Ebusiness A Canadian Perspective For A Networked World Canadian 4th Edition Trites Test Bank

eBusiness A Canadian Perspective for
a Networked World Canadian 4th

Edition Trites Test Bank
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Ebusiness: A Canadian Perspective for a Networked World, 4e
Chapter 7 – Supply-Chain Management
1) Reintermediation can be defined as:

A) a change in the supply chain eliminating the need for an intermediary.
B) a process where companies constantly reinvent themselves in order to survive.
C) the "fundamental rethinking and redesign" of business processes.
D) the process of using the internet to reassemble buyers, sellers, and other
partners in new ways.
E) the reintroduction of a previously obsolete product.
Answer: D
Diff: 2 Type: MC Page Ref: 152
Skill: A Objective: 4
2) What are the key elements for establishing a relationship of trust?

A) realignment, performance measurement, dispute resolution, security
B) realignment, contract negotiations, security, patent protection
C) order fulfillment, system integration, shipping and transportation planning
D) strategy creation, realignment, dispute resolution
E) contract negotiations, supply chain management
Answer: A
Skill: R Objective: 6
3) The travel/airline industry has been completely transformed due to the advent of
internet communication. Customers now:
A) have access to a great deal of information.
B) can book flights in a variety of ways.
C) can make an informed decision.
D) have instant access to fares and schedules.
E) all of the above
Answer: E
Diff: 2 Type: MC Page Ref: 151, 152
4) The warehousing component of the order fulfillment process does not include the
following:
A) receiving
B) picking
C) organizing
D) packaging
E) credit checks
Answer: E
5) There are several forces which have caused major changes within business today.
Which of the following is not mentioned in the textbook as one of those forces?
A) outsourcing
Copyright © 2013 Pearson Canada Inc. 7-1

B) enterprise resource planning

C) mass customization
D) globalization
E) wireless networking
Answer: E
6) Which of the following terms describes a change in the supply chain where the
provider and consumer interact directly with each other to eliminate the need for an
intermediary?
A) encryption
B) reintermediation
C) disintermediation
D) business intelligence
E) reverse logistics
Answer: C
7) _____ is a software tool and technique that has emerged to turn raw data into business
information through data mining.
A) ASP
B) Business Processing
C) Business Intelligence
D) ERP
E) Cloud Computing
Answer: C
8) Early attempts to improve the efficiency of the supply chain made use of the following
for communication between supply chain firms:
A) electronic data interchange
B) CRM
C) ERP
D) Application Service Providers
E) fax and phone
Answer: A
9) What is c-commerce?
A) the continuation of ecommerce
B) customized-commerce
C) chain-commerce

D) collaborative-commerce
E) computer-commerce
Answer: D
10) Supply chain management can best be described as:

A) an age old process for getting customers to buy products.
B) a set of processes for managing a warehouse.
C) the efficient exchange of data between companies.
D) a global phenomenon affecting many countries.
E) a set of processes to optimize product delivery to customers.
Answer: E
11) The internet economy has resulted in numerous changes to the business world.
Supply chain management has:
A) been primarily unaffected by the internet economy.
B) reduced in importance due to the internet economy.
C) increased in importance due to the internet economy.
D) been replaced by computers in the internet economy.
E) followed the same processes despite the internet economy.
Answer: C
12) The following are very important technologies for SCM:

A) extranets, EDI, ERP, and XML
B) EDI, VPNs, and SANs
C) advanced storage devices and EDI
D) shareware and freeware
E) extranets, gopher, and FTP
Answer: A
Diff: 3 Type: MC Page Ref: 153, 154
13) The following is an example of reengineering a process:

A) adding a step to the approval of cheque requisitions
B) removing a step in the approval of purchase orders
C) changing a process from manual to electronic and removing several steps
D) hiring consultants to evaluate workflow
E) implementing EDI with a supplier
Answer: C

14) The implementation of an ERP system may result in the following:

A) less training required for employees
B) a substantial decrease in network usage
C) reduction in manual processes
D) improved decision making
E) business intelligence
Answer: D
15) The use of partners in the supply chain to control and monitor inventory levels is
known as:
A) supply chain management.
B) customer relationship management.
C) warehouse inventory management.
D) just-in-time inventory.
E) vendor-managed inventory.
Answer: E
16) The order fulfillment process must ensure that a business can:
A) manufacture goods rapidly.
B) acquire raw materials efficiently.
C) deliver products quickly.
D) optimize shipping by size/weight/location.
E) all of the above
Answer: E
17) Logistics groups within companies would tend to:

A) have little reliance upon technology.
B) have a great deal of reliance upon technology.
C) spend a great deal of time talking to customers.
D) deliver products door to door.
E) be located offsite.
Answer: B
18) Reverse logistics can be described as:

A) the process of getting suppliers to speed up delivery.
B) a method of back ordering products that are not available.
C) the ability to handle excessive volumes of small products.

