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Latest Oracle Retail Merchandising Interview Questions for Deloitte

I am working in Oracle Retail applications like RMS, RPM, ReSA, ReIM, WMS. So I will share some common questions which is asked in different interviews. Deloitte mainly ask functional questions. Round 1 is always functional and round 2 is technical. For technical questions you can follow this link from my Blog. Deloitte Technical Questions
Let us jump to questions directly;

Oracle Retail Merchandising System

1. What is the difference between Unit Cost, Unit Retail and Selling Retail ?

Ans: Unit cost is that price at which any retailer buys items from a manufacturer (Generally Suppliers). If you query item_supplier, item_supp_country you will get to know the significance of unit cost. Unit cost never differs on ranging. It remain same.

Unit retail is that price which is decided by the retailer. Retailer adds  Markup cost and some other extra cost like external finishers to unit cost and that makes unit retail.

Selling retail is that price at which any item is sold at store (may be after promotion, price change, clearance price.)

Example: Unit Cost $100
              Unit Retail     = 200% of unit cost as markup price + unit cost
                                  = $300
              Selling Retail = 50% discount on unit retail
                                  = $150

Now you got that even selling at 50%, retailer makes 50% of profit. So never feel bad for retailer :)

2. Why do we need foundation data and can you list down some foundational data ?

Ans: Foundation data serves as basic foundation for starting any retail business. Without foundation data you will not be able to perform any transaction and if no transactions.... no money.. no business.. oops.

If you have opened any store for selling grocery at your locality. [A.K.A Raashan waale bhaiya or dukaandar ]. What are all the things you will need to make your business functional ?

You will need items to sell, you will need at least a store(can be e-commerce or brick and mortar). If you have plan to stock items, you will need a warehouse, we call it a Godown in local language. You need a supplier from where you buy item.

Then comes hierarchy. department of item, item class,you can further break down to subclass. They all needed for better management, reporting. If you have a chain of store in different cities, then you need organizational hierarchy also.

3. Give one example of Organisational Hierarchy and Merchandising Hierarchy.

Organisational Hierarchy: Company [comphead]--> Chain [chain] --> Area [area] --> Region [region] --> District [district] --> Store [store]
we can have maximum 6 level. Store always remains at last level and warehouse can be associated at any level. 

Merchandise Hierarchy: Company [comphead]--> Division [division] --> Group [group] --> Department [deps] --> Class [class] --> Sub Class [subclass]. we can have maximum 6 level.

4. At which level a retailer can assign Warehouse to the Organisational Hierarchy ?

Ans: Warehouse can be assign at any level of org hierarchy depending upon business structure and need. In case of India, if you have one store in every district, then you can set up warehouse at state capital level (Region). If you have multiple stores in a district, then you may need a warehouse at district level to fulfill inventory at stores. Hope you have understood.

5. What is Virtual Warehouse concept ?

Ans : Yeah its interesting. We have seen godown locally right. 
Now practically any retailer using oracle retail ERP, means retailer is a giant. And they always have big big warehouse. There are lots of doors, from where items are received.
We have many process inside warehouse. To move goods between different process like, receiving, put away, picking we have to keep goods at different location. We can't just say keep those at that corner. 

As per one of our Senior Mr Ramu Kunta has explained this as Virtual warehouse concept gives better visibility on the inventory within RMS. Virtual warehousing will be more useful/realized when retailer is operating in multiple channels i.e. 1. Brick and Motor (Physical stores) 2. E-commerce stores and only one physical warehouse is used to serve both these channels. Then we can create 2 virtual warehouses one for each channel. Channel ID is mandatory while creating virtual warehouse.
However some retailers use virtual warehouses as you mentioned in your answer. For example logically dividing the physical warehouse for receiving, shipping processes within the physical warehouse and another for returns (collect all store returns in one area within physical warehouse and do RTV from this location). Using virtual warehouses for these internal processes will make the inventory distribution within the physical warehouse a bit tricky because of RMS distribution logic.

We have to logically divide the entire physical warehouse area into different sections. There will be no physical divisions but logically or virtually it will be divided and maintained at system level. Like you have 4 rooms in your house but entire unit altogether is a house. Just like entire warehouse we call physical warehouse and virtual sections are virtual warehouse. 

Most interestingly, virtual warehouse are the stock holding location in system. So one physical warehouse can have one or more than one virtual warehouse associated with that. You can drill down warehouse table WH.

6. Can you explain some types of Items with real life example which you might have seen in super markets?

7. What is the transaction level of Items and why do we use 3rd level of item ?

8. What are UDAs and Differentiators?

9. What is the significance of supplier pack size ?

10. Explain Pack Items and how do we track its transactions ?

11. What is item Ranging and how this information is processed in RMS?

12. What is Item Reclassification (Explain Process)  and which tran code is posted when item reclassification occurs ?

13. Can you explain end to end process of Ordering ?

14. What are Transfers ? 

15. What are Allocations ?

16. Do you know inter company and intra company transfers?

17. Which tran code is posted when we receive a transfer shipment in RMS ?

18. what is SOH and In-transit quantity and what is the relation between them ?

19. Explain inventory Adjustment with batch details, reason codes and tran code.

20. What is Stock Count ?

21. How the transactions from Tran-data moves to further process and finally sent to Finance system ?

22. Why no tran code (transaction) get posted when we create PO, but tran code get posted when we receive the PO in RMS ?

As of now I have added these questions to Oracle Retail Merchandising System Interview questions. I will add more on it and I am adding answers gradually as I get time, just let me know in comments if you need more clarification or you have came across any questions for which you need answer. 

Questions for ReIM, ReSA, RPM will be posted in next article.

Post a Comment


  1. Thank you for the questions. Please provide the answers as well

  2. I have added answer for first 5 questions. I will be adding more as I will get time. Thanks for reading .

    1. HI Ritech. If you can add the answers for the above questions. It would be great helpful. Thank you for your article.

    2. Give me sometime, I will add answers.


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