Chapter 12

In 2015, the total amount of B2B e-commerce in the United States was approximately: A) $6.3 billion. B) $63 billion. C) $630 billion. D) $6.3 trillion

$6.3 trillion

Analysts predict that B2B e-commerce in the United States will grow by 2019 to approximately: A) $8.6 billion. B) $86 billion. C) $860 billion. D) $8.6 trillion.

$8.6 trillion

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.

VWGroupSupply.com is an industry consortium

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

accountable

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

automated order entry systems

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

competition

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

contract purchasing of direct goods.

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

desktop computers

EDI began as a(n) ________ system. A) document automation B) document exchange C) invoice generation D) MRP

document automation

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

e-distributor

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

e-distributor

WW Grainger is an example of a(n) ________. A) e-distributor B) exchange C) private industrial network D) e-procurement Net marketplace

e-distributor

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

e-distributors and e-procurement Net marketplaces

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

e-distributors and e-procurement Net marketplaces

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

e-procurement Net marketplace

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

e-procurement Net marketplaces and industry consortia

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

environmental concerns

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

exchange

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

exchange

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

exchanges and industry consortia

Private industrial networks are direct descendants of: A) e-procurement Net marketplaces. B) existing EDI networks. C) independent exchanges. D) industry consortia.

existing EDI networks

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.

failing to be efficient

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.

foster sharing sensitive internal information with suppliers and purchasers.

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.

increased product cycle time.

Office supplies are an example of: A) direct goods. B) indirect goods. C) MRO goods. D) distributed goods

indirect goods

EDI document structures are defined by: A) a single international standards body. B) individual suppliers and buyers. C) industry committees. D) each purchaser.

industry committees.

The Seam is an example of an ________. A) exchange B) industry consortium C) e-procurement Net marketplace D) e-distributor

industry consortium

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.

industry demand for supply chain sustainability

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

just-in-time production

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

lower price transparency

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.

make money by charging a mark-up on products they distribute.

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

over 25

An example of an indirect good in the fast-food industry is: A) mustard. B) paper napkins. C) beef. D) sugar.

paper napkins

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.

price transparency

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

private industrial networks

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

search for suppliers

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.

sending a remittance payment

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.

show goods from a single seller

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

supply chain

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

tend to serve horizontal markets

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.

use their own mobiles and laptops

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

vertical

Which of the following is an example of an e-distributor? A) AmazonSupply B) PowerSource Online C) VWGroupSupply D) Elemica

AmazonSupply

________ is another name for transorganizational business processes. A) Supply chain management B) Collaborative commerce C) B2B e-commerce D) Value chain management

Collaborative commerce

________ 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

Collaborative commerce

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.

EDI lacks universal standards.

A private industrial network is an independently owned online marketplace that connects many suppliers and buyers.

FALSE

E-distributors operate in vertical markets.

FALSE

Exchanges are closely tied to ERP systems used by large firms.

FALSE

Few large firms today have Electronic Data Interchange (EDI) systems.

FALSE

Industrial consortia were the first form of Internet-based B2B commerce.

FALSE

Operating on a global scale is one goal of collaborative commerce.

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.

FALSE

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

Industry consortium

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.

It requires the large network owners to give up some of its independence.

________ 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

Lean

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.

Move to implement highly centralized supply chains to reduce risk.

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.

Much of the expense of the system is shifted from the B2B network provider to the firm.

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

Net marketplaces

Which of the following is another name for a private industrial network? A) industry consortia B) EDI system C) PTX D) net marketplace

PTX

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.

RFQs

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

SCM

Which of the following is an example of an e-procurement Net marketplace? A) TheSeam B) Ariba C) Grainger D) SupplyOn

Ariba

________ 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

Spot

B2B e-commerce Web sites tend to serve horizontal markets

TRUE

Collaborative commerce has a much broader mission than EDI.

TRUE

Highly centralized supply chains provide lower short-term costs, but higher, longer-term risk protection.

TRUE

Industry consortia are more focused on optimizing long-term relationships than independent exchanges, which tend to focus more on short-term purchasing relationships.

TRUE

Lean production is an extension of just-in-time production methods.

TRUE

MRO goods are also known as indirect goods

TRUE

Purchasing managers are the key players in the procurement process.

TRUE

Walmart is the largest purchaser of consumer goods in the world

TRUE

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.

They are always private

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.

They typically serve vertical markets

________ 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

Tight coupling