D) a means of dealing with returned products.

E) the process of managing incoming materials.
Answer: D
19) Shipping and transportation planning are important to supply chain management.
The following is an example of a task in shipping and transportation planning:
A) analyzing transportation alternatives
B) evaluating where products should be stored within the finished goods
warehouse
C) optimizing the receipt and storage of raw materials
D) providing the accounting department with a list of scheduled production
E) arranging supplier deliveries to the plant
Answer: A
20) Enterprise resource planning systems have the following relationship to SCM:
A) little or no relationship exists
B) SCM systems provide no support to enterprise systems
C) ERP systems provide support and data to SCM systems
D) the ERP system cannot operate if SCM is in place
E) the ERP system can only operate if SCM is in place
Answer: C
21) In terms of supply chain management (SCM), business processes include:

A) procurement processes
B) internal operations
C) sales processes
D) other fundamental processes in the business
E) all of the above
Answer: E
22) Fundamental rethinking and radical redesign of existing processes is also called
________.
A) organizational change
B) business reinvention
C) business process reengineering
D) process recycling
E) data mining
Answer: C


23) A fundamental service provision that documents and defines the parameters of a
supplier-customer relationship is called a:
A) supplier-customer agreement (SCA).
B) supplier-customer provision (SCP).
C) service level agreement (SLA).
D) service provision (SP).
E) supplier-customer bond (SCB).
Answer: C
24) Which of the following represents the front-end and back-end processes necessary to
convert an order into a sale?
A) order processing
B) warehousing
C) shipping and transportation planning
D) order fulfillment
E) production control
Answer: D
25) Which strategy has become important in dealing with reverse logistics?
A) shipping
B) internet
C) supply chain management
D) RFID tags
E) outsourcing
Answer: E
26) In June 2003, Walmart promoted ________ as a SCM efficiency measure aimed at
improving the speed and accuracy of information flows in the supply chain and to
reduce stockouts.
A) business process reengineering
B) reverse logistics
C) cloud computing
D) RFID tags
E) outsourcing
Answer: D

27) _____ is an arrangement whereby companies shift facilities and activities to other
organizations and then integrate them into their global supply chains.
A) vendor-managed inventory
B) application hosting
C) supply chain management
D) offloading
E) outsourcing
Answer: E
28) Retail Link helped Walmart shift responsibility for inventory management from:
A) in-store managers to suppliers.
B) suppliers to in-store managers.
C) managers to cashiers.
D) marketing to operations.
E) procurement to sales.
Answer: A
29) The major difficulty in legacy systems was:

A) cost of implementation and maintenance.
B) outdated technology.
C) coordinating and synchronizing data sets.
D) poor operating systems.
E) inconsistent performance.
Answer: C
30) The most popular applications being moved to the cloud include:
A) email, archiving, and storage.
B) upstream, internal, and downstream components.
C) accounting, inventory, and marketing.
D) security, privacy, and confidentiality.
E) procurement, operations, and sales.
Answer: A
31) Disintermediation refers to a change in the supply chain where the manufacturer or
service provider and the consumer do not interact directly with each other.
A) True
B) False

Answer: False
Diff: 1 Type: TF Page Ref: 151
32) Moment of truth is the critical moment in a service transaction where the customer's
expectations are either met, exceeded, or disappointed.
A) True
B) False
Answer: True
33) A push system is a supply chain model in which the production of suppliers is
determined by the demand of customers.
A) True
B) False
Answer: False
34) A pull system is a supply chain model in which the production of supplies is not
determined by the needs of the customers.
A) True
B) False
Answer: False
35) Reverse logistics is the process through which customers can return items purchased,
either for a refund or for repair or replacement under warranty.
A) True
B) False
Answer: True
36) Mass customization is one of the major forces of change that has affected Supply
Chain Management (SCM).
A) True
B) False
Answer: True
37) In the process of outsourcing, a partner must be willing and able to react quickly to
required product changes and demand fluctuations.

A) True
B) False
Answer: True
38) The army weapons industry is an example of an industry that has experienced some
level of disintermediation.
A) True
B) False
Answer: False
39) Business intelligence software is primarily used to address critical issues in supply
chain management, such as information analysis and information sharing.
A) True
B) False
Answer: True
40) Research has shown that vendor-managed inventory (VMI) often leads to reduced
inventory levels but substantially higher stockout rates because suppliers are not keen
enough to ensure that consumers are always able purchase their products.
A) True
B) False
Answer: False
41) The booking area of the travel industry has shifted from a pull to a push system.
A) True
B) False
Answer: False
42) The advent of ebusiness has shifted some of the power from companies to consumers.
A) True
B) False
Answer: True

43) What is the supply chain?

Answer:
The set of processes that encompasses everything from purchases of raw materials or
resources through to final delivery of a product or service to the end consumer.
Diff: 2 Type: ES Page Ref: 144
44) Describe how the internet has impacted individuals and suppliers in terms of price
sensitivity.
Answer:
The internet provides individuals with the ability to easily compare prices and gather
product information. As a result, customers are becoming increasingly sensitive to
price. When combined with customer preference for customized products, this shift
requires businesses to have a very strong grasp of their competition and their supply
chain partners.
45) Business process change can occur at three major levels. List and describe these
levels.
Answer:
Streamlining – involves relatively minor changes or “tweaking” of existing business
processes
Reengineering – fundamental rethinking and radical redesign of existing processes
Organizational change – new management-level positions are created that focus on
maximization of process efficiency
Diff: 2 Type: ES Page Ref: 157, 158
46) What is the cash-to-cash cycle?

Answer:
The length of time from purchasing materials until a product is manufactured.
47) The relationship of trust and partnership in the supply chain can be created more
quickly if discussions between parties centre on five factors. Name these factors.
Answer:
Realignment, service-level agreements, performance measurement, dispute resolution,
and security
48) Define what is meant by an optimal level of inventory.

Answer:

An optimal level of inventory is one that minimizes stock outs while maintaining the
lowest possible amount of inventory so as to minimize storage and handling costs.
49) Describe the two major categories of disintermediation.

Answer:
When the supplier of a good or service circumvents another member of the supply
chain, such as a distributor, and provides the good or service directly to the end
consumer, and (2) when a new intermediary enters the market using a new business
model (often lower cost) to drive out existing intermediaries.
50) Describe how the growth of cloud computing is affecting SCM.

Answer:
It is allowing companies to access software through the internet without hosting and
maintaining the systems in-house.

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eBusiness A Canadian Perspective for

a Networked World Canadian 4th

1) Reintermediation can be defined as:

2) What are the key elements for establishing a relationship of trust?

Copyright © 2013 Pearson Canada Inc. 7-1

B) enterprise resource planning

Copyright © 2013 Pearson Canada Inc. 7-2

10) Supply chain management can best be described as:

12) The following are very important technologies for SCM:

13) The following is an example of reengineering a process:

Copyright © 2013 Pearson Canada Inc. 7-3

14) The implementation of an ERP system may result in the following:

17) Logistics groups within companies would tend to:

18) Reverse logistics can be described as:

Copyright © 2013 Pearson Canada Inc. 7-4

D) a means of dealing with returned products.

21) In terms of supply chain management (SCM), business processes include:

Copyright © 2013 Pearson Canada Inc. 7-5

Diff: 2 Type: MC Page Ref: 158

Copyright © 2013 Pearson Canada Inc. 7-6

29) The major difficulty in legacy systems was:

Copyright © 2013 Pearson Canada Inc. 7-7

Copyright © 2013 Pearson Canada Inc. 7-8

Copyright © 2013 Pearson Canada Inc. 7-9

43) What is the supply chain?

46) What is the cash-to-cash cycle?

48) Define what is meant by an optimal level of inventory.

Copyright © 2013 Pearson Canada Inc. 7-10

49) Describe the two major categories of disintermediation.

50) Describe how the growth of cloud computing is affecting SCM.

Copyright © 2013 Pearson Canada Inc. 7-11

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