14188-37032_Ch05_Solutions - Electronic Commerce 7th...

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Electronic Commerce, 7th Edition Solutions 5-1 Electronic Commerce, 7th Edition 14188-37032 Chapter 5 Solutions Review Questions 1. Define “direct materials” and “indirect materials.” List reasons for a large company having two separate departments to manage the purchasing of each . Answer: Large companies need to keep such different items separate, since one (direct materials) is related to the creation and sale of the goods or services, while the indirect materials include the non-production departments (accounting, research, IT, etc.) Most indirect materials departments are considered a drain on profits. 2. Which industries were the first to establish standard EDI transaction sets? State why, in your opinion, these industries were more interested in setting standards than other industries. Answer: The freight and shipping companies were the first, because they had the most paperwork to cover; EDI made their paperwork system obsolete. 3. Define “knowledge management.” In one paragraph, describe three advantages that a management consulting firm could gain over its competitors by creating an internal knowledge management system. Answer: Knowledge management is the intentional collection, classification, and dissemination of information about a company, its processes, and its products and services. Some advantages include the ability to generate new ideas, help solve problems, and improve business processes. 4. Companies in a particular supply chain can work together to eliminate costs from the supply chain. In many cases, these cost savings are not shared evenly among the companies in the supply chain. Using research resources on the Web or in your library identify an industry in which savings are not shared equally. In two or three paragraphs, explain why some supply chain
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This note was uploaded on 06/30/2010 for the course CME EA2943 taught by Professor Chen during the Spring '10 term at Nanjing University.

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14188-37032_Ch05_Solutions - Electronic Commerce 7th...

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