Thammasat University

ECON 101

Chapter 12 B2B E-commerce: Supply Chain Management and Collaborative Commerce

1)The cost of participating in B2B e-commerce systems has fallen significantly.

2. Virtually all firms, both large and small, now use Electronic Data Interchange (EDI) systems.

3. Private industrial networks are the most prevalent form of Internet-based B2B commerce.

4. Regional supply chains provide lower short term costs, but higher, longer term risk protection.

5. Collaborative commerce is primarily concerned with the development of a rich communications environment.

6. Enterprise systems are corporate-wide systems that relate to various aspects of production such as finance, human resources, and procurement.

7. MRO goods are also known as indirect goods.

8. E-distributors operate in horizontal markets.

9. Exchanges tend to be biased toward the seller even though they are independently owned and presumably neutral.

10. Exchanges have proven successful in providing additional value-added services that transform the value chain for the entire industry.

11. The bias of industry consortia is toward large buyers.

12. Private industrial networks typically involve manufacturing and related support industries.

13. Net marketplaces focus on continuous business process coordination between companies while private industrial networks are primarily transaction-based.

14. Industry consortia are usually owned collectively by the major firms participating in the consortia, while private industrial networks usually are created by a single sponsoring company.

15. Demand chain visibility is one goal of collaborative commerce.

16. VWGroupSupply.com is an example of an:
    1. e-distributor.

1. 2. e-procurement Net marketplace.
   3. Exchange.
   4. industry consortium.

17. Analysts predict that B2B e-commerce in the United States will grow by 2016 to approximately:
    1. $5.6 billion.
    2. $56 billion.
    3. $560 billion.
    4. $5.6 trillion.

18. Which of the following is not a major trend in B2B e-commerce in 2012-2013?
    1. Decreased growth of B2B e-commerce due to the recession
    2. use of social networks by B2B firms
    3. growing use of mobile platform for B2B systems
    4. B2B systems move to cloud providers

19. Which of the following is not a benefit of carving up a single, global B2B platform into product and region-centered systems?
    1. Lower risk
    2. Greater adaptability
    3. Lower complexity
    4. Lower cost

20. In 2012, the total amount of B2B e-commerce in the United States was approximately:
    1. $4.1 billion.
    2. $41 billion.
    3. $410 billion.
    4. $4.1 trillion.

21. Which of the following was the first step in the development of B2B commerce?
    1. Electronic Data Interchange (EDI)
    2. Automated order entry systems
    3. Digital storefronts
    4. Private industrial networks

22. Which of the following terms refers to the total flow of value among firms?
    1. total interfirm trade
    2. B2B commerce
    3. multi-tier exchange
    4. liquidity

23. Which of the following is not true about automated order entry systems?
    1. Automated order entry systems are typically owned by the suppliers.
    2. Automated order entry systems no longer play an important role in B2B commerce.
    3. Automated order entry systems show goods only from a single seller.
    4. Automated order entry systems reduce the costs of inventory replenishment.

24. None of the following statements about EDI are true except:
    1. EDI systems generally serve horizontal markets.
    2. EDI systems are seller-side solutions.
    3. EDI is a communications standard for sharing business documents.
    4. EDI systems no longer play an important role in B2B commerce.

25. Which of the following is not true about B2B electronic storefronts?
    1. They are a predecessor of automated order entry systems.
    2. They tend to serve horizontal markets.
    3. They are seller-side solutions.
    4. They are usually considered a type of Net marketplace.

26. Which of the following is another name for a private industrial network?
    1. Net marketplace
    2. PTX
    3. EDI network
    4. hub-and-spoke system

27. All of the following are weaknesses of EDI except:
    1. EDI is not well suited for electronic marketplaces.
    2. EDI lacks universal standards.
    3. EDI does not provide a real-time communication environment.
    4. EDI does not scale easily.

28. Which of the following is the fastest growing form of online B2B e-commerce?
    1. e-distributors
    2. Exchanges
    3. Private industrial networks
    4. Industry consortiums

29. All of the following are potential benefits of B2B e-commerce except:
    1. Lower administrative costs.
    2. Lower search costs.
    3. Lower price transparency.
    4. Lower transaction costs.

30. What is the first step in the procurement process?
    1. Negotiate price
    2. Qualify the seller and its products
    3. Issue a purchase order
    4. Search for suppliers

31. The last step in the procurement process is:
    1. Sending a remittance payment.
    2. Sending the invoice.
    3. Shipping the goods.
    4. Delivering the goods.

32. Office supplies are an example of:
    1. Direct goods.
    2. Indirect goods.
    3. MRO goods.
    4. Distributed goods.

33. The majority of interfirm trade involves:
    1. Spot purchasing of direct goods.
    2. Contract purchasing of indirect goods.
    3. Contract purchasing of direct goods.
    4. Spot purchasing of indirect goods.

34. Which of the following is a method of inventory cost management that seeks to eliminate excess inventory?
    1. Lean production
    2. Sustainable production
    3. Just-in-time production
    4. Supply chain simplification

35. All of the following are major developments in supply chain management except:
    1. Supply chain simplification.
    2. EDI.
    3. Accountable supply chains.
    4. The elimination of legacy computer systems.

36.                        is a method for ensuring that suppliers precisely deliver ordered parts at a specific time and to a particular location.
    1. Having an adaptive supply chain
    2. Tight coupling
    3. Supply-chain management
    4. Materials requirement planning

37. EDI transactions total about                            percent of all B2B e-commerce in 2011.
    1. 10
    2. 35
    3. 50
    4. 75

38. EDI began as a(n)                            system.
    1. document automation
    2. document elimination
    3. continuous replenishment
    4. MRP

39. Most industry groups are moving toward which language for expressing EDI documents and communications?
    1. HTML
    2. XML

1. 3. Java
   4. SQL

40. 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.
    1. EDI
    2. ERP
    3. CPFR
    4. SCM

41. All of the following are true about collaborative commerce systems except:
    1. They involve a move from a transaction focus to a relationship focus.
    2. They may include both customers and suppliers.
    3. They are open, competitive marketplaces.
    4. They typically include a central data repository.

42. Which of the following is not a characteristic of the use of social networks in B2B e-commerce?
    1. It is typically unstructured.
    2. It helps develop a more personal relationship between participants in the supply chain.
    3. It enables participants to make decisions based on current conditions.
    4. They are always private.

43. Which of the following primarily serve horizontal markets?
    1. E-distributors and exchanges
    2. E-distributors and e-procurement Net marketplaces
    3. E-procurement Net marketplaces and industry consortia
    4. Exchanges and industry consortia

44. Which of the following primarily deal with indirect goods?
    1. e-distributors and industry consortia
    2. e-distributors and e-procurement Net marketplaces
    3. exchanges and industry consortia
    4. exchanges and e-procurement Net marketplaces

45. Which of the following primarily deal with direct goods?
    1. e-distributors and independent exchanges
    2. exchanges and e-procurement Net marketplaces
    3. exchanges and industry consortia
    4. e-procurement Net marketplaces and industry consortia

46. All of the following are methods of classifying Net marketplaces except:
    1. by technology used.
    2. by pricing mechanism used.
    3. by type of goods sold.
    4. by type of purchasing used.

47. Which of the following primarily involve long-term sourcing?

1. 1. e-distributors and exchanges
   2. e-distributors and industry consortia
   3. e-procurement Net marketplaces and exchanges
   4. e-procurement Net marketplaces and industry consortia

48. An                         provides electronic catalogs that represent the products of thousands of direct manufacturers.

1. 1. E-distributor
   2. E-procurement company
   3. Exchange
   4. Industry consortium

49. An                      primarily serves businesses that buy indirect goods on a spot purchasing basis.

1. E-distributor
2. E-procurement company
3. Exchange
4. Industry consortium

51. An                         primarily serves businesses that primarily buy indirect goods on a contract purchasing basis.
    1. e-distributor
    2. e-procurement Net marketplace
    3. exchange
    4. industry consortium

59. An                         primarily serves businesses that primarily buy direct goods on a contract purchasing basis.
    1. e-distributor
    2. e-procurement company
    3. Exchange
    4. Industry consortium

56. An                         primarily serves businesses that primarily buy direct goods on a spot purchasing basis.
    1. e-distributor
    2. e-procurement company
    3. exchange
    4. industry consortium

50. All of the following statements about e-distributors are true except:
    1. e-distributors make money by charging a mark-up on products they distribute.
    2. e-distributors usually operate "private" markets.
    3. e-distributors operate in horizontal markets.
    4. e-distributor prices are usually fixed.

52. Which of the following is an example of an e-procurement Net marketplace?
    1. Exostar

1. 2. Ariba
   3. Grainger
   4. None of the above

53. An e-procurement Net marketplace is sometimes referred to as a:
    1. One-to-one market.
    2. one-to-many market.
    3. many-to-few market.
    4. many-to-many market.

54. An example of an indirect good in the fast-food industry is:
    1. food-grade paper.
    2. fax paper.
    3. beef.
    4. sugar.

55. An                         is an independently owned, online marketplace that connects hundreds to potentially thousands of suppliers and buyers in a dynamic, real-time environment.
    1. Exchange
    2. E-distributor
    3. E-procurement company
    4. Industry consortium

57. Which of the following does not have a primary impact on the liquidity of a market?
    1. price transparency
    2. number of buyers and sellers in market
    3. volume of transactions
    4. size of transactions

58. Exchanges have failed primarily because:
    1. suppliers have refused to join them.
    2. buyers have refused to join them.
    3. the existing markets have had too high liquidity.
    4. excessive trade value per transaction.

60. Industry consortia are sometimes referred to as:
    1. many-to-many markets.
    2. many-to-few markets.
    3. one-to-one markets.
    4. one-to-many markets.

61.                        is another name for Trans organizational business processes.
    1. Supply chain management
    2. Collaborative commerce
    3. B2B e-commerce
    4. Value chain management

62. Private industrial networks are direct descendants of:
    1. e-procurement Net marketplaces.
    2. existing EDI networks.
    3. independent exchanges.
    4. industry consortia.

63. Which of the following is not an objective of a private industrial network?
    1. Developing industry-wide response planning to supplement enterprise-wide resource planning
    2. Creating increasing supply chain visibility
    3. Achieving closer buyer-supplier relationships
    4. Obtaining equity participation in the network from other major firms in the industry

64. All of the following are forms of collaboration among businesses except:
    1. RFQs.
    2. CPFR.
    3. demand chain visibility.
    4. marketing coordination and product design.

65. Which of the following is not a typical barrier to the implementation of a private industrial network?
    1. It requires participating firms to share sensitive data.
    2. It requires the large network owners to give up some of its independence.
    3. It requires a significant investment of time and money.
    4. It requires a change of mind-set and behavior of employees.

66. The topology of EDI systems is often referred to as a(n)                               system, with the buyers in the center and the suppliers connected to the center via private dedicated networks.

67. A(n)                         market is one that provides expertise and products for a specific industry, such as automobiles.

68. 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.

69. The essential characteristic of                            is that they bring hundreds to thousands of suppliers into a single Internet-based environment to conduct trade.

70.                        is a set of production methods that focuses on the elimination of waste throughout the customer value chain.

71.                        purchasing involves the purchase of goods based on immediate needs in larger marketplaces that involve many suppliers.

72.                        purchasing involves long-term written agreements to purchase specified products, with

agreed-upon terms and quality, for an extended period of time.

73.                        systems are generally older computer systems used to manage key business processes in a firm.

74.                        systems are corporate-wide systems that relate to all aspects of production.

75.                        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.

76. The four main types of Net marketplaces are e-distributors, e-procurement networks, exchanges, and

                     .

77.                        services include automation of a firm's entire procurement process on the buyer side and automation of the selling business processes on the seller side.

78. A(n)                         supply chain includes a company's secondary and tertiary suppliers.

79.                        can be viewed as "extended enterprises" in the sense that they often begin as ERP systems in a single firm and are then expanded to include the firm's major suppliers.

80.                        is a call for business to take social and ecological interests, and not just corporate profits, into account in all their decision-making throughout the firm.

81. Define and discuss the terms total interfirm trade, B2B commerce, and B2B e-commerce in the context of the history and significance of B2B e-commerce.

82. Identify and describe the major stages in the development of B2B commerce.

83. Define the procurement process. What are the seven basic steps in the procurement process?

84. Define and explain supply chain management systems, supply chain simplification, and collaborative commerce, and the relationship between these concepts.

Supply chain simplification, focusing on strategic partners in the production process, ERP systems, and continuous inventory replenishment are the foundation for contemporary supply chain management (SCM)