Sustainable Supply Chain Management Complete Test Bank Ch.13

File: ch13, Chapter 13: Sustainable Supply Chain Management

Multiple Choice

1. Supply chains can have adverse environmental and business consequences including:
2. Monetary costs
3. Health risks
4. Safety risks
5. Environmental costs
6. All of the above

Level: Easy

1. When evaluating the sustainability of a supply chain, mangers must focus on both ________ and _______ of each supply chain stage.
2. Logistics and transportation
3. Marketing and customers
4. Packaging and suppliers
5. Inputs and outputs
6. None of the above

Level: Easy

1. Reduced operating costs and lower capital costs are a _______ payoff of sustainable SCM.
2. Financial
3. Customer
4. Operational
5. Organizational
6. Societal

Level: Easy

1. Employee satisfaction and reduced risk are examples of _______ payoffs of sustainable SCM:
2. Financial
3. Customer
4. Operational
5. Organizational
6. Societal

Level: Easy

1. _________ sustainability refers to the preservation of biological systems over time.
2. Social
3. Environmental
4. Market
5. Operational
6. Organizational

Level: Easy

1. The two types of sustainable practices that are mediated by supply chain networks are:
2. Social and customer
3. Packaging and marketing
4. Sourcing and logistics
5. Environmental and social
6. None of the above

Level: Easy

1. ________ is the sustainability principle related most directly to the fair treatment of suppliers, distributors and other partners is:
2. Ethics
3. Governance
4. Transparency
5. Business relationships
6. Financial return

Level: Medium

1. Investment in or developing neighborhoods where a key supplier is located relates to the sustainability principle of:
2. Ethics
3. Governance
4. Community involvement
5. Business relationships
6. Financial return

Level: Medium

1. Reasons for implementing sustainable measures in SCM include:
2. Compliance with regulations
3. Positive community relations
4. Increasing revenues
5. Moral/Ethical obligations
6. All of the above

Level: Easy

1. Designing a sustainability framework that seeks only to avoid liability is a known as a/an_________ ethic.
2. Reasonable care
3. Good works
4. Compliance
5. Minimalist
6. Avoidance

Level: Medium

1. In the Supply Chain Sustainability Model, _________ context refers to inputs that pertain to government and market-based influences.
2. Local
3. Strategic
4. External
5. Internal
6. Business

Level: Medium

1. Consumers’ tolerance for pollution and their desire for environmentally friendly products relates to ________ influences on a company’s sustainability strategy.
2. Internal
3. Market
4. Regulatory
5. Global
6. Financial

Level: Difficult

1. Attributes of companies with the greatest potential for gain or loss from sustainability initiatives include:
2. Functional products
3. High-profile brands
4. Low reliance on natural resources
5. Limited regulatory exposure
6. b and c

Level: Difficult

1. The aspect of the Supply Chain Sustainability Model that focuses on establishing management systems that align incentives and rewards is known as:
2. Sustainability performance
3. Processes
4. Leadership
5. Financial performance
6. None of the above

Level: Difficult

1. Of the three drivers of sustainable initiatives, ________ relates to laws and government regulation.
2. Innovation
3. Compliance
4. Enforcement
5. Certification
6. None of the above

Level: Medium

1. Industry-initiated certification programs are known as _______ drivers of sustainable initiatives.
2. Innovation
3. Compliance
4. Enforcement
5. Certification
6. None of the above

Level: Medium

1. Measuring the effectiveness of sustainability initiatives by estimating the sum of all costs of a product is known as:
2. Life-cycle assessment
3. Ecological footprint
4. Carbon footprint
5. Food mile
6. Total cost of ownership

Level: Easy

1. The sustainability metric that measures the carbon dioxide emitted by manufacturing or logistics processes is known as:
2. Life-cycle assessment
3. Ecological footprint
4. Carbon footprint
5. Food mile
6. Total cost of ownership

Level: Easy

1. When determining the value of a natural resource, _____ value relates to the benefit derived from consuming the resources:
2. Option
3. Existence
4. Market
5. Use
6. Profit

Level: Medium

1. When monetizing the environmental and social impacts of a supply chain, ______ relates to the costs of avoiding damages before they occur.
2. Damage costing
3. Total cost of ownership
4. Life-cycle assessment
5. Cost-of-control
6. Activity-based costing

