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Unformatted text preview: PA R T I I The Web Revolution 4. Network Computing: Discovery, Communication, and Collaboration 5. E-Business and E-Commerce 6. Mobile, Wireless, and Pervasive Computing C H A P T E R 5 E-Business and E-Commerce Hi-Life Corporation 5.1 Overview of E-Business and E-Commerce 5.2 EC Mechanisms: Electronic Auctions and Bartering 5.3 Business-to-Consumer Applications 5.4 Market Research and Online Advertising 5.5 B2B Applications 5.6 Intrabusiness and B2E 5.7 E-Government and Consumer- to-Consumer EC 5.8 E-Commerce Support Services 5.9 Legal and Ethical Issues in E-Business 5.10 Failures and Strategies for Success Minicases: (1) Freemarkets.com / (2) Restaurants.com Appendix 5.1 EDI and Extranets LEARNING OBJECTIVES After studying this chapter, you will be able to: Describe electronic commerce, its scope, benefits, limitations, and types. Understand auctions and bartering. Describe the major applications of business-to- consumer commerce, including service industries. Discuss the importance and activities of B2C market research and online advertising. Describe business-to-business applications. Describe emerging EC applications such as intra- business and B2E commerce. Describe e-government activities and consumer- to-consumer e-commerce. Describe the e-commerce support services, specifically payments and logistics. Discuss some ethicals and legal EC issues. Describe EC failures and strategies for success. 175 176 E-COMMERCE PROVIDES DECISION SUPPORT TO HI-LIFE CORPORATION ➥ THE PROBLEM Hi-Life Corporation owns and operates 720 convenience retail stores in Taiwan, where the company sells over 3,000 different products. A major problem is keeping a proper level of inventory of each product in each store. Overstocking is expensive due to storage costs and tying up money to buy and maintain the inventory. Understocking reduces sales and could result in unhappy customers who may go to a competitor. To calculate the appropriate level of inventory, it is necessary to know exactly how many units of each product are in stock at specific times. This is known as stock count . Periodic stock count is needed since the actual amount in stock frequently differs from the theoretical one (inventory previous inventory sales arrivals). The difference is due to “shrinkage” (e.g., theft, misplaced items, spoilage, etc.). Until 2002, stock count at Hi-Life was done manually. Using data collection sheets, where the products’ names were preprinted, employees counted the quantity of each product and recorded it on the data collection sheets. Then, the data were painstakingly keyed into each store’s PC. The process took over 21 person hours, in each store, each week. This process was expensive and frequently was delayed, causing problems along the entire supply chain due to delays in count and errors. Suppliers, employees, and customers were unhappy....
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This note was uploaded on 02/22/2009 for the course CET 3323C taught by Professor Miller during the Spring '09 term at University of Central Florida.
- Spring '09