Question 1

The ultimate goal of supply chain management is to achieve a higher-quality or lower-cost product at the end of the chain.

Accepted Answer

The ultimate goal of supply chain management is to optimize the flow of goods and services, information, and funds throughout the supply chain to ultimately provide value to the customer. This can result in a higher-quality or lower-cost product, but the main focus is on delivering value and meeting customer needs.

Question 2

The classic objective of _____ is to provide the right goods in the right quantities in the right place at the right time.
A) procurement
B) logistics
C) marketing
D) production

Accepted Answer

The objective of logistics is to ensure that the right goods are delivered in the right quantities to the right place at the right time. Procurement focuses on acquiring the goods or services needed by a company, marketing focuses on promoting and selling those goods, and production focuses on manufacturing or creating those goods.

Question 3

An independent exchange is a B2B marketplace model.

Accepted Answer

An independent exchange is a digital marketplace that connects buyers and sellers from various companies, and it can cater to both B2B (business-to-business) and B2C (business-to-consumer) models, not exclusively B2B.

Question 4

_____ requires each business in the network to operate its own on-site electronic data interchange (EDI) translator computer.
A) Open EDI
B) Direct connection EDI
C) Internet EDI
D) Web EDI

Accepted Answer

Direct connection EDI requires each business in the network to have its own on-site EDI translator, whereas Open EDI, Internet EDI, and Web EDI do not necessarily require on-site translators.

Question 5

_____ generally includes all purchasing activities, plus the monitoring of all elements of purchase transactions.
A) Procurement
B) Logistics
C) Distribution
D) Sales

Accepted Answer

Procurement includes all purchasing activities, as well as monitoring all elements of purchase transactions. Logistics refers to the management of the flow of goods, while distribution focuses on getting the products to the end user. Sales involve generating revenue by selling products or services.

Question 6

A passive Radio Frequency Identification Device (RFID) tag does not need a power source.

Accepted Answer

A passive RFID tag does not require a power source as it derives its energy from the electromagnetic field created by the RFID reader which then powers the tag to communicate its data.

Question 7

In _____, the company negotiates long-term contracts for most of the materials that it will need.
A) replenishment purchasing
B) blanket purchasing
C) spot purchasing
D) tactical purchasing

Accepted Answer

The answer of In _____, the company negotiates long-term contracts...

Question 8

The roots of Web technology for business-to-business transactions lie in a hierarchically structured approach to inter-firm information transfer called _____.
A) power line communication
B) data terminal interoperation
C) object technology
D) electronic data interchange

Accepted Answer

Electronic data interchange (EDI) is a hierarchically structured approach to inter-firm information transfer that has been used since the 1970s for business-to-business transactions. It involves the exchange of standard business documents, such as purchase orders and invoices, in a structured electronic format between trading partners.

Question 9

Electronic data interchange (EDI) is still the single most commonly used technology in online _____ transactions.
A) consumer-to-business
B) business-to-business
C) business-to-government
D) business-to-consumer

Accepted Answer

Electronic data interchange (EDI) is primarily used for business-to-business (B2B) transactions. It allows for the exchange of standard business documents such as purchase orders and invoices between trading partners electronically, improving efficiency and reducing the need for manual data entry. EDI is not commonly used for consumer-to-business (C2B), business-to-consumer (B2C), or business-to-government (B2G) transactions.

Question 10

_____ activities include managing the inbound movements of materials and supplies and the outbound movements of finished goods and services.
A) Procurement
B) Logistics
C) Transaction
D) Production

Accepted Answer

Logistics encompasses managing the flow of materials both inbound and outbound, including transportation and warehousing. Procurement is focused on purchasing goods and services, while production involves the creation of goods. Transaction refers to the exchange of money or goods for services.

Question 11

The _____ has been the coordinating body for standards in the United States since 1918.
A) Association for Computing Machinery
B) Institute of Electronic and Electrical Engineers
C) American National Standards Institute
D) Institution of Engineering and Technology

Accepted Answer

The American National Standards Institute (ANSI) has been the coordinating body for standards in the United States since 1918. The Association for Computing Machinery (ACM) and the Institute of Electronic and Electrical Engineers (IEEE) are professional organizations focused on specific fields, while the Institution of Engineering and Technology is a professional organization based in the United Kingdom.

Question 12

_____ allows trading partners to pass messages through a value-added network instead of connecting their computers directly to each other.
A) Indirect connection EDI
B) Direct connection EDI
C) Wireless EDI
D) Repeated EDI

Accepted Answer

Indirect connection EDI allows trading partners to pass messages through a value-added network, meaning they do not have to directly connect their computers to each other. This can provide added security, monitoring, and management capabilities.

Question 13

To use the services of a value-added network (VAN), a company must install electronic data interchange (EDI) _____ software that is compatible with the VAN.
A) switch
B) interpreter
C) translator
D) router

Accepted Answer

To communicate with a VAN using EDI, a company must have EDI translator software installed. This software converts the company's data into a format that is compatible with the VAN, and vice versa. The other options (switch, interpreter, router) do not perform the same function as an EDI translator.

Question 14

One common support activity that underlies multiple primary activities is _____.
A) warehousing
B) purchasing
C) training
D) procuring

Accepted Answer

Training is a support activity that enhances the skills and capabilities of employees, which can improve the efficiency and effectiveness of multiple primary activities within an organization.

Question 15

In 1979, American National Standards Institute (ANSI) chartered a new committee to develop uniform electronic data interchange (EDI) standards.This committee is called the _____.
A) ASC X12
B) DISA
C) EDIFACT
D) EDIINT

Accepted Answer

The committee chartered by ANSI in 1979 to develop uniform EDI standards is called ASC X12 (Accredited Standards Committee X12). DISA (Data Interchange Standards Association) is a nonprofit organization that promotes the use of EDI and other electronic commerce standards. EDIFACT (Electronic Data Interchange for Administration, Commerce, and Transport) is a global standard for EDI developed by the United Nations. EDIINT (EDI over the Internet) is a protocol for secure and reliable exchange of EDI documents over the internet.

Question 16

EDI is the acronym for _____.
A) Education Interchange
B) Elementary Decision Implementation
C) Electronic Data Interchange
D) Electronic Distance Interface

Accepted Answer

EDI stands for Electronic Data Interchange, which is the electronic exchange of business documents between organizations in a standardized format. EDI is used to optimize supply chain efficiency, reduce costs and errors associated with manual processes, and improve the speed and accuracy of business transactions. None of the other choices accurately describe the meaning of EDI.

Question 17

By engaging suppliers in cooperative, long-term relationships, companies have found that they can work together with these suppliers to identify new ways to provide their own customers with faster, cheaper, and better services.

Accepted Answer

By engaging in cooperative, long-term relationships with suppliers, companies can collaborate to improve their services and offerings to customers.

Question 18

One trend that is becoming clear in purchasing, logistics, and support activities is the shift away from hierarchical structures toward _____ structures.
A) vertical
B) horizontal
C) network
D) bottom-up

Accepted Answer

The shift is towards network structures, which allow for more flexibility, collaboration, and efficiency in operations, moving away from traditional hierarchical models.

Question 19

_____ is the intentional collection, classification, and dissemination of information about a company, its products, and its processes.
A) Database management
B) Knowledge management
C) Intelligence warehousing
D) Data mining

Accepted Answer

Knowledge management specifically focuses on the intentional collection and dissemination of information within an organization. The other options (A, C, D) are related to managing and analyzing data, but not necessarily focused on information about a specific company and its products/processes.

Question 20

A vertical portal is an industry-focused hub that offers services to more than one industry.

Accepted Answer

A vertical portal is focused on a specific industry or niche, offering services, information, and resources tailored to stakeholders within that particular sector, not multiple industries.

Quiz 5: Business-To-Business Activities: Improving Efficiency and Reducing Costs

The ultimate goal of supply chain management is to achieve a higher-quality or lower-cost product at the end of the chain.

The classic objective of _____ is to provide the right goods in the right quantities in the right place at the right time.

An independent exchange is a B2B marketplace model.

_____ requires each business in the network to operate its own on-site electronic data interchange (EDI) translator computer.

_____ generally includes all purchasing activities, plus the monitoring of all elements of purchase transactions.

A passive Radio Frequency Identification Device (RFID) tag does not need a power source.

In _____, the company negotiates long-term contracts for most of the materials that it will need.

The roots of Web technology for business-to-business transactions lie in a hierarchically structured approach to inter-firm information transfer called _____.

Electronic data interchange (EDI) is still the single most commonly used technology in online _____ transactions.

_____ activities include managing the inbound movements of materials and supplies and the outbound movements of finished goods and services.

The _____ has been the coordinating body for standards in the United States since 1918.

_____ allows trading partners to pass messages through a value-added network instead of connecting their computers directly to each other.

To use the services of a value-added network (VAN) , a company must install electronic data interchange (EDI) _____ software that is compatible with the VAN.

One common support activity that underlies multiple primary activities is _____.

In 1979, American National Standards Institute (ANSI) chartered a new committee to develop uniform electronic data interchange (EDI) standards.This committee is called the _____.

EDI is the acronym for _____.

By engaging suppliers in cooperative, long-term relationships, companies have found that they can work together with these suppliers to identify new ways to provide their own customers with faster, cheaper, and better services.

One trend that is becoming clear in purchasing, logistics, and support activities is the shift away from hierarchical structures toward _____ structures.

_____ is the intentional collection, classification, and dissemination of information about a company, its products, and its processes.

A vertical portal is an industry-focused hub that offers services to more than one industry.