Page 55 - DCAP306_DCAP511_E-COMMERCE_AND_E-BUSINESS

E-Commerce and E-Business

• EDIFACT consists of a hierarchical structure where the top level is referred to as an interchange
structure, and bottom levels contain multiple messages.

• EDIFACT has an underlying syntax, an ISO 9735 standard, in which the syntax units are described
in detail.
4.5 Keywords

Extensible Markup Language (XML): It is a set of rules for encoding documents electronically.
Just-In-Time (JIT) Inventory System: It is a system in which materials are purchased and units are
produced as needed to meet the actual customer demand.
Request For Quotation (RFQ): It is a standard business process whose purpose is to invite suppliers
into a bidding process to bid on specific products or services.
Value-Added Network (VAN): It is a communication network that has additional functions like error
correction, protocol conversion, and message storing.

4.6 Self Assessment
1. State whether the following statements are true or false:
(a) EDI is a system which allows structured transmission of data between businesses,
government’s structures and other entities by electronic means.
(b) The UN/EDIFACT standards are used in the European automotive industry.
(c) E-Commerce payment systems have become very popular majorly due to the widespread use
of the Internet-based shopping and banking.

(d) EDI is typically handled by using store-and-forward technologies.
(e) The first attempt to produce a common data format was done in the 1970s by the cooperative
effort between industry groups.
(f) Software is needed to run EDI translation software.
2. Fill in the blanks:

(a) ______________stores the received message in an electronic mailbox simultaneously registers
the time and details in a computer.
(b) _________standard is the only international standard.
(c) __________________ transmission method is very slow and very expensive.
(d) Segments which are initializing with the UN are called the _______________.

(e) EDIFACT has an underlying syntax, an ______________standard, in which the syntax units
are described in detail.

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