E-commerce Chapter 12
WW Grainger is an example of a(n) ________. A) e-distributor B) exchange C) private industrial network
Answer: A
E-distributors operate in vertical markets.
Answer: FALSE
________ is another name for transorganizational business processes. A) Supply chain management B) Collaborative commerce C) B2B e-commerce D) Value chain management
Answer: B
A private industrial network is an independently owned online marketplace that connects many suppliers and buyers.
Answer: FALSE
Exchanges are closely tied to ERP systems used by large firms.
Answer: FALSE
Few large firms today have Electronic Data Interchange (EDI) systems.
Answer: FALSE
Industrial consortia were the first form of Internet-based B2B commerce.
Answer: FALSE
Operating on a global scale is one goal of collaborative commerce.
Answer: FALSE
Private industrial networks are usually owned collectively by the major firms participating in the network, while exchanges usually are created by a single sponsoring company.
Answer: FALSE
________ purchasing involves the purchase of goods based on immediate needs in larger marketplaces that involve many suppliers. A) Spot B) Indirect C) Vertical D) Bulk
Answer: A
Cisco estimates that by 2016, mobile traffic will represent ________% of all business Internet traffic. A) less than 5 B) around 10 C) around 15 D) over 25
Answer: D
Collaborative commerce systems: A) focus on structuring intra-firm communications. B) bring customers into the product development phase. C) provide open, competitive marketplaces. D) foster sharing sensitive internal information with suppliers and purchasers.
Answer: D
Walmart's global supply chain has been criticized for all of the following except: A) exploiting labor in underdeveloped countries. B) bribing officials. C) wasting energy. D) failing to be efficient.
Answer: D
What is the first step in the procurement process? A) negotiate price B) qualify the seller and its products C) issue a purchase order D) search for suppliers
Answer: D
Which of the following is not a characteristic of the use of social networks in B2B e-commerce? A) It is typically unstructured. B) It helps develop a more personal relationship between participants in the supply chain. C) It enables participants to make decisions based on current conditions. D) They are always private
Answer: D
Which of the following primarily involve long-term sourcing? A) e-distributors and exchanges B) e-distributors and industry consortia C) e-procurement Net marketplaces and exchanges D) e-procurement Net marketplaces and industry consortia
Answer: D
_______ is defined as the use of digital technologies to permit organizations to work together to design, develop, build, and manage products through their life cycles. A) SCM B) Social e-commerce C) EDI D) Collaborative commerce
Answer: D
A(n) ________ market is one that provides expertise and products for a specific industry, such as automobiles. A) vertical B) horizontal C) indirect D) buyer-biased
Answer: A
E-distributors: A) make money by charging a mark-up on products they distribute. B) usually operate "private" markets. C) operate in vertical markets. D) focus on selling direct products.
Answer: A
EDI began as a(n) ________ system. A) document automation B) document exchange C) invoice generation D) MRP
Answer: A
The last step in the procurement process is: A) sending a remittance payment. B) sending the invoice. C) shipping the goods. D) delivering the goods.
Answer: A
The liquidity of a market is measured by all of the following except: A) price transparency. B) number of buyers and sellers in market. C) volume of transactions. D) size of transactions.
Answer: A
________ is a method for ensuring that suppliers precisely deliver ordered parts at a specific time and to a particular location. A) Having an adaptive supply chain B) Tight coupling C) Supply-chain management D) Materials requirement planning
Answer: B
Which of the following is an example of an e-distributor? A) AmazonSupply B) PowerSource Online C) VWGroupSupply D) Elemica
Answer: A
Which of the following statements about EDI systems is true? A) They typically serve vertical markets. B) They are seller-side solutions. C) They evolved from private trading exchanges. D) They still play an important role in B2C commerce.
Answer: A
Which of the following statements about cloud-based B2B systems is not true? A) Much of the expense of the system is shifted from the B2B network provider to the firm. B) B2B network providers charge customers on a demand basis. C) Network effects apply, enabling the spreading of costs. D) Cloud-based B2B data networks can be implemented in short periods of time.
