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

Question 1

When EFTs involve two banks, they are executed using a VAN.

Answer 1

False

Question 2

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.

Answer 2

True

Question 3

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

Answer 3

False

Question 4

Governments perform many functions for their stakeholders.

Question 5

In the past, the up-front cost of implementing indirect connection EDI, including software, VAN enrollment fee, and hardware, typically exceeded $500,000.

Question 6

Most B2C electronic commerce is an adaptation of EDI.

Question 7

In many companies, procurement staff need not have high levels of product knowledge to identify and evaluate appropriate suppliers.

Question 8

ANSI does not set standards, but it maintains procedures for the development of national standards and accredits committees that follow those procedures.

Question 9

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

Question 10

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

Question 11

In the past, most VANs did not require an enrollment fee.

Question 12

EDI increases the paper flow, but streamlines the interchange of information among departments within a company.

Question 13

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 14

The ASC X12 organization and the UN/EDIFACT group agreed in 2000 to develop one common set of international standards, but this undertaking was not successful.

Question 15

Because of advances in computer technology, most businesses do not need to buy office supplies or the services of freight and transportation companies.

Question 16

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

Question 17

EDI was the first form of electronic commerce to be widely used in business.

Question 18

FedEx and UPS have freight-tracking available to their customers.

Question 19

Businesses make a distinction between direct and indirect materials.

Question 20

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

Question 21

EDI is the acronym for ____.

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

Question 22

____ requires each business in the network to operate its own on-site EDI translator computer.

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

Question 23

Ventro opened its first industry marketplace, Chemdex, in early 1987.

Question 24

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)transaction processing
D)production

Question 25

Firms that exchange data in specific standard formats are said to be ____.

A)standard codes
B)EDI compatible
C)common
D)protocol

Question 26

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

Question 27

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

A)record-keeping
B)auditing
C)training
D)regulation

Question 28

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

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

Question 29

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 30

A passive RFID tag does not need a power source.

Question 31

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

A)client/server
B)TCP/IP
C)object technology
D)electronic data interchange

Question 32

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)matrix

Question 33

The ____ has been the coordinating body for standards in the U.S.since 1918.

A)ACM
B)IEEE
C)ANSI
D)DPMA

Question 34

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

Question 35

In 1979, ANSI chartered a new committee to develop uniform EDI standards.This committee is called the ____.

A)ASC X12
B)TSC X15
C)IEEE 2321
D)ASE A23

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)Data warehousing
D)Data mining

Question 37

To use the services of a VAN, a company must install ____ software that is compatible with the VAN.

A)network compiler
B)LAN interpreter
C)EDI translator
D)VAN router

Question 38

____ 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 39

With respect to EDIs, the two businesses that exchange information are called ____.

A)interaction monitors
B)hand-shakers
C)trading partners
D)collaborators

Question 40

The Web is enabling the shift from hierarchical to network forms of _____.

A)economic organization
B)social organization
C)community organization
D)relationship management

Question 41

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 42

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

Question 43

The major issue that most companies must deal with in forming supply chain alliances is developing ____.

A)standard procedures
B)open communication channels
C)network relationships
D)trust

Question 44

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

Question 45

Because EDI transactions are business contracts and often involve large amounts of money, the existence of an independent audit log helps establish ____.

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

Question 46

One way that Procurement Departments control MRO spending is by issuing ____________________.

Question 47

____ allows trading partners to pass messages through the VAN instead of connecting their computers directly to each other.

A)Indirect connection EDI
B)Direct connection EDI
C)Loop EDI
D)VAN EDI

Question 48

A ____ 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)customer portals marketplace
C)private exchange
D)private company marketplace

Question 49

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)procurement management
C)enterprise resource planning
D)total quality management

Question 50

Some researchers who study the interaction of firms within an industry value chain are beginning to use the term "supply ____________________" instead of "supply chain."

Question 51

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

Question 52

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

A)quality partners
B)JIT alliances
C)supply alliances
D)joint suppliers

Question 53

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

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

Question 54

Finance and ____________________ 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 55

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

Question 56

A(n)____ has a password-protected entrance and offers negotiated price reductions on a limited selection of products.

A)customer portals marketplace
B)public marketplace
C)private store
D)independent exchange

Question 57

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

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

Question 58

____________________ materials include factory supplies, such as sandpaper, hand tools, and replacement parts for manufacturing machinery.

Question 59

EDI on the Internet is also called ____.

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

Question 60

The use of Internet technologies in procurement activities is called ____________________.

Question 61

Instead of connecting directly to each of its trading partners, a company might decide to use the services of a(n)____________________.

Question 62

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

Question 63

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

Question 64

____________________ prevents either party from denying the transaction's validity or existence.

Question 65

A(n)____________________ has a password-protected entrance and offers negotiated price reductions on a limited selection of products-usually those that the customer has agreed to purchase in certain minimum quantities.

Question 66

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

Question 67

____________________ marketplaces are open to new buyers and sellers just entering the industry.

Question 68

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

Question 69

____________________ exchanges are not controlled by a company that is an established buyer or seller in the industry.

Question 70

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

Question 71

A(n)____________________ marketplace is a marketplace that provides auctions, request for quote postings, and other features (many of which are similar to those of e-procurement software)to companies that want to operate their own marketplaces.

Question 72

What are the advantages of using a value-added network?

Question 73

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

Question 74

What is the difference between direct and indirect materials?

Question 75

What are purchasing activities and how are they different from procurement?

Question 76

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

Question 77

What is the difference between indirect connection EDI and direct connection EDI?

Question 78

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

Question 79

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

Question 80

One of the main goals of ____________________ is to help each company in the chain focus on meeting the needs of the consumer at the end of the supply chain.