Oracle Exam 1Z0-1163-1 Topic 8 Question 3 Discussion

Inventory Management (D) in Oracle Fusion Cloud SCM ensures optimal inventory levels by tracking stock movement---receipts, transfers, and consumption---and maintaining availability data across warehouses. For example, if stock drops below a reorder point (e.g., 100 units), it triggers replenishment to avoid stockouts while preventing overstocking (e.g., holding 1,000 units when demand is 200). Option A (Supplier Qualification) evaluates suppliers, not inventory levels. Option B (Manufacturing Execution) tracks production, not overall stock. Option C (Cost Accounting) analyzes costs, not physical stock movement. Inventory Management balances service levels with cost efficiency, using real-time data to adjust stock dynamically, critical for operational success and customer satisfaction.