Answer: A
Which of the following terms refers to the links that connect business firms with one another to coordinate production? A) supply chain B) B2B e-commerce C) vertical market D) horizontal market
Answer: A
All of the following are current major trends in B2B e-commerce, except: A) Move to implement highly centralized supply chains to reduce risk. B) Growing emphasis on use of business analytics software (business intelligence) to understand very large data sets. C) Firms place a growing emphasis on rapid-response and adaptive supply chain rather than lowest-cost supply chains. D) Risks of far-flung global networks lead to an increase in regional manufacturing and supply chains.
Answer: A
All of the following are forms of collaboration among businesses except: A) RFQs. B) CPFR. C) demand chain visibility. D) marketing coordination and product design.
Answer: A
An ________ is an independently owned, online marketplace that connects hundreds to potentially thousands of suppliers and buyers in a dynamic, real-time environment. A) exchange B) e-distributor C) e-procurement company D) industry consortium
Answer: A
An ________ primarily serves businesses that buy indirect goods on a spot purchasing basis. A) e-distributor B) e-procurement company C) exchange D) industry consortium
Answer: A
An ________ provides electronic catalogs that represent the products of thousands of direct manufacturers. A) e-distributor B) e-procurement company C) exchange D) industry consortium
Answer: A
Automated order entry systems: A) show goods from a single seller. B) increased the costs of inventory replenishment. C) are typically owned by the purchasing firm. D) no longer play an important role in B2B commerce
Answer: A
All of the following are important trends in B2B e-commerce in 2015-2016, except: A) the growing emphasis on obtaining real-time data. B) industry demand for supply chain sustainability. C) generation and management of huge Big Data repositories. D) increase in regional manufacturing.
Answer: B
All of the following are potential benefits of B2B e-commerce except: A) increased production flexibility. B) increased product cycle time. C) increased opportunities to collaborate with suppliers and distributors. D) increased visibility and real-time information sharing among all participants in the supply chain network.
Answer: B
All of the following are weaknesses of EDI except: A) EDI is not well suited for electronic marketplaces. B) EDI lacks universal standards. C) EDI does not provide a real-time communication environment. D) EDI does not scale easily.
Answer: B
An ________ primarily serves businesses that primarily buy indirect goods on a contract purchasing basis. A) e-distributor B) e-procurement Net marketplace C) exchange D) industry consortium
Answer: B
An example of an indirect good in the fast-food industry is: A) mustard. B) paper napkins. C) beef. D) sugar.
Answer: B
B2B e-commerce Web sites: A) are a predecessor of industry consortia. B) tend to serve horizontal markets. C) are buyer-side solutions. D) are considered a type of EDI system.
Answer: B
In the BYOD trend, employees are allowed or encouraged to: A) work from home. B) use their own mobiles and laptops. C) use mobile devices for work. D) bring work devices to the home.
Answer: B
Office supplies are an example of: A) direct goods. B) indirect goods. C) MRO goods. D) distributed goods.
Answer: B
Private industrial networks are direct descendants of: A) e-procurement Net marketplaces. B) existing EDI networks. C) independent exchanges. D) industry consortia.
Answer: B
The Seam is an example of an ________. A) exchange B) industry consortium C) e-procurement Net marketplace D) e-distributor
Answer: B
Which of the following is an example of an e-procurement Net marketplace? A) TheSeam B) Ariba C) Grainger D) SupplyOn
Answer: B
Which of the following is not a typical barrier to the implementation of a private industrial network? A) It requires participating firms to share sensitive data. B) It requires the large network owners to give up some of its independence. C) It requires a significant investment of time and money. D) It requires a change of mindset and behavior of employees.
Answer: B
Which of the following primarily deal with indirect goods? A) e-distributors and industry consortia B) e-distributors and e-procurement Net marketplaces C) exchanges and industry consortia D) exchanges and e-procurement Net marketplaces
Answer: B
All of the following are potential benefits of B2B e-commerce except: A) lower administrative costs. B) lower search costs. C) lower price transparency. D) lower transaction costs.
