Chapter 12

Front 1

16) AmazonSupply is an example of an:

A) e-distributor.

B) e-procurement Net marketplace.

C) exchange.

D) industry consortium.

Back 1

A) e-distributor.

Front 2

17) Analysts predict that B2B e-commerce in the United States will grow by 2018 to approximately:

A) $7.8 billion.

B) $78 billion.

C) $780 billion.

D) $7.8 trillion.

Back 2

D) $7.8 trillion.

Front 3

18) Which of the following is not a current major trend in B2B e-commerce?

A) Large firms move toward consolidating regional B2B systems into global systems.

B) The Internet of Things begins to impact how supply chains operate.

C) Firms place a growing emphasis on rapid-response and optimal supply chain rather than lowest-cost supply chains.

D) B2B systems move towards cloud computing providers and away from individual corporate data centers.

Back 3

A) Large firms move toward consolidating regional B2B systems into global systems.

Front 4

19) 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.

Back 4

D) failing to be efficient.

Front 5

20) In 2014, the total amount of B2B e-commerce in the United States was approximately:

A) $5.7 billion.

B) $57 billion.

C) $570 billion.

D) $5.7 trillion.

Back 5

D) $5.7 trillion.

Front 6

21) Which of the following was the first step in the development of B2B commerce?

A) Electronic Data Interchange (EDI)

B) automated order entry systems

C) digital storefronts

D) private industrial networks

Back 6

B) automated order entry systems

Front 7

22) Which of the following terms refers to the links that connect business firms with one another to coordinate production?

A) supply chain

B) seller-side solutions

C) multi-tier exchange

D) liquidity

Back 7

A) supply chain

Front 8

23) Which of the following statements about automated order entry systems is not true?

A) They are typically owned by the suppliers.

B) They no longer play an important role in B2B commerce.

C) They show goods only from a single seller.

D) They reduce the costs of inventory replenishment.

Back 8

B) They no longer play an important role in B2B commerce.

Front 9

24) EDI systems:

A) generally serve horizontal markets.

B) are seller-side solutions.

C) are based on a communications standard for sharing business documents.

D) no longer play an important role in B2B commerce.

Back 9

C) are based on a communications standard for sharing business documents.

Front 10

25) Which of the following statements about B2B e-commerce Web sites is not true?

A) They are a predecessor of automated order entry systems.

B) They tend to serve horizontal markets.

C) They are seller-side solutions.

D) They are usually considered a type of Net marketplace.

Back 10

A) They are a predecessor of automated order entry systems.

Front 11

26) Which of the following is another name for a private industrial network?

A) Net marketplace

B) PTX

C) EDI network

D) hub-and-spoke system

Back 11

B) PTX

Front 12

27) 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.

Back 12

B) EDI lacks universal standards.

Front 13

28) 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

Back 13

C) private industrial networks

Front 14

29) 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.

Back 14

C) lower price transparency.

Front 15

30) 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

Back 15

D) search for suppliers

Front 16

31) 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.

Back 16

A) sending a remittance payment.

Front 17

32) Office supplies are an example of:

A) direct goods.

B) indirect goods.

C) MRO goods.

D) distributed goods.

Back 17

B) indirect goods.

Front 18

33) 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.

Back 18

C) contract purchasing of direct goods.

Front 19

34) 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

Back 19

C) just-in-time production

Front 20

35) 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.

Back 20

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

Front 21

36) ________ 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

Back 21

B) Tight coupling

Front 22

37) 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

Back 22

D) over 25

Front 23

38) EDI began as a(n) ________ system.

A) document automation

B) document elimination

C) continuous replenishment

D) MRP

Back 23

A) document automation

Front 24

39) 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.

Back 24

B) increased product cycle time.

Front 25

40) A(n) ________ system continuously links the activities of buying, making, and moving products fromsuppliers to purchasing firms, as well as integrating order entry systems.

A) EDI

B) ERP

C) CPFR

D) SCM

Back 25

D) SCM

Front 26

41) Which of the following statements about collaborative commerce systems is not true?

A) They involve a move from a transaction focus to a relationship focus.

B) They may include both customers and suppliers.

C) They are open, competitive marketplaces.

D) They typically include a central data repository.

Back 26

C) They are open, competitive marketplaces.

Front 27

42) 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.

Back 27

D) They are always private.

Front 28

43) 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

Back 28

B) e-distributors and e-procurement Net marketplaces

Front 29

44) 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

Back 29

B) e-distributors and e-procurement Net marketplaces

Front 30

45) 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

Back 30

C) exchanges and industry consortia

Front 31

46) 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.

Back 31

C) environmental concerns.

Front 32

47) 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

Back 32

D) e-procurement Net marketplaces and industry consortia

Front 33

48) 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

Back 33

A) e-distributor

Front 34

49) 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

Back 34

A) e-distributor

Front 35

50) Which of the following statements about e-distributors is not true?

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

B) E-distributors usually operate "private" markets.

C) E-distributors operate in horizontal markets.

D) E-distributor prices are usually fixed.

Back 35

B) E-distributors usually operate "private" markets.

Front 36

51) 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

Back 36

B) e-procurement Net marketplace

Front 37

52) Which of the following is an example of an e-procurement Net marketplace?

A) TheSeam

B) Ariba

C) Grainger

D) SupplyOn

Back 37

B) Ariba

Front 38

53) 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.

Back 38

D) desktop computers.

Front 39

54) An example of an indirect good in the fast-food industry is:

A) mustard.

B) paper napkins.

C) beef.

D) sugar.

Back 39

B) paper napkins.

Front 40

55) 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

Back 40

A) exchange

Front 41

56) 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

Back 41

C) exchange

Front 42

57) 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

Back 42

A) price transparency

Front 43

58) Which of the following is not an important trend in B2B e-commerce in 2014-2015?

A) concern about supply chain risk

B) concern about supply chain sustainability

C) concern about the accountability of supply chains

D) concern about increasing use of the mobile platform

Back 43

D) concern about increasing use of the mobile platform

Front 44

59) 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

Back 44

D) industry consortium

Front 45

60) 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.

D) The Volkswagen Group developed VWGroupSupply using technology from a number of vendors.

Back 45

B) VWGroupSupply.com is an industry consortium.

Front 46

61) ________ is another name for transorganizational business processes.

A) Supply chain management

B) Collaborative commerce

C) B2B e-commerce

D) Value chain management

Back 46

B) Collaborative commerce

Front 47

62) Private industrial networks are direct descendants of:

A) e-procurement Net marketplaces.

B) existing EDI networks.

C) independent exchanges.

D) industry consortia.

Back 47

B) existing EDI networks.

Front 48

63) EDI document structures are defined by:

A) a single international standards body.

B) by individual suppliers and buyers.

C) industry committees.

D) each purchaser.

Back 48

C) industry committees.

Front 49

64) 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.

Back 49

A) RFQs.

Front 50

65) 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.

Back 50

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