Electronic Commerce 2004 1
Chapter 8
E-Supply Chains, Collaborative Commerce, and Intrabusiness
EC
True-False Questions
1. The success of EC is more dependent on the content of the Web page than on non-customer-
facing applications.
Answer: F Reference: E-Supply Chains
2. The flow of money in an organization is part of the supply chain.
Answer: T Reference: Definitions and Concepts
3. A complete supply chain runs from dirt to dust.
Answer: T Reference: Definitions and Concepts
4. The upstream section of the supply chain for a manufacturer includes all activities involving
suppliers.
Answer: T Reference: Supply Chain Parts
5. Customer service is a key metric in determining the success of supply chain management.
Answer: T Reference: Managing Supply Chains
6. Supply chain replenishment includes delivery to the customer.
Answer: T Reference: Activities and Infrastructure of E-SCM
7. Production and distribution are included in e-procurement.
Answer: F Reference: Activities and Infrastructure of E-SCM
8. In collaborative planning, buyers develop a supply plan and sellers develop a demand plan.
Answer: F Reference: Activities and Infrastructure of E-SCM
9. E-logistics involves using Web-based technologies to support warehouse and transportation
processes.
Answer: T Reference: Activities and Infrastructure of E-SCM
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2 E-Supply Chains, Collaborative Commerce, and Intrabusiness EC Chapter 8
10. A virtual trading community exists when the buyer contacts the seller online.
Answer: F Reference: Activities and Infrastructure of E-SCM
11. Workflow systems measure the flow of information within an organization.
Answer: F Reference: Activities and Infrastructure of E-SCM
12. Supply chain problems are more common in traditional organizations than in EC
organizations.
Answer: F Reference: Typical Problems Along the Supply Chain
13. The bullwhip effect occurs when orders up and down the supply chain shift erratically.
Answer: T Reference: The Bullwhip Effect
14. Some supply chains deal only with the flow of materials and products.
Answer: T Reference: The Need for Information Sharing Along the
Supply Chain
15. In EC organizations, the delivery of digitized products can be instantaneous.
Answer: T Reference: EC Solutions Along the Supply Chain
16. In a pull production strategy, orders are generated whenever more of the product is needed.
Answer: T Reference: EC Solutions Along the Supply Chain
17. B2B activities are limited to selling and buying.
Answer: F Reference: Collaborative Commerce
18. With today’s security technology, c-commerce is limited to collaboration among employees
of the same company.
Answer: F Reference: Collaborative Commerce
19. Traditionally, collaboration resulted in a vertically integrated supply chain.
Answer: T Reference: Collaborative Networks
20. Traditionally, manufacturing outsourcing created a potential disadvantage by slowing
product delivery when design changes were required.
Answer: T Reference: Reduction of Design Cycle Time: Adaptec, Inc.
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Electronic Commerce 2004 3
21. Knowledge management is concerned only with managing existing knowledge within the
organization.
Answer: F Reference: Collaborative Commerce and Knowledge
Management
22. Now that the EC shakeout is over, collaborative commerce is growing at a phenomenally
rapid rate.
Answer: F Reference: Barriers to C-Commerce
23. In collaborative planning, all parties have access to point-of-sale data.
Answer: T Reference: Collaborative Planning, CPFR, and
Collaborative Design
24. Product lifecycle management is a component of collaborative procurement planning.
Answer: F Reference: Product Lifecycle Management
25. E-commerce only occurs between business partners.
Answer: F Reference: Intrabusiness and B2E EC
26. The use of the Internet in providing training courses to Qantas Airlines employees is an
example of a B2E e-commerce.
Answer: T Reference: B2E EC
27. The primary purpose of a corporate portal is to give potential customers access to
information about both the company and its products.
Answer: F Reference: Corporate Portals: An Overview
28. Mobile portals move easily from one business partner to another.
Answer: F Reference: Types of Generic Portals
29. Customer-facing portals are the most important portal applications for businesses today.
Answer: F Reference: Corporate Portal Applications
30. While most agree that portals are important to success in EC, it is often difficult to quantify
the benefits of portal applications.
Answer: T Reference: Justifying Portals
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4 E-Supply Chains, Collaborative Commerce, and Intrabusiness EC Chapter 8
31. Workflow systems give managers more control over operations by providing detailed data
about how each employee is performing.
Answer: T Reference: Workflow Technologies and Applications
32. The goal of administrative workflow applications is to reduce clerical costs with a few
complex transactions.
Answer: T Reference: Types of Workflow Applications
33. Groupware applications are designed to support entire workgroups even though the various
members of the group have differing goals, tasks, and objectives.
Answer: F Reference: Groupware
34. Due to security concerns, groupware applications typically run on free-standing computers
rather than running on networks.
Answer: F Reference: Groupware
35. Groupware is designed to assist groups in the solution of semistructured and unstructured
problems.
Answer: F Reference: Group Decision Support Systems
36. Henry is in New York. Juan is in Mexico City. They meet online to solve a supply problem.
This is an example of Web conferencing.
Answer: T Reference: Electronic Teleconferencing
37. A production plant in Sydney is having problems with quality control. The plant manager
posts the details of the problem on an internal Web site, then waits for engineers in Europe,
Asia, and America to comment on the situation. Due to time differentials, he doesn’t expect
to hear from all the engineers for 24 hours. This is an example of real-time collaboration.
Answer: F Reference: RTC Tools
38. Based on current technologies, face-to-face business meetings will soon be replaced by the
use of real-time collaboration tools.
Answer: F Reference: Implementation Issues for Online Collaboration
39. The primary issue blocking many implementations of information sharing systems such as
collaborative design and ERP systems is trust.
Answer: T Reference: Managerial Issues
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Electronic Commerce 2004 5
Multiple Choice Questions
40. A supply chain includes all of the following EXCEPT:
a. materials.
b. employees.
c. information.
d. services.
Answer: b Reference: Definitions and Concepts
41. A supply chain includes all of the following parties EXCEPT:
a. mining companies that remove raw materials from the earth.
b. government regulators.
c. customers who buy finished products.
d. the delivery company that takes products to the customer.
Answer: b Reference: Definitions and Concepts
42. For a manufacturer, the supply chain ends:
a. when the customer buys the product.
b. when a customer decides he/she is satisfied with a product.
c. when the product is used up and disposed of.
d. when the supplier delivers raw materials and component parts to the manufacturer.
Answer: c Reference: Supply Chain Parts
43. The use of Web technologies to manage warehousing and transportation processes is called:
a. e-logistics.
b. e-replenishment.
c. downstream processing.
d. collaborative planning.
Answer: a Reference: Activities and Infrastructure of E-SCM
44. The E-SCM process that includes integrated production and distribution processes is:
a. e-procurement.
b. supply chain replenishment.
c. collaborative planning.
d. e-logistics.
Answer: b Reference: Activities and Infrastructure of E-SCM
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6 E-Supply Chains, Collaborative Commerce, and Intrabusiness EC Chapter 8
45. The use of Web-based technology to support requisitioning, sourcing, ordering, and payment
is called:
a. e-procurement.
b. supply chain replenishment.
c. collaborative planning.
d. e-logistics.
Answer: a Reference: Activities and Infrastructure of E-SCM
46. Developing a single demand forecast which is shared between buyer and seller is part of:
a. e-procurement.
b. supply chain replenishment.
c. collaborative planning.
d. e-logistics.
Answer: c Reference: Activities and Infrastructure of E-SCM
47. The use of Web technologies to support warehousing and distribution processes is called:
a. e-procurement.
b. supply chain replenishment.
c. collaborative planning.
d. e-logistics.
Answer: d Reference: Activities and Infrastructure of E-SCM
48. Internal networks used for communication and collaboration are called:
a. extranets.
b. the Internet.
c. groupware.
d. intranets.
Answer: d Reference: Activities and Infrastructure of E-SCM
49. The last fifteen orders from a manufacturer to its suppliers range from $100,000 to
$8,740,000. This is an example of:
a. order instability.
b. the bullwhip effect.
c. demand manipulation.
d. supply inadequacy.
Answer: b Reference: The Bullwhip Effect
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Electronic Commerce 2004 7
50. B2B systems which are used for communication, design, planning, information sharing, and
information discovery are called:
a. electronic bartering systems.
b. electronic data systems.
c. collaborative commerce.
d. information aggregation systems.
Answer: c Reference: Collaborative Commerce
51. 52.2.
All of the following would be considered c-commerce EXCEPT:
a. communication and collaboration with suppliers.
b. aggregating catalogs on a central server.
c. connecting suppliers.
d. sharing on-demand training courses across many locations simultaneously.
Answer: b Reference: Collaborative Commerce
52. The most important resource in c-commerce is:
a. a dependable and secure method of communication, such as an extranet.
b. the order processing system.
c. storefront software.
d. a sell-side marketplace.
Answer: a Reference: Collaborative Commerce
53. Wal-Mart and Levi Strauss collaborate on demand forecasting in order to optimize the flow of
materials along the supply chain. This is an example of:
a. reducing design cycle time.
b. reducing product development time.
c. CPFR.
d. APS.
Answer: c Reference: Collaborative Commerce and Knowledge
Management
54. A major block in the widespread implementation of collaborative commerce is:
a. the theory of collaborative commerce hasn’t been proven effective in real-world
applications.
b. the technology needed isn’t available.
c. the lack of universally accepted standards.
d. collaborative commerce is extremely expensive.
Answer: c Reference: Barriers to C-Commerce
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8 E-Supply Chains, Collaborative Commerce, and Intrabusiness EC Chapter 8
55. In collaborative planning, manufacturers, suppliers, and distribution partners:
a. all have access to point-of-sale information.
b. must allow open access to financial systems by all business partners.
c. must surrender access to all internal systems to all business partners.
d. must run the same internal systems.
Answer: a Reference: Collaborative Planning, CPFR, and
Collaborative Design
56. The purpose of CPFR is to:
a. eliminate intermediaries.
b. get products to customers as quickly as possible .
c. minimize quality problems in supplies.
d. optimize the flow of materials along the supply chain.
Answer: b Reference: The CPFR Project
57. The company leading the way in CPFR is:
a. IBM.
b. Microsoft.
c. Amazon.com.
d. Wal-Mart.
Answer: d Reference: The CPFR Project
58. Math-based programs that identify optimal solutions to complex planning problems that are
bound by constraints are called:
a. product lifecycle management systems.
b. advanced planning and scheduling systems.
c. collaborative planning systems.
d. forecasting and replenishment systems.
Answer: b Reference: Advanced Planning and Scheduling
59. A business strategy that enables manufacturers to control and share product-related data as
part of product design and development efforts is called:
a. product lifecycle management.
b. advanced planning and scheduling.
c. collaborative planning.
d. replenishment forecasting.
Answer: a Reference: Product Lifecycle Management
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Electronic Commerce 2004 9
60. Within-the-company e-business is called:
a. intranet management.
b. internal commerce.
c. employee EC.
d. intrabusiness EC.
Answer: d Reference: Internal Supply Chain Solutions, Intrabusiness,
and B2E
61. The goal of B2E is:
a. improved replenishment scheduling.
b. readily available point-of sale forecasts.
c. improved product offerings for customers.
d. improved employee morale.
Answer: d Reference: B2E EC
62. All of the following are examples of B2E EXCEPT:
a. an employee buys her company’s products at a discount through the online company
store.
b. the announcement of the appointment of a new Chief Financial Officer is disseminated
over the company intranet.
c. an employee places an order for materials from a supplier using an extranet.
d. an employee takes a training class over an intranet.
Answer: c Reference: B2E EC
63. Software intended to ease systems integration among collaborating companies is called:
a. extranet technology.
b. browser technology.
c. middleware.
d. collaborative software.
Answer: c Reference: Enabling Integration and the Role of Standards
and Web Services
64. A portal that stores data and allows users to navigate and query that data is called a(n):
a. information portal.
b. collaborating portal.
c. vortal.
d. intranet portal.
Answer: a Reference: Functional Portals
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10 E-Supply Chains, Collaborative Commerce, and Intrabusiness EC Chapter 8
65. All of the following are readily-demonstrated advantages of corporate portals EXCEPT:
a. they make information easily available by providing a simple user interface.
b. they provide significant cost reductions.
c. they offer access to business applications and data from anywhere.
d. they opportunities to implement platform-independent software.
Answer: b Reference: Justifying Portals
66. Business process automation tools that place system controls in the hands of user departments
are called:
a. workflow systems.
b. groupware.
c. collaborative systems.
d. electronic meeting systems.
Answer: a Reference: Workflow Technologies and Applications
67. Collaborative workflow applications:
a. address mission-critical, transaction-oriented, high volume processes.
b. address project-oriented and collaborative processes.
c. have pre-defined workflows, but can be redefined quickly when needed.
d. are business process automation tools that place system controls in the hands of users.
Answer: b Reference: Types of Workflow Applications
68. Software applications that address project management concerns are examples of:
a. production workflow applications.
b. administrative workflow applications.
c. collaborative workflow applications.
d. portal applications.
Answer: c Reference: Types of Workflow Applications
69. Addressing mission-critical, transaction-oriented, high-volume processes is the goal of:
a. production workflow applications.
b. administrative workflow applications.
c. collaborative workflow applications.
d. portal applications.
Answer: a Reference: Types of Workflow Applications
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Electronic Commerce 2004 11
70. An interactive computer-based system that facilitates the solution of semistructured and
unstructured problems by a group of decision makers is called:
a. CPFR.
b. a Group Decision Support System.
c. Advanced Planning and Scheduling.
d. PLM.
Answer: b Reference: Group Decision Support Systems
71. The transfer of documents and computer files while videoconferencing is called:
a. CPFR.
b. Web conferencing.
c. data conferencing.
d. an interactive whiteboard.
Answer: c Reference: Electronic Teleconferencing
72. A system that delivers interactive computer-generated 3D graphics to a user through a head-
mounted display is called:
a. virtual reality.
b. Web conferencing.
c. an interactive whiteboard.
d. virtual design.
Answer: a Reference: Virtual Reality
73. A corporate LAN or WAN that uses Internet technology secured behind a corporate firewall is
called a(n):
a) extranet.
b) ERP.
c) intranet.
d) groupware application.
Answer: c Reference: Intranets
74. All of the following are possible uses of Intranets EXCEPT:
a. project management.
b. customer-based customer service.
c. transaction processing.
d. paperless information delivery to employees.
Answer: b Reference: Intranet Applications
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12 E-Supply Chains, Collaborative Commerce, and Intrabusiness EC Chapter 8
Essay Questions
75. What is a supply chain?
Answer: The flow of information, materials, money, and services from raw material
suppliers through factories and warehouses to end customers.
Reference: Definitions and Concepts
76. What are the six processes included in the e-supply chain?
Answer:
1. Replenishment.
2. E-procurement.
3. Collaborative planning.
4. Collaborative design and product development.
5. E-logistics.
6. Use of B2B exchanges and supply webs.
Reference: Activities and Infrastructure of E-SCM
77. List three typical supply chain problems.
Answer:
1. Inventory management.
2. Product delivery.
3. Maintaining quality.
Reference: Typical Problems Along the Supply Chain
78. What are two factors that have slowed the spread of c-commerce?
Answer: Two of the following:
1. Problems with systems integration.
2. A lack of standards.
3. Security concerns.
4. Privacy concerns.
5. Lack of trust.
6. Cultural problems associated with sharing information.
Reference: Barriers to C-Commerce
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Electronic Commerce 2004 13
79. List three types of generic portals.
Answer: Any three of the following:
1. Supplier portal.
2. Customer portal.
3. Employee portal.
4. Supervisor portal.
5. Mobile portal.
Reference: Types of Generic Portals
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