Deck 5: Business-To-Business Activities: Improving Efficiency and Reducing Costs

Question 1

In the past, one of the major advantages of VANs was the low cost of its application.

Answer 1

False

Question 2

Direct materials that companies buy on a recurring basis are called MRO supplies.

Answer 2

False

Question 3

A purchasing or logistics strategy that works this year may not work next year.

Answer 3

True

Question 4

Industry-specific data interchange standards were used to exchange data between companies in different industries.

Question 5

Electronic data interchange (EDI) was the first form of electronic commerce to be widely used in business.

Question 6

Many companies use strategic alliances, partnerships, and long-term contracts to create relationships with other companies in the supply chains for the products that they manufacture or sell.

Question 7

Businesses make a distinction between direct and indirect materials.

Question 8

The Data Interchange Standards Association (DISA) and the EDI for Administration, Commerce, and Transport (UN/EDIFACT) group were successful in developing a common set of international standards for electronic data interchange.

Question 9

The American National Standards Institute (ANSI) does not set standards, but maintains procedures for the development of national standards and accredits committees that follow those procedures.

Question 10

AS3 transmissions used for EDI transactions are insecure.

Question 11

The use of Internet technologies in sourcing activities is called e-sourcing.

Question 12

Large companies usually assign responsibility for purchasing direct and indirect materials to the same department.

Question 13

States can reduce the cost of providing services by using Web technologies to serve their stakeholders.

Question 14

Many industry value chains no longer consist of a single sequence of companies linked in a single line but include many parallel lines that are interconnected in a web or network configuration.

Question 15

Electronic data interchange (EDI) increases the paper flow and disperses the interchange of information among departments within a company.

Question 16

The network purchasing model has one hierarchically structured firm negotiating purchase terms with several similarly structured supplier firms, playing each supplier against the others.

Question 17

In the past, most value-added networks (VANs) did not require an enrollment fee.

Question 18

Electronic receipts returned from AS2 transmissions used in the exchange of EDI transactions fail to establish nonrepudiation.

Question 19

An independent exchange is a B2B marketplace model.

Question 20

An important characteristic of purchasing, logistics, and support activities is flexibility.

Question 21

One common support activity that underlies multiple primary activities is _____.

A) warehousing
B) purchasing
C) training
D) procuring

Question 22

To use the services of a value-added network (VAN), a company must install electronic data interchange (EDI) _____ software that is compatible with the VAN.

A) switch
B) interpreter
C) translator
D) router

Question 23

In 1979, American National Standards Institute (ANSI) chartered a new committee to develop uniform electronic data interchange (EDI) standards. This committee is called the _____.

A) ASC X12
B) DISA
C) EDIFACT
D) EDIINT

Question 24

A passive Radio Frequency Identification Device (RFID) tag does not need a power source.

Question 25

Electronic data interchange (EDI) is still the single most commonly used technology in online _____ transactions.

A) consumer-to-business
B) business-to-business
C) business-to-government
D) business-to-consumer

Question 26

EDI is the acronym for _____.

A) Education Interchange
B) Elementary Decision Implementation
C) Electronic Data Interchange
D) Electronic Distance Interface

Question 27

One trend that is becoming clear in purchasing, logistics, and support activities is the shift away from hierarchical structures toward _____ structures.

A) vertical
B) horizontal
C) network
D) bottom-up

Question 28

The _____ has been the coordinating body for standards in the United States since 1918.

A) Association for Computing Machinery
B) Institute of Electronic and Electrical Engineers
C) American National Standards Institute
D) Institution of Engineering and Technology

Question 29

The roots of Web technology for business-to-business transactions lie in a hierarchically structured approach to inter-firm information transfer called _____.

A) power line communication
B) data terminal interoperation
C) object technology
D) electronic data interchange

Question 30

Most Electronic Data Interchange-Internet Integration (EDIINT) exchanges today are encoded using the _____ specification.

A) Applicability Statement 1 (AS1)
B) Applicability Statement 3 (AS3)
C) Applicability Statement 2 (AS2)
D) Applicability Statement 4 (AS4)

Question 31

_____ requires each business in the network to operate its own on-site electronic data interchange (EDI) translator computer.

A) Open EDI
B) Direct connection EDI
C) Internet EDI
D) Web EDI

Question 32

A vertical portal is an industry-focused hub that offers services to more than one industry.

Question 33

In _____, the company negotiates long-term contracts for most of the materials that it will need.

A) replenishment purchasing
B) blanket purchasing
C) spot purchasing
D) tactical purchasing

Question 34

By coordinating the efforts of supply chain participants, firms that engage in supply chain management are reaching beyond the limits of their own organization's hierarchical structure and creating a new network form of organization among the members of the supply chain.

Question 35

By engaging suppliers in cooperative, long-term relationships, companies have found that they can work together with these suppliers to identify new ways to provide their own customers with faster, cheaper, and better services.

Question 36

_____ is the intentional collection, classification, and dissemination of information about a company, its products, and its processes.

A) Database management
B) Knowledge management
C) Intelligence warehousing
D) Data mining

Question 37

The classic objective of _____ is to provide the right goods in the right quantities in the right place at the right time.

A) procurement
B) logistics
C) marketing
D) production

Question 38

The ultimate goal of supply chain management is to achieve a higher-quality or lower-cost product at the end of the chain.

Question 39

_____ generally includes all purchasing activities, plus the monitoring of all elements of purchase transactions.

A) Procurement
B) Logistics
C) Distribution
D) Sales

Question 40

_____ activities include managing the inbound movements of materials and supplies and the outbound movements of finished goods and services.

A) Procurement
B) Logistics
C) Transaction
D) Production

Question 41

_____ give individual managers the ability to make multiple small purchases at their discretion while providing cost-tracking information to the procurement office.

Question 42

MRO is the acronym for maintenance, repair, and _____.

Question 43

Since electronic data interchange (EDI) transactions are business contracts and often involve large amounts of money, the existence of an independent audit log helps establish _____.

A) secrecy
B) abrogation
C) nonrepudiation
D) privacy

Question 44

_____ are business-to-business (B2B) marketplace models used in electronic commerce.

A) Independent exchanges
B) Industry marketplaces
C) Public marketplaces
D) Customer portals

Question 45

_____ allows trading partners to pass messages through a value-added network instead of connecting their computers directly to each other.

A) Indirect connection EDI
B) Direct connection EDI
C) Wireless EDI
D) Repeated EDI

Question 46

A(n) _____ is a marketplace formed by several large buyers in a particular industry.

A) private company marketplace
B) independent industry marketplace
C) industry consortia-sponsored marketplace
D) customer portals marketplace

Question 47

A(n) _____ is a marketplace that provides auctions, request for quote postings, and other features to companies that want to operate their own marketplaces.

A) private store
B) independent industry marketplace
C) customer portal
D) private company marketplace

Question 48

Some researchers use the term "_____" instead of "supply chain" because many industry value chains include many parallel lines that are interconnected in a network configuration made up of strategic alliances or complex configurations of outsourcing contracts.

Question 49

Businesses that engage in supply chain management work to establish long-term relationships with a small number of very capable suppliers who are called _____.

A) tier-one suppliers
B) primary suppliers
C) secondary suppliers
D) tier-two alliances

Question 50

_____ business processes include activities such as making payments, processing payments received from customers, planning capital expenditures, and budgeting and planning to ensure that sufficient funds will be available to meet the organization's obligations as they come due.

Question 51

_____ are those materials that become part of the finished product in a manufacturing process.

Question 52

The total dollar amount of the goods and services that a company buys during a year is called its _____.

Question 53

In _____ purchasing, by negotiating contracts in advance, companies can obtain low prices and good delivery terms.

Question 54

The long-term relationships that are created among participants in the supply chain are called _____.

A) quality partnerships
B) JIT alliances
C) supply alliances
D) joint partnerships

Question 55

When companies integrate their supply management and logistics activities across multiple participants in a particular product's supply chain, the job of managing that integration is called _____.

A) supply chain management
B) supply intelligence management
C) supply resource planning
D) supply workflow planning

Question 56

_____ processes include activities such as hiring, training, and evaluating employees; administering benefits; and complying with government record-keeping regulations.

Question 57

Offshoring nonmanufacturing activities such as purchasing, research and development, recordkeeping, and information management is called _____.

Question 58

A(n) _____ is a business-to-business (B2B) marketplace model that has a password-protected entrance and offers negotiated price reductions on a limited selection of products.

A) industry marketplace
B) public marketplace
C) private store
D) independent exchange

Question 59

Electronic data interchange (EDI) on the Internet is also called _____.

A) open EDI
B) closed EDI
C) linked EDI
D) digital EDI

Question 60

The U.S. government's Bureau of Public Debt operates the _____ site, which allows individuals to buy savings bonds and financial institutions to buy treasury bills, bonds, and notes.

Question 61

A(n) _____ is a company that provides communications equipment, software, and skills needed to receive, store, and forward electronic messages that contain electronic data interchange (EDI) transaction sets.

Question 62

Vertical portals consisting of industry marketplaces, independent exchanges, and public marketplaces are known collectively as _____ marketplaces.

Question 63

Differentiate between direct and indirect materials.

Question 64

A(n) _____ system is a service that banks use to manage their accounts with each other.

Question 65

A(n) _____ is the movement of money from one bank account to another.

Question 66

Buying products from loosely organized markets is called _____.

Question 67

_____ is the ability to establish that a particular transaction actually occurred.

Question 68

Firms that exchange data in specific standard formats of electronic data interchange are said to be _____.

Question 69

List the advantages of using Internet technologies in supply chain management.

Question 70

A(n) _____ is a vertical portal which is not controlled by a company that is an established buyer or seller in the industry.

Question 71

The use of other organizations to perform specific activities is called _____.

Question 72

_____ are vertical portals which are open to new buyers and sellers just entering the industry.

Question 73

What are the advantages of using value-added networks (VANs)?

Question 74

_____ are the names of the formats for specific business data interchanges.

Question 75

Companies in industries with long supply chains have, in the past, often found it difficult to maintain customer focus, which is sometimes called a(n) _____.

Question 76

_____ are small chips that use radio transmissions to track inventory.

Question 77

_____ prevents either party involved in an electronic data interchange (EDI) transaction from denying the transaction's validity or existence.

Question 78

What is the difference between indirect connection electronic data interchange (EDI) and direct connection electronic data interchange (EDI)?

Question 79

Differentiate between purchasing activities and procurement activities.

Question 80

_____ tags can be placed anywhere on or in most items and are readable even when covered with packing materials, dirt, or plastic bands.