Level: Medium

1. In the ______ costing system, present and future costs and benefits of SCM activities are monetized.
2. Damage costing
3. Activity-based costing
4. Life-cycle costing
5. Cost of control
6. Total cost of ownership

Level: Difficult

1. Sustainability problems may occur infrequently and take years to manifest, but responsible companies include these possibilities in their ___________ assessment activities.
2. Market
3. Financial
4. Operational
5. Risk
6. Business

Level: Easy

1. _________ is the area of SCM that can greatly impact sustainability initiatives through evaluating the use of materials, sourcing, and disposal.
2. Logistics
3. Sourcing
4. Packaging
5. Product design
6. Marketing

Level: Medium

1. Methods for companies to monitor and improve their suppliers’ compliance with sustainability practices include:
2. Inspections
3. Contracts
4. Third-party audits
5. Training programs
6. All of the above

Level: Medium

1. Ensuring consumers are accurately informed about a product’s sustainable features is primarily the responsibility of the _________ function.
2. Operations
3. Risk management
4. Marketing
5. Sourcing
6. Logistics

Level: Easy

True/False

1. Sustainability is important but it is a minor theme in supply chain management.

Level: Easy

1. Supply chains have few environmental and social impacts.

Level: Easy

1. Sustainability practices impact SCM in the areas of product design and manufacturing.

Level: Medium

1. Sustainable supply chains must focus on inputs and outputs of operations.

Level: Medium

1. Sustainable supply chains can offer financial benefits to a firm, including lower costs of capital.

Level: Medium

1. Sustainable supply chain practices can result in financial payoffs including improved relationships with stakeholders and employees.

Level: Medium

1. Supply chain networks can mediate the differences between environmental and social sustainability practices.

Level: Easy

1. When evaluating supply chain decisions, an organization with a sustainability strategy would focus only on the economic factors of sustainable operations.

Level: Difficult

1. Of the nine sustainability principles, governance relates to promoting a truthful and fair corporate culture.

Level: Medium

1. A company that discloses all relevant financial or operating information to stakeholders would be following a principle of transparency.

Level: Medium

1. To have environmental integrity in the market place, a company need only to comply with the bare minimum of environmental laws.

Level: Easy

1. For companies to comply with legal aspects of sustainability, they typically must conform to established design and performance standards.

Level: Difficult

1. The “cost-oriented” approach to environmental management relates to protecting and enhancing business performance and increasing profits.

Level: Medium

1. Community relations are a minor aspect of sustainability practices, as they have a smaller impact on supply chains than cost and revenue.

Level: Difficult

1. A sustainability framework that seeks to avoid liability is known as a reasonable care ethic.

Level: Medium

1. The inclusion or absence of sustainability practices in SCM can have significant financial consequences.

Level: Easy

1. In the Supply Chain Sustainability Model, SCM processes and structures create both environmental and social impacts.

Level: Easy

1. The external context of SCM includes government and market-based influences.

Level: Easy

1. When developing a sustainable SCM strategy, it’s important to remember that all industries operate under very similar contexts when it comes to sustainable practices and impacts.

Level: Difficult

1. A key component of an effective SCM sustainability strategy is having effective metrics to evaluate performance.

Level: Medium

1. Of the three drivers of sustainability initiatives, innovation is internally motivated.

Level: Medium

1. The life-cycle assessment measure of sustainability considers the potential impacts associated with a product, process, or service.

Level: Medium

1. The ecological footprint measure of sustainability focuses on the producer, not the consumer.

Level: Difficult

1. Option and existence values of sustainability are considered “non-use” values.

Level: Easy

1. When assessing the cost of sustainability initiatives, the cost-of-control measure considers the costs of preventative measures to avoid damages.

Level: Medium

1. Effective decisions about SCM sustainability should monetize and consider social, political, and environmental risks.

Level: Easy

1. Product design decisions can improve sustainability performance by ensuring that materials and disposal are environmentally friendly.

Level: Easy

1. Utilizing environmentally responsible suppliers can impact SCM sustainability, and compliance should be monitored by the supplier.

Level: Difficult

1. The disposal of equipment or products is a key area for sustainability improvement opportunities in a company’s organizational processes.

Level: Medium

1. It is not necessary for the marketing function to be involved in sustainability strategy development, because marketing does not directly implement the strategy.

Level: Medium

Essay

1. Describe the three stages companies typically move through when implementing a sustainability SCM strategy.

Level: Medium

1. Select three functions/areas of SCM and describe how sustainability can be implemented