Oracle E-Business Suite R12.1: Order Management Essentials — Question 10

Select three true statements about inventory reservations. (Choose three.)

Answer options

• A. A reservation is a link between a supply source and a demand source.
• B. For on-hand Inventory supply, there is only one type of reservation called high-level reservation.
• C. For on-hand inventory supply, there is only one type of reservation called low-level reservation.
• D. Reservations can be created only by Oracle applications or via forms. They cannot be imported from third-party applications.
• E. A reservation creates a permanent data link between a supply source and a demand source, and represents a guaranteed allotment of material to a specified demand source.
• F. Item reservations prevent the allocation of material you previously set aside for a sales order, account, account alias, inventory allotment, user-defined source, process batch components or, Oracle Complex Maintenance and Repair Overhaul work order components.
• G. Item reservations allow the allocation of material you previously set aside for a sales order, account, account alias, inventory allotment, user-defined source, process batch components or, Oracle Complex Maintenance and Repair Overhaul work order components as long as the quantity is not negative.

Correct answer: A, E, F

Explanation

The correct answers are A, E, and F because they accurately describe the nature and function of inventory reservations. Options B and C incorrectly state the types of reservations available for on-hand inventory, while option D is incorrect as it does not account for potential integrations with third-party applications.