Answer: C
All of the following have led to the development of outsourcing of manufacturing around the world except: A) technology. B) globalization of trade. C) environmental concerns. D) high levels of wage disparity between the developed and undeveloped worlds.
Answer: C
An ________ primarily serves businesses that primarily buy direct goods on a spot purchasing basis. A) e-distributor B) e-procurement company C) exchange D) industry consortium
Answer: C
EDI document structures are defined by: A) a single international standards body. B) individual suppliers and buyers. C) industry committees. D) each purchaser.
Answer: C
Supply chain ________ refers to differentiating a firm's products or prices on the basis of superior supply chain management. A) management B) simplification C) competition D) collaboration
Answer: C
The essential characteristic of ________ is that they bring hundreds to thousands of suppliers into a single Internet-based environment to conduct trade. A) industry consortia B) exchanges C) Net marketplaces D) horizontal markets
Answer: C
The majority of inter-firm trade involves: A) spot purchasing of direct goods. B) contract purchasing of indirect goods. C) contract purchasing of direct goods. D) spot purchasing of indirect goods.
Answer: C
Which of the following is a method of inventory cost management that seeks to eliminate excess inventory? A) lean production B) sustainable production C) just-in-time production D) supply chain simplification
Answer: C
Which of the following is another name for a private industrial network? A) industry consortia B) EDI system C) PTX D) net marketplace
Answer: C
Which of the following is the fastest growing form of B2B e-commerce? A) e-distributors B) exchanges C) private industrial networks D) industry consortiums
Answer: C
________ production is a set of production methods that focuses on the elimination of waste throughout the customer value chain. A) Green B) Sustainable C) Lean D) Just-in-time
Answer: C
A(n) ________ supply chain is one in which the labor conditions in low-wage, underdeveloped producer countries are visible and morally acceptable to ultimate consumers in more developed industrial societies. A) sustainable B) ethical C) lean D) accountable
Answer: D
A(n) ________ system continuously links the activities of buying, making, and moving products from suppliers to purchasing firms, as well as integrating order entry systems. A) EDI B) ERP C) CPFR D) SCM
Answer: D
All of the following are examples of direct goods in the auto industry except: A) sheet steel. B) shatter-resistant glass. C) rubber molding. D) desktop computers.
Answer: D
An ________ serves businesses that primarily buy direct goods on a contract purchasing basis. A) e-distributor B) e-procurement company C) exchange D) industry consortium
Answer: D
B2B e-commerce Web sites tend to serve horizontal markets.
Answer: TRUE
Collaborative commerce has a much broader mission than EDI.
Answer: TRUE
Highly centralized supply chains provide lower short-term costs, but higher, longer-term risk protection.
Answer: TRUE
Industry consortia are more focused on optimizing long-term relationships than independent exchanges, which tend to focus more on short-term purchasing relationships.
Answer: TRUE
Lean production is an extension of just-in-time production methods.
Answer: TRUE
MRO goods are also known as indirect goods.
Answer: TRUE
Which of the following primarily serve horizontal markets? A) e-distributors and exchanges B) e-distributors and e-procurement Net marketplaces C) e-procurement Net marketplaces and industry consortia D) exchanges and industry consortia
Answer: B
Which of the following statements is not true? A) The Volkswagen Group manages almost all of its procurement needs via the Internet. B) VWGroupSupply.com is an industry consortium. C) VWGroupSupply can be accessed by suppliers via standard Web browser software and mobile devices. D) The Volkswagen Group developed VWGroupSupply using technology from a number of vendors.
Answer: B
Which of the following was the first step in the development of B2B e-commerce? A) Electronic Data Interchange (EDI) B) automated order entry systems C) computerized inventory databases D) digital invoices
Answer: B
Which of the following primarily deal with direct goods? A) e-distributors and independent exchanges B) exchanges and e-procurement Net marketplaces C) exchanges and industry consortia D) e-procurement Net marketplaces and industry consortia
Answer: C
Purchasing managers are the key players in the procurement process.
Answer: TRUE
Walmart is the largest purchaser of consumer goods in the world.
Answer: TRUE
