Question 1 of 30
A retail company has conducted a physical inventory count and discovered that the actual quantity of a high-demand product is significantly lower than what is recorded in the system. The discrepancy is attributed to theft and damage that went unnoticed during regular operations. What is the most appropriate action the inventory manager should take to rectify this situation in Oracle Inventory Cloud?
Perform a negative inventory adjustment to decrease the recorded quantity to match the physical count.
Create a new inventory item to reflect the actual quantity and phase out the old item.
Increase the recorded quantity to match the expected sales forecast for the upcoming month.
Initiate a transfer of inventory from another location to cover the discrepancy without adjusting the records.

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