Electronic Commerce 2012 7E Test Bank Chapter 11

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Electronic Commerce 2012, 7e (Turban) Chapter 11 Order Fulfillment Along the

Supply Chain and Other EC Support Services 11.1 True/False Question: When

Amazon.com launched in 1995, its business model called for virtual retailing that had no

warehouses, no inventory, and no shipments. This model proved to work well for very

large e-tailers. Answer:

Question: One issue typical to EC is that EC is based on the concept of pull operations that

begin with an order, frequently a customized one. Answer:

Question: Order fulfillment refers only to providing customers with what they have

ordered and doing so on time. Answer:

Question: Back-office operations are activities that support fulfillment of orders, such as

packing, delivery, accounting, and logistics. Answer:

Question: Logistics is the process of planning, implementing, and controlling the efficient

and effective flow and storage of goods, services, and related information from point of

origin to point of consumption to meet customer requirements. Answer:

Question: EC logistics, or e-logistics, refers to the logistics of EC systems mainly in B2B.

Answer:

Question: When compared to traditional logistics, the inventory flow for e-logistics is

usually unidirectional. Answer:

Question: When compared to traditional logistics, the transporter for e-logistics is

frequently the same company. Answer:

Question: The movement of returns from customers to vendors is known as negative

logistics. Answer:

Question: The order fulfillment process differs between B2B and B2C activities, between

the delivery of goods and of services, and between small and large products. Answer:

Question: The inability to deliver products on time is a typical problem in offline

commerce, but not online commerce. Answer:

Question: Pure EC companies are likely to have more problems because they do not have a

logistics infrastructure already in place and are forced to use external logistics services

rather than in-house departments for these functions. Answer:

Question: The distribution network configuration is a major management issue in supply

chain management. Answer:

Question: Outsourcing collaborators are external, rather than in-house, providers of

logistics services. Answer:

Question: Electronic payments can expedite both the order fulfillment cycle and the

payment delivery period. With such systems, payment processing can be significantly

more expensive and fraud is harder to control. Answer:

Question: Allowing business partners to electronically track and monitor inventory levels

and production activities can improve inventory management and inventory levels, as well

as minimize the administrative expenses of inventory management. Answer:

Question: An efficient solution to many supply chain problems is to change the supply

chain structure from a hub to a linear structure. Answer:

Question: An effective way to solve order fulfillment problems is for an organization to

partner with UPS, FedEx, or other shippers. Answer:

Question: The ability to easily change the logistics provider is one advantage of

outsourcing. Answer:

Question: IBM pioneered the production of the components of computers via mass

production and to offer customization in their assembly. Answer:

Question: Allowing for the return of unwanted merchandise and providing for product

exchanges are necessary to maintain customers trust and loyalty. Answer:

Question: B2B order fulfillment commonly uses business process management software to

automate various steps in the process. Answer:

Question: Supplychainer.com (20

Question: recommends automating your pickings as one of seven elements for optimal

order fulfillment. Answer:

Question: Visibility decreases along the supply chain. Answer:

Question: Merge-in-transit is a model in which components for a product come from two

or more different physical locations. For example, in shipping a desktop PC, the monitor

may come from the East Coast of the United States and the CPU from the West Coast.

Answer:

Question: With a rolling warehouse, products on the delivery truck are not preassigned to a

retailer, but the decision about the quantity to unload at each destination is made at the

time of unloading, which lowers logistics costs. Answer:

Question: RFID and CPFR were found effective for improving supply chains and reducing

problems along them. Answer:

Question: A major problem in order fulfillment is the demand forecast. Answer:

Question: The goal of CPFR is to streamline product flow from manufacturing plants all

the way to customers homes. Answer:

Question: B2Business.net is a directory that contains listings of B2B services organized by

type of service. Answer:

Question: iEntry is a search engine that locates information and aggregates B2B news.

Answer:

Question: Trademark and domain names are types of EC support services. Answer:

Question: Partnet, Travelocity, and Autobytel are marketplace concentrators. Answer:

Question: Ameritrade is an example of a transaction broker. Answer:

Question: IT is the least frequently outsourced business activity. Answer:

Question: Amazon.coms initial business model called for A) mobile retailing that had

numerous portable or rented warehouses with small inventories. B) virtual retailing that

had no warehouses and no inventory. C) mobile retailing that had a central warehouse with

a large inventory. D) virtual retailing with two large warehouses in high-volume locations.

Answer:

Question: Which of the following is not an EC service? A) e-partnership management B)

e-infrastructure C) e-process D) e-markets Answer:

Question: Business partners, government, customers, and suppliers are A) e-markets. B)

e-processes. C) e-communities. D) e-infrastructure. Answer:

Question: E-infrastructure services include each of the following except A) security. B)

consulting services. C) integration standards. D) systems development. Answer:

Question: Order fulfillment refers to each of the following except A) providing customers

with what they have ordered. B) providing ordered products or services on time. C)

providing all related customer services. D) providing price guarantees. Answer:

Question: Activities that support fulfillment of orders, such as packing, delivery,

accounting, and logistics best defines A) order fulfillment. B) front-office operations. C)

back-office operations. D) logistics. Answer:

Question: The business processes, such as sales and advertising, which are visible to

customers best defines A) order fulfillment. B) front-office operations. C) back-office

operations. D) logistics. Answer:

Question: The operations involved in the efficient and effective flow and storage of goods,

services, and related information from point of origin to point of consumption best defines

A) order fulfillment. B) front-office operations. C) back-office operations. D) logistics.

Answer:

Question: The logistics of EC systems, typically involving small parcels sent to many

customers homes best defines A) e-logistics. B) e-shopping. C) e-delivery. D)

e-fulfillment. Answer:

Question: How does traditional logistics typically differ from EC logistics? A) EC logistics

deals with the movement of large amounts of materials to a few destinations. B)

Traditional logistics deals with the movement of large amounts of materials to a few

destinations. C) EC logistics is more predictable because demand is stable and consistent.

D) Traditional logistic shipments typically are small parcels sent to many customers

homes. Answer:

Question: The administrative activities of order taking and fulfillment involve each of the

following except A) sales quote. B) social engineering. C) order configuration. D)

settlement. Answer:

Question: The movement of returns from customers to vendors best defines A) back flow

logistics. B) reverse release. C) reverse logistics. D) bullwhip logistics. Answer:

Question: A major activity related to the supply chain management problem in EC is the A)

demand forecast. B) distribution. C) third-party logistics. D) order-taking process. Answer:

Question: Factors influencing demand include A) economic conditions. B) competition. C)

weather conditions. D) all of the above. Answer:

Question: Major management issues in supply chain management include each of the

following except A) distribution network configuration. B) inventory control. C) supply

contracts. D) social engineering. Answer:

Question: External, rather than in-house providers of logistics services best defines A)

third-party logistics suppliers. B) outsourced development. C) external settlement. D)

external sourcing. Answer:

Question: Uncertainties, lack of coordination, and an inability or refusal to share

information among business partners create EC ________ problems. A) shipping and

handling B) supply chain fulfillment C) product development D) infrastructure Answer:

Question: Solutions to order fulfillment problems along supply chains include A)

improvements in the order-taking activity. B) warehousing and inventory management

improvements. C) speeding deliveries. D) all of the above. Answer:

Question: A software system that helps in managing warehouses best defines A) decision

support system. B) risk management system. C) warehouse management system. D)

reverse engineering system. Answer:

Question: Order taking can be done via A) EDI, EDI/Internet, the Internet, or an extranet,

and it may be fully automated. B) EDI, EDI/Internet, the Internet, or an extranet. C) EDI,

EDI/Internet, or the Internet. D) the Internet or an extranet, and it may be fully automated.

Answer:

Question: Implementing linkages between order-taking and payment systems can improve

order fulfillment. Electronic payments can expedite both the order fulfillment cycle and the

payment delivery period. With such systems A) payment processing can be significantly

more expensive, but fraud can be better controlled. B) payment processing can be

significantly less expensive, and fraud can be better controlled. C) payment processing can

be significantly less expensive, but fraud is less controlled. D) payment processing costs

remain the same, but fraud can be better controlled. Answer:

Question: Benefits of warehouse management systems include each of the following

except A) increasing the bullwhip effect. B) managing receiving. C) decreasing the

incidence of out-of-stocks. D) reducing inventory. Answer:

Question: Automated warehouses include each of the following except A) robots. B) mass

customization. C) devices that expedite product pickup. D) RFID and wireless

technologies. Answer:

Question: Which of the following was used by Shurman Fine Papers to improve its

demand forecast and minimize both out-of-stocks and overstocking? A) SQL Server B)

IntelliTrack C) RedPrairie D) TrueShip Answer:

Question: Keys to successful inventory management include A) low cost. B) superior

management. C) employee satisfaction. D) efficiency. Answer:

Question: An effective way to solve order fulfillment problems is for an organization to A)

build more local warehouses. B) reduce the variety or types of products being sold. C) use

AutoCart. D) partner with other companies, such as UPS, or distribution centers. Answer:

Question: Intermediaries that prepare goods for shipping best describes A) forwarders. B)

collaborators. C) fulfillers. D) vendors. Answer:

Question: The pioneering approach by ________ was to produce the components of

computers via mass production and to offer customization in the manner in which they

were assembled. A) IBM B) Intel C) Gateway D) Dell Answer:

Question: The Boston Consulting Group found that the ________ was the number-two

reason shoppers cited for refusing to buy on the Web frequently. A) absence of a good

return mechanism B) lack of security C) inability to compare products D) delay in

receiving products Answer:

Question: Each of the following is characteristic of order fulfillment except A) B2B order

fulfillment commonly uses business processes management (BPM) software to automate

various steps in the process. B) customers pressure suppliers to improve the order

fulfillment process. C) flexible systems are needed because customers might change an

order after the order is sent to the warehouse. D) B2C fulfillment may be more complex

than that of B2B. Answer:

Question: According to Supplychainer.com (2006), the seven elements for optimal order

fulfillment include each of the following except A) utilize social engineering sites as much

as possible. B) integrate your systems. C) incorporate sales and marketing into the process.

D) reduce or eliminate paperwork. Answer:

Question: The knowledge about where materials and parts are at any given time, which

helps in solving problems such as delay, combining shipments, and more best defines A)

verification. B) visibility. C) risk avoidance. D) product placement. Answer:

Question: Merge-in-transit and rolling warehouses are examples of A) logistics

postponement. B) order fulfillment in services. C) business process management. D) B2C

fulfillment. Answer:

Question: A logistics model in which components for a product may come from two or

more different physical locations and are shipped directly to the customers location best

defines A) rolling warehousing. B) merge-in-transit. C) business process management. D)

B2C fulfillment. Answer:

Question: A logistics method in which products on the delivery truck are not preassigned

to a destination, but the decision about the quantity to unload at each destination is made at

the time of unloading best describes A) rolling warehouse. B) merge-in-transit. C)

bullwhip effect. D) reverse logistics system. Answer:

Question: Using Web services, Dell schedules every line in every factory around the world

every ________, and only brings ________ worth of materials into the factory. A) day; 1

days B) 2 hours; 2 hours C) week; 1 weeks D) 12 hours; 12 hours Answer:

Question: According to Melnyk, et al. 2010, supply chains of tomorrow must deliver

varying degrees of A) safety and security of goods delivered. B) eliminating waste,

reducing pollution, and improving the environment. C) innovation. D) all of the above.

Answer:

Question: Tags that can be attached to or embedded in objects, animals, or humans and use

radio waves to communicate with a reader for the purpose of uniquely identifying the

object or transmitting data and/or storing information about the object best defines A) radio

frequency identification. B) location chips. C) wireless router. D) goods locator chip.

Answer:

Question: Project in which suppliers and retailers collaborate in their planning and demand

forecasting to optimize flow of materials along the supply chain best describes A)

customer relationship management. B) collaborate planning, forecasting, and

replenishment. C) directory services. D) transaction management systems. Answer:

Question: Consulting firm categories include A) firms that provide expertise in the area of

EC but not in traditional business. B) traditional consulting companies that maintain

divisions that focus on EC. C) EC hardware and software vendors that provide

technology-consulting services. D) all of the above. Answer:

Question: Which of the following is a large business directory organized by location and

by product or service? A) i-Stores B) A2Z of B2B C) Websters D) ThomasNet Answer:

Question: Which of the following B2B services creates revenue by providing content? A)

specialized directories B) marketplace concentrators C) transaction brokers D) content

providers Answer:

Question: Which of the following matches business clients with firms that provide a wide

variety of IT services? A) Lotus Domino B) Bizrate C) TechRepublic D) VeriSign Answer:

Question: Which of the following aggregates information about products and services from

multiple providers at one central point? A) transaction broker B) content provider C)

collaborators D) marketplace concentrator Answer:

Question: An agent or vendor who assembles the functions needed by enterprises and

packages them with outsourced development, operation, maintenance, and other services

best describes A) collaborator. B) application service provider. C) transaction broker. D)

forwarder. Answer:

Question: Explain two reasons why an EC companys deliveries to retailers and customers

may be delayed. Answer:

Question: List three logistics characteristics and explain how e-logistics differs from

traditional logistics on each characteristic. Answer:

Question: How can order-taking activity be improved with IT? Discuss two ways and the

benefit of each. Answer:

Question: Define reverse logistics. List five options. Answer:

Question: Identify five reasons why companies prefer to outsource some of the EC support

services. Answer: