Why do you need to define WIP parameters
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to define modes of operation and to assign default values for various work in process functions
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You can only define one set of WIP parameters per inventory organization
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Both option 1 and 2
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None of the above
Oracle WIP parameters serve two purposes: defining operational modes and default values for work in process functions, and each inventory organization can have only one set of these parameters, ensuring consistency across the organization.
WIP Parameters need to be defined both to set the default modes of operation (such as backflush defaults, move transaction defaults, etc.) for various Work in Process functions, and because these parameters are defined once per inventory organization, governing that organization's WIP behavior. Both facts are true simultaneously, which is why "Both option 1 and 2" is the complete answer.