Exam

Name___________________________________

1.
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:
True

False
Dif: 1
Type: TF
Page Ref: 580
AACSB:
Objective:

2.
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:

True
False
Dif: 2
Type: TF
Page Ref: 582
AACSB:
Objective:

3.
Order fulfllment refers only to providing customers with what they have ordered and doing so on time.
Answer:
True

False
Dif: 2
Type: TF
Page Ref: 582
AACSB:
Objective:

4.
Back-ofce operations are activities that support fulfllment of orders, such as packing, delivery, accounting, and logistics.
Answer:

True
False
Dif: 2
Type: TF
Page Ref: 582
AACSB:
Objective:

5.
Logistics is the process of planning, implementing, and controlling the efcient and efective fow and storage of goods,
services, and related information from point of origin to point of consumption to meet customer requirements.
Answer:

True
False
Dif: 1
Type: TF
Page Ref: 582
AACSB:
Objective:

6.
EC logistics, or e-logistics, refers to the logistics of EC systems mainly in B2B.
Answer:
True

False
Dif: 2
Type: TF
Page Ref: 582
AACSB:
Objective:

7.
When compared to traditional logistics, the inventory fow for e-logistics is usually unidirectional.
Answer:
True

False
Dif: 2
Type: TF
Page Ref: 583
AACSB:
Objective:

8.
When compared to traditional logistics, the transporter for e-logistics is frequently the same company.
Answer:
True

False
Dif: 2
Type: TF
Page Ref: 583
AACSB:
Objective:

9.
The movement of returns from customers to vendors is known as negative logistics.
Answer:
True

False
Dif: 2
Type: TF
Page Ref: 585
AACSB:
Objective:

10.
The order fulfllment process difers between B2B and B2C activities, between the delivery of goods and of services, and
between small and large products.
Answer:

True
False
Dif: 2
Type: TF
Page Ref: 585
AACSB:
Objective:

11.
The inability to deliver products on time is a typical problem in ofine commerce, but not online commerce.
Answer:
True

False
Dif: 2
Type: TF
Page Ref: 586
AACSB:
Objective:

12.
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:

True
False
Dif: 2
Type: TF
Page Ref: 586
AACSB:
Objective:

13.
The distribution network confguration is a major management issue in supply chain management.
Answer:

True
False
Dif: 2
Type: TF
Page Ref: 586
AACSB:
Objective:

14.
Outsourcing collaborators are external, rather than in-house, providers of logistics services.
Answer:
True

False
Dif: 2
Type: TF
Page Ref: 586
AACSB:
Objective:

15.
Electronic payments can expedite both the order fulfllment cycle and the payment delivery period. With such systems,
payment processing can be signifcantly more expensive and fraud is harder to control.
Answer:
True

False
Dif: 2
Type: TF
Page Ref: 588
AACSB:
Objective:

16.
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:

True
False
Dif: 2
Type: TF
Page Ref: 588
AACSB:
Objective:

17.
An efcient solution to many supply chain problems is to change the supply chain structure from a hub to a linear
structure.
Answer:
True

False
Dif: 2
Type: TF
Page Ref: 589
AACSB:
Objective:

18.
An efective way to solve order fulfllment problems is for an organization to partner with UPS, FedEx, or other shippers.
Answer:

True
False
Dif: 1
Type: TF
Page Ref: 591
AACSB:
Objective:

19.
The ability to easily change the logistics provider is one advantage of outsourcing.
Answer:

True
False
Dif: 1
Type: TF
Page Ref: 591
AACSB:
Objective:

20.
IBM pioneered the production of the components of computers via mass production and to ofer customization in their
assembly.
Answer:
True

False
Dif: 1
Type: TF
Page Ref: 593
AACSB:
Objective:

21.
Allowing for the return of unwanted merchandise and providing for product exchanges are necessary to maintain
customers' trust and loyalty.
Answer:

True
False
Dif: 2
Type: TF
Page Ref: 593
AACSB:
Objective:

22.
B2B order fulfllment commonly uses business process management software to automate various steps in the process.
Answer:

True
False
Dif: 2
Type: TF
Page Ref: 594
AACSB:
Objective:

23.
Supplychainer.com (2006) recommends automating your pickings as one of seven elements for optimal order fulfllment.
Answer:

True
False
Dif: 2
Type: TF
Page Ref: 595
AACSB:
Objective:

24.
Visibility decreases along the supply chain.
Answer:
True

False
Dif: 1
Type: TF
Page Ref: 596
AACSB:
Objective:

25.
Merge-in-transit is a model in which components for a product come from two or more diferent 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:

True
False
Dif: 2
Type: TF
Page Ref: 597
AACSB:
Objective:

26.
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:

True
False
Dif: 2
Type: TF
Page Ref: 597
AACSB:
Objective:

27.
RFID and CPFR were found efective for improving supply chains and reducing problems along them.
Answer:

True
False
Dif: 1
Type: TF
Page Ref: 598
AACSB:
Objective:

28.
A major problem in order fulfllment is the demand forecast.
Answer:
True

False
Dif: 2
Type: TF
Page Ref: 602
AACSB:
Objective:

29.
The goal of CPFR is to streamline product fow from manufacturing plants all the way to customers' homes.
Answer:

True
False
Dif: 2
Type: TF
Page Ref: 602
AACSB:
Objective:

30.
B2Business.net is a directory that contains listings of B2B services organized by type of service.
Answer:
True

False
Dif: 2
Type: TF
Page Ref: 605
AACSB:
Objective:

31.
iEntry is a search engine that locates information and aggregates B2B news.
Answer:
True

False
Dif: 2
Type: TF
Page Ref: 606
AACSB:
Objective:

32.
Trademark and domain names are types of EC support services.
Answer:

True
False
Dif: 2
Type: TF
Page Ref: 606
AACSB:
Objective:

33.
Partnet, Travelocity, and Autobytel are marketplace concentrators.
Answer:
True

False
Dif: 2
Type: TF
Page Ref: 607
AACSB:
Objective:

34.
Ameritrade is an example of a transaction broker.
Answer:

True
False
Dif: 2
Type: TF
Page Ref: 607
AACSB:
Objective:

35.
IT is the least frequently outsourced business activity.
Answer:
True

False
Dif: 2
Type: TF
Page Ref: 609
AACSB:
Objective:

36.
Amazon.com's initial business model called for
A)
mobile retailing that had a central warehouse with a large inventory.
B)
virtual retailing that had no warehouses and no inventory.
C)
virtual retailing with two large warehouses in high-volume locations.
D)
mobile retailing that had numerous portable or rented warehouses with small inventories.
Answer:
B
Dif: 2
Type: MC
Page Ref: 580
AACSB:
Objective:

37.
Which of the following is not an EC service?
A)
e-process
B)
e-partnership management
C)
e-markets
D)
e-infrastructure
Answer:
B
Dif: 1
Type: MC
Page Ref: 581
AACSB:
Objective:

38.
Business partners, government, customers, and suppliers are
A)
e-processes.
B)
e-markets.
C)
e-communities.
D)
e-infrastructure.
Answer:
C
Dif: 2
Type: MC
Page Ref: 581
AACSB:
Objective:

39.
E-infrastructure services include each of the following except
A)
systems development.
B)
integration standards.
C)
consulting services.
D)
security.
Answer:
D
Dif: 3
Type: MC
Page Ref: 581
AACSB:
Objective:

40.
Order fulfllment refers to each of the following except
A)
providing price guarantees.
B)
providing customers with what they have ordered.
C)
providing all related customer services.
D)
providing ordered products or services on time.
Answer:
A
Dif: 2
Type: MC
Page Ref: 582
AACSB:
Objective:

41.
Activities that support fulfllment of orders, such as packing, delivery, accounting, and logistics best defnes
A)
order fulfllment.
B)
front-ofce operations.
C)
logistics.
D)
back-ofce operations.
Answer:
D
Dif: 2
Type: MC
Page Ref: 582
AACSB:
Objective:

42.
The business processes, such as sales and advertising, which are visible to customers best defnes
A)
logistics.
B)
order fulfllment.
C)
back-ofce operations.
D)
front-ofce operations.
Answer:
D
Dif: 2
Type: MC
Page Ref: 582
AACSB:
Objective:

43.
The operations involved in the efcient and efective fow and storage of goods, services, and related information from
point of origin to point of consumption best defnes
A)
order fulfllment.
B)
logistics.
C)
back-ofce operations.
D)
front-ofce operations.
Answer:
B
Dif: 2
Type: MC
Page Ref: 582
AACSB:
Objective:

44.
The logistics of EC systems, typically involving small parcels sent to many customers' homes best defnes
A)
e-delivery.
B)
e-fulfllment.
C)
e-shopping.
D)
e-logistics.
Answer:
D
Dif: 2
Type: MC
Page Ref: 582
AACSB:
Objective:

45.
How does traditional logistics typically difer from EC logistics?
A)
EC logistics deals with the movement of large amounts of materials to a few destinations.
B)
EC logistics is more predictable because demand is stable and consistent.
C)
Traditional logistics deals with the movement of large amounts of materials to a few destinations.
D)
Traditional logistic shipments typically are small parcels sent to many customers' homes.
Answer:
A
Dif: 2
Type: MC
Page Ref: 583
AACSB:
Objective:

46.
The administrative activities of order taking and fulfllment involve each of the following except
A)
sales quote.
B)
order confguration.
C)
settlement.
D)
social engineering.
Answer:
D
Dif: 2
Type: MC
Page Ref: 585
AACSB:
Objective:

47.
The movement of returns from customers to vendors best defnes
A)
reverse logistics.
B)
bullwhip logistics.
C)
reverse release.
D)
back fow logistics.
Answer:
A
Dif: 1
Type: MC
Page Ref: 585
AACSB:
Objective:

48.
A major activity related to the supply chain management problem in EC is the
A)
distribution.
B)
demand forecast.
C)
third-party logistics.
D)
order-taking process.
Answer:
B
Dif: 2
Type: MC
Page Ref: 586
AACSB:
Objective:

49.
Factors infuencing demand include
A)
economic conditions.
B)
weather conditions.
C)
competition.
D)
all of the above.
Answer:
D
Dif: 1
Type: MC
Page Ref: 586
AACSB:
Objective:

50.
Major management issues in supply chain management include each of the following except
A)
social engineering.
B)
inventory control.
C)
distribution network confguration.
D)
supply contracts.
Answer:
A
Dif: 1
Type: MC
Page Ref: 586
AACSB:
Objective:

51.
External, rather than in-house providers of logistics services best defnes
A)
outsourced development.
B)
external sourcing.
C)
third-party logistics suppliers.
D)
external settlement.
Answer:
C
Dif: 2
Type: MC
Page Ref: 586
AACSB:
Objective:

52.
Uncertainties, lack of coordination, and an inability or refusal to share information among business partners create EC
________ problems.
A)
product development
B)
shipping and handling
C)
infrastructure
D)
supply chain fulfllment
Answer:
D
Dif: 2
Type: MC
Page Ref: 587
AACSB:
Objective:

53.
Solutions to order fulfllment problems along supply chains include
A)
warehousing and inventory management improvements.
B)
improvements in the order-taking activity.
C)
speeding deliveries.
D)
all of the above.
Answer:
D
Dif: 1
Type: MC
Page Ref: 587-591
AACSB:
Objective:

54.
A software system that helps in managing warehouses best defnes
A)
reverse engineering system.
B)
risk management system.
C)
decision support system.
D)
warehouse management system.
Answer:
D
Dif: 2
Type: MC
Page Ref: 588
AACSB:
Objective:

55.
Order taking can be done via
A)
EDI, EDI/Internet, or the Internet.
B)
EDI, EDI/Internet, the Internet, or an extranet.
C)
the Internet or an extranet, and it may be fully automated.
D)
EDI, EDI/Internet, the Internet, or an extranet, and it may be fully automated.
Answer:
D
Dif: 3
Type: MC
Page Ref: 588
AACSB:
Objective:

56.
Implementing linkages between order-taking and payment systems can improve order fulfllment. Electronic payments
can expedite both the order fulfllment cycle and the payment delivery period. With such systems
A)
payment processing can be signifcantly less expensive, and fraud can be better controlled.
B)
payment processing can be signifcantly less expensive, but fraud is less controlled.
C)
payment processing costs remain the same, but fraud can be better controlled.
D)
payment processing can be signifcantly more expensive, but fraud can be better controlled.
Answer:
A
Dif: 3
Type: MC
Page Ref: 588
AACSB:
Objective:

57.
Benefts of warehouse management systems include each of the following except
A)
reducing inventory.
B)
managing receiving.
C)
decreasing the incidence of out-of-stocks.
D)
increasing the bullwhip efect.
Answer:
D
Dif: 2
Type: MC
Page Ref: 588
AACSB:
Objective:

58.
Automated warehouses include each of the following except
A)
mass customization.
B)
robots.
C)
devices that expedite product pickup.
D)
RFID and wireless technologies.
Answer:
A
Dif: 2
Type: MC
Page Ref: 588-589
AACSB:
Objective:

59.
Which of the following was used by Shurman Fine Papers to improve its demand forecast and minimize both out-of-
stocks and overstocking?
A)
TrueShip
B)
RedPrairie
C)
IntelliTrack
D)
SQL Server
Answer:
B
Dif: 2
Type: MC
Page Ref: 589
AACSB:
Objective:

60.
Keys to successful inventory management include
A)
superior management.
B)
employee satisfaction.
C)
low cost.
D)
efciency.
Answer:
D
Dif: 2
Type: MC
Page Ref: 589
AACSB:
Objective:

61.
An efective way to solve order fulfllment problems is for an organization to
A)
build more local warehouses.
B)
partner with other companies, such as UPS, or distribution centers.
C)
reduce the variety or types of products being sold.
D)
use AutoCart.
Answer:
B
Dif: 2
Type: MC
Page Ref: 591
AACSB:
Objective:

62.
Intermediaries that prepare goods for shipping best describes
A)
fulfllers.
B)
vendors.
C)
collaborators.
D)
forwarders.
Answer:
D
Dif: 2
Type: MC
Page Ref: 591
AACSB:
Objective:

63.
The pioneering approach by ________ was to produce the components of computers via mass production and to ofer
customization in the manner in which they were assembled.
A)
Gateway
B)
Intel
C)
IBM
D)
Dell
Answer:
D
Dif: 2
Type: MC
Page Ref: 593
AACSB:
Objective:

64.
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)
delay in receiving products
D)
inability to compare products
Answer:
A
Dif: 2
Type: MC
Page Ref: 593
AACSB:
Objective:

65.
Each of the following is characteristic of order fulfllment except
A)
fexible systems are needed because customers might change an order after the order is sent to the warehouse.
B)
B2B order fulfllment commonly uses business processes management (BPM) software to automate various steps in the
process.
C)
customers pressure suppliers to improve the order fulfllment process.
D)
B2C fulfllment may be more complex than that of B2B.
Answer:
D
Dif: 2
Type: MC
Page Ref: 594-595
AACSB:
Objective:

66.
According to Supplychainer.com (2006), the seven elements for optimal order fulfllment include each of the following
except
A)
incorporate sales and marketing into the process.
B)
integrate your systems.
C)
utilize social engineering sites as much as possible.
D)
reduce or eliminate paperwork.
Answer:
C
Dif: 2
Type: MC
Page Ref: 595
AACSB:
Objective:

67.
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 defnes
A)
product placement.
B)
verifcation.
C)
risk avoidance.
D)
visibility.
Answer:
D
Dif: 2
Type: MC
Page Ref: 596
AACSB:
Objective:

68.
Merge-in-transit and rolling warehouses are examples of
A)
business process management.
B)
B2C fulfllment.
C)
order fulfllment in services.
D)
logistics postponement.
Answer:
D
Dif: 3
Type: MC
Page Ref: 597
AACSB:
Objective:

69.
A logistics model in which components for a product may come from two or more diferent physical locations and are
shipped directly to the customer's location best defnes
A)
B2C fulfllment.
B)
merge-in-transit.
C)
rolling warehousing.
D)
business process management.
Answer:
B
Dif: 2
Type: MC
Page Ref: 597
AACSB:
Objective:

70.
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)
bullwhip efect.
B)
merge-in-transit.
C)
rolling warehouse.
D)
reverse logistics system.
Answer:
C
Dif: 2
Type: MC
Page Ref: 597
AACSB:
Objective:

71.
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 day's
B)
week; 1 week's
C)
12 hours; 12 hours'
D)
2 hours; 2 hours'
Answer:
D
Dif: 2
Type: MC
Page Ref: 597
AACSB:
Objective:

72.
According to Melnyk, et al. 2010, supply chains of tomorrow must deliver varying degrees of
A)
innovation.
B)
safety and security of goods delivered.
C)
eliminating waste, reducing pollution, and improving the environment.
D)
all of the above.
Answer:
D
Dif: 2
Type: MC
Page Ref: 598
AACSB:
Objective:

73.
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 defnes
A)
wireless router.
B)
location chips.
C)
goods locator chip.
D)
radio frequency identifcation.
Answer:
D
Dif: 2
Type: MC
Page Ref: 599
AACSB:
Objective:

74.
Project in which suppliers and retailers collaborate in their planning and demand forecasting to optimize fow of materials
along the supply chain best describes
A)
customer relationship management.
B)
transaction management systems.
C)
directory services.
D)
collaborate planning, forecasting, and replenishment.
Answer:
D
Dif: 2
Type: MC
Page Ref: 602
AACSB:
Objective:

75.
Consulting frm categories include
A)
traditional consulting companies that maintain divisions that focus on EC.
B)
frms that provide expertise in the area of EC but not in traditional business.
C)
EC hardware and software vendors that provide technology-consulting services.
D)
all of the above.
Answer:
D
Dif: 2
Type: MC
Page Ref: 604-605
AACSB:
Objective:

76.
Which of the following is a large business directory organized by location and by product or service?
A)
ThomasNet
B)
A2Z of B2B
C)
Websters
D)
i-Stores
Answer:
C
Dif: 3
Type: MC
Page Ref: 606
AACSB:
Objective:

77.
Which of the following B2B services creates revenue by providing content?
A)
transaction brokers
B)
content providers
C)
specialized directories
D)
marketplace concentrators
Answer:
B
Dif: 2
Type: MC
Page Ref: 607
AACSB:
Objective:

78.
Which of the following matches business clients with frms that provide a wide variety of IT services?
A)
TechRepublic
B)
Lotus Domino
C)
VeriSign
D)
Bizrate
Answer:
A
Dif: 2
Type: MC
Page Ref: 607
AACSB:
Objective:

79.
Which of the following aggregates information about products and services from multiple providers at one central point?
A)
marketplace concentrator
B)
collaborators
C)
content provider
D)
transaction broker
Answer:
A
Dif: 2
Type: MC
Page Ref: 607
AACSB:
Objective:

80.
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)
transaction broker.
B)
application service provider.
C)
forwarder.
D)
collaborator.
Answer:
B
Dif: 2
Type: MC
Page Ref: 609
AACSB:
Objective: