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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: View 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: View Answer
Question: Order fulfillment refers only to providing customers with what they
have ordered and doing so on time.
Answer: View Answer
Question: Back-office operations are activities that support fulfillment of
orders, such as packing, delivery, accounting, and logistics.
Answer: View 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: View Answer
Question: EC logistics, or e-logistics, refers to the logistics of EC systems
mainly in B2B.
Answer: View Answer
Question: When compared to traditional logistics, the inventory flow for e-
logistics is usually unidirectional.
Answer: View Answer
Question: When compared to traditional logistics, the transporter for e-
logistics is frequently the same company.
Answer: View Answer
Question: The movement of returns from customers to vendors is known as
negative logistics.
Answer: View 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: View Answer
Question: The inability to deliver products on time is a typical problem in
offline commerce, but not online commerce.
Answer: View 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: View Answer
Question: The distribution network configuration is a major management issue
in supply chain management.
Answer: View Answer
Question: Outsourcing collaborators are external, rather than in-house,
providers of logistics services.
Answer: View 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: View 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: View 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: View Answer
Question: An effective way to solve order fulfillment problems is for an
organization to partner with UPS, FedEx, or other shippers.
Answer: View Answer
Question: The ability to easily change the logistics provider is one advantage
of outsourcing.
Answer: View Answer
Question: IBM pioneered the production of the components of computers via
mass production and to offer customization in their assembly.
Answer: View Answer
Question: Allowing for the return of unwanted merchandise and providing for
product exchanges are necessary to maintain customers’ trust and loyalty.
Answer: View Answer
Question: B2B order fulfillment commonly uses business process
management software to automate various steps in the process.
Answer: View Answer
Question: Supplychainer.com (20[/cpmembership]
Question: recommends automating your pickings as one of seven elements
for optimal order fulfillment.
Answer: View Answer
Question: Visibility decreases along the supply chain.
Answer: View 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: View 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: View Answer
Question: RFID and CPFR were found effective for improving supply chains
and reducing problems along them.
Answer: View Answer
Question: A major problem in order fulfillment is the demand forecast.
Answer: View Answer
Question: The goal of CPFR is to streamline product flow from manufacturing
plants all the way to customers’ homes.
Answer: View Answer
Question: B2Business.net is a directory that contains listings of B2B services
organized by type of service.
Answer: View Answer
Question: iEntry is a search engine that locates information and aggregates
B2B news.
Answer: View Answer
Question: Trademark and domain names are types of EC support services.
Answer: View Answer
Question: Partnet, Travelocity, and Autobytel are marketplace concentrators.
Answer: View Answer
Question: Ameritrade is an example of a transaction broker.
Answer: View Answer
Question: IT is the least frequently outsourced business activity.
Answer: View Answer
Question: Amazon.com’s 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: View 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: View Answer
Question: Business partners, government, customers, and suppliers are
A) e-markets.
B) e-processes.
C) e-communities.
D) e-infrastructure.
Answer: View Answer
Question: E-infrastructure services include each of the following except
A) security.
B) consulting services.
C) integration standards.
D) systems development.
Answer: View 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: View 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: View 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: View 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: View 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: View 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: View 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: View 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: View 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: View Answer
Question: Factors influencing demand include
A) economic conditions.
B) competition.
C) weather conditions.
D) all of the above.
Answer: View 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: View 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: View 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: View 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: View 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: View 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: View 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: View 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: View 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: View 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: View Answer
Question: Keys to successful inventory management include
A) low cost.
B) superior management.
C) employee satisfaction.
D) efficiency.
Answer: View 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: View Answer
Question: Intermediaries that prepare goods for shipping best describes
A) forwarders.
B) collaborators.
C) fulfillers.
D) vendors.
Answer: View 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: View 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: View 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: View 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: View 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: View 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: View 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
customer’s location best defines
A) rolling warehousing.
B) merge-in-transit.
C) business process management.
D) B2C fulfillment.
Answer: View 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: View 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 day’s
B) 2 hours; 2 hours’
C) week; 1 week’s
D) 12 hours; 12 hours’
Answer: View 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: View 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: View 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: View 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: View 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: View 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: View 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: View 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: View 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: View Answer
Question: Explain two reasons why an EC company’s deliveries to retailers
and customers may be delayed.
Answer: View Answer
Question: List three logistics characteristics and explain how e-logistics differs
from traditional logistics on each characteristic.
Answer: View Answer
Question: How can order-taking activity be improved with IT? Discuss two
ways and the benefit of each.
Answer: View Answer
Question: Define reverse logistics. List five options.
Answer: View Answer
Question: Identify five reasons why companies prefer to outsource some of
the EC support services.
Answer: View Answer  Reasons include a desire to concentrate on the core
business, the need to have services up and running rapidly, lack of expertise,
the inability to have the economies of scale enjoyed by outsourcers, the
inability to keep up with rapidly fluctuating demands if an in-house option is
used, and the number of required services.
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