization, which follows a discrete process. It has its own manufacturing and distribution centers located globally. It has these business units:
US - USA business unit CAN - Canadian business unit UK - UK business unit MX - Mexican business unit IND - India business unit SPA - Spain business unit FRA - France business unit NL - Netherlands business unit GER - Germany business unit These are the inventory organizations that exist in each business unit:
Which two statements are true?
Options
- AAll inventory organizations do not need to be in the same business unit to assign items.
- BItem organizations are also supported to serve as inventory organizations.
- CItems cannot be assigned to inventory organizations across business units.
- DItems defined in the GM organization can be assigned to US1, US2, NL1, and MX1 inventory
- EOperational Attributes can be controlled only at the Master Level.
- FYou can define an item in the IN1 inventory organization and assign it to the DE1 inventory
Explanation
The correct answers are A and D, based on Oracle Fusion SCM inventory organization principles.
Why A is correct: In Oracle Fusion SCM, items can be assigned to inventory organizations across different business units - there is no restriction requiring all organizations to share the same BU. This enables global item management across a multinational structure like the one described.
Why D is correct: The "GM" organization functions as a global master organization. Items defined at the master org level can be assigned down to any child inventory organization - including US1, US2, NL1, and MX1 - regardless of which business unit they belong to, which directly illustrates option A's principle in practice.
Why the distractors are wrong:
- B is false - item organizations and inventory organizations are architecturally distinct in Fusion SCM; item orgs manage definitions but cannot transact or hold stock.
- C is the direct opposite of the correct behavior - cross-BU assignment is fully supported.
- E is false - operational attributes (e.g., picking rules, costing method) can be overridden at the individual organization level, not just the master level.
- F is false - you define items at the master organization level, not at a child org like IN1; IN1 is a transactional org, not a defining one, so you cannot use it as the source for cross-org assignment.
Memory tip: Think of the master org (GM) as the "template factory" - it stamps out item definitions that any inventory org worldwide can adopt. Child orgs receive, not create.
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