ECON139 Chapter 12

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

A) 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

A) e-distributor

An ________ provides an online catalog that represents the products of thousands of direct manufacturers. A) e-distributor B) e-procurement company C) exchange D) industry consortium

A) e-distributor

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.

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

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.

A) price transparency

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.

A) 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.

A) show goods from a single seller

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.

A) they typically serve vertical markets

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

B) Ariba

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

C) PTX

________ are the fastest growing form of B2B e-commerce. A) R-distributors B) Exchanges C) Private industrial networks D) Industry consortiums

C) Private industrial networks

Most 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.

C) contract purchasing of direct goods

Which of the following primarily deals 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

C) exchanges and industry consortia

Which of the following primarily deals 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

B) e-distributors and e-procurement Net marketplaces

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.

B) increased product cycle time

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

B) indirect goods

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

B) industry consortium

B2B e-commerce websites: 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.

B) tend to serve horizontal markets

________ 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

D) Collaborative commerce

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

D) SCM

Which of the following primarily involves 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

D) e-procurement Net marketplaces and industry consortia

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

D) search for suppliers

All of the following are important trends in B2B e-commerce in 2016-2017, except: A) the growing emphasis on obtaining real-time data. B) growing emphasis on lowest cost supply chains. C) generation and management of huge big data repositories. D) an increase in regional manufacturing and supply chains.

B) growing emphasis on lowest cost supply chains.

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

C) 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.

C) lower price transparency

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.

D) desktop computers

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

A) e-distributor

________ is an example of an e-distributor. A) Amazon Business B) PowerSource Online C) SupplyOn D) Elemica

A) Amazon Business

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

B) 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.

B) EDI lacks universal standards

________ 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

C) Lean

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.

D) failing to be efficient

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.

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

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

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

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.

A) RFQs

________ 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

A) Spot

________ 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

A) Supply chain

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

A) exchange

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

A) vertical

________ 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

B) Tight coupling

________ was/were 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

B) automated order entry

The term BYOD refers to employees: A) working from home. B) being allowed or encouraged to use their own mobile devices and laptops. C) using mobile devices for work. D) bringing work devices to the home.

B) being allowed or encouraged to use their own mobile devices and laptops

Which of the following primarily serves 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

B) e-distributors and e-procurement Net marketplaces

An ________ primarily serves businesses that buy indirect goods on a contract purchasing basis. A) e-distributor B) e-procurement Net marketplace C) exchange D) industry consortium

B) e-procurement Net marketplace

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

B) existing EDI networks

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

B) paper napkins

Supply chain ________ refers to differentiating a firm's products or prices based on superior supply chain management. A) management B) simplification C) competition D) collaboration

C) competition

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.

C) environmental concerns

An ________ primarily serves businesses that buy direct goods on a spot purchasing basis. A) e-distributor B) e-procurement company C) exchange D) industry consortium

C) exchange

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

C) industry committees

The essential characteristic of ________ are they bring hundreds to thousands of suppliers into a single Internet-based environment to conduct trade. A) industry communications B) exchanges C) Net marketplaces D) horizontal markets

C) net marketplaces

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.

D) They are always private

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

D) accountable

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.

D) foster sharing sensitive internal information with suppliers and purchasers

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

D) industry consortium