TEXT BOOK: Schneider, GP 2015, Electronic commerce, 11th edition

MODULE 9 CHAPTER 5

REVIEW QUESTIONS

1. Explain the differences between an industry value chain and a strategic business unit's supply chain.

2. Define the term spend as it is used in business purchasing. Explain how the Internet has reduced the spend of many U.S. manufacturing companies.

3. Would the use of purchasing cards be more helpful in controlling direct materials costs or indirect materials costs? Explain why.

CASE STUDY C1 CRITICAL THINKING QUESTIONS

1. Become familiar with RFID technology and its potential uses in Harley- Davidson's supply chain using the information presented in this chapter and information you obtain through the Web Links, your favourite search engine, and your library. Outline the advantages Harley-Davidson might gain by replacing its bar codes and optical scanner technologies with RFID. Be sure to consider the nature of the company's product, which includes rubber and metal parts in oily/greasy environments, as you draft your answer.

2. Compare and contrast the issues that Walmart and other large retailers faced when they tried to implement RFID in their supply chains with those that a manufacturing company such as Harley-Davidson will likely face as it moves into RFID implementations with its suppliers.

3. When Harley-Davidson implements RFID, it will likely use the technology to help manage its relationships with its main customers, which are the local dealerships that sell motor-cycles and use replacement parts in their repair shops. Outline the issues that will likely arise when Harley-Davidson begins requiring RFID tracking of spare parts inventories at its dealers.