Each corporate purchase order for support products costs, on average, at least ________ in administrative overhead.
$100
An ________ primarily serves businesses that primarily buy direct goods on a contract purchasing basis.
industry consortium
Which of the following was the first step in the development of B2B commerce?
automated order entry systems
Which of the following was not a development in the second stage of EDI's evolution?
replacement of the postal system
A single supplier making an online catalog of products available to the public marketplace is called a(n):
B2B electronic storefront.
Automated order entry systems are ________ solutions.
seller-side
Which of the following primarily serve horizontal markets?
e-distributors and e-procurement Net marketplaces
The last step in the procurement process is:
sending a remittance payment.
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.
True
Which of the following is not an objective of a private industrial network?
obtaining equity participation in the network from other major firms in the industry
EDI B2B e-commerce is the most rapidly growing type of B2B e-commerce.
False
An ________ primarily serves businesses that primarily buy direct goods on a spot purchasing basis.
exchange
A transorganizational business process requires at least two independent firms to perform.
True
Exchanges have proven successful in providing additional value-added services that transform the value chain for the entire industry.
False
E-distributors operate in horizontal markets.
True
MRO goods are also known as indirect goods.
True
Demand chain visibility is one goal of collaborative commerce.
True
Wood pulp purchased by a paper manufacturer is an example of:
direct goods.
An ________ primarily serves businesses that primarily buy indirect goods on a contract purchasing basis.
e-procurement Net marketplace
All of the following are methods of classifying Net marketplaces except:
by technology used.
Electronic Data Interchange (EDI) systems are seller-side solutions.
False
Exchanges have failed primarily because:
suppliers have refused to join them.
Private industrial networks are direct descendants of:
existing EDI networks.
Private industrial networks provide few, if any, advantages for suppliers.
False
Which of the following is another name for a private industrial network?
PTX
________ is another name for transorganizational business processes.
Collaborative commerce
Which of the following primarily deal with direct goods?
exchanges and industry consortia
Exchanges tend to be biased toward the seller even though they are independently owned and presumably neutral.
False
Industry consortia are typically seller-biased.
False
An ________ provides electronic catalogs that represent the products of thousands of direct manufacturers.
e-distributor
An e-procurement Net marketplace is sometimes referred to as a:
many-to-many market.
Which of the following is not a typical barrier to the implementation of a private industrial network?
It requires the large network owners to give up some of its independence.
Which of the following primarily deal with indirect goods?
e-distributors and e-procurement Net marketplaces
All of the following are major developments in supply chain management except:
materials requirement planning.
Net marketplaces focus on continuous business process coordination between companies while private industrial networks are primarily transaction-based.
False
An ________ is an independently owned, online marketplace that connects hundreds to potentially thousands of suppliers and buyers in a dynamic, real-time environment.
exchange
What is the first step in the procurement process?
search for suppliers
Which of the following primarily involve long-term sourcing?
e-procurement Net marketplaces and industry consortia
The term B2B commerce refers to all types of computer-enabled interfirm trade.
True
An ________ is an independently owned intermediary connecting hundreds of online suppliers offering millions of maintenance and repair products to business firms that pay fees to join the market.
e-procurement Net marketplace
The majority of interfirm trade involves:
contract purchasing of direct goods.
An example of an indirect good in the fast-food industry is:
fax paper.
The use of Internet-based B2B solutions promises to significantly reduce administrative costs of engaging in interfirm trade.
True
Which of the following terms refers to the total flow of value among firms?
total interfirm trade
Private industrial networks are the largest form of B2B e-commerce.
True
________ is a method for ensuring that suppliers precisely deliver ordered parts at a specific time and to a particular location.
Tight coupling
An ________ primarily serves businesses that buy indirect goods on a spot purchasing basis.
e-distributor
Which of the following does not have a primary impact on the liquidity of a market?
price transparency
Most industry groups are moving toward which language for expressing EDI documents and communications?
XML
Which of the following is not a pricing mechanism typically used by Net marketplaces?
utilization pricing
All of the following statements about EDI are true except:
EDI systems generally serve horizontal markets.
All of the following are weaknesses of EDI except:
EDI lacks universal standards.
A method of inventory cost management that seeks to eliminate excess inventory is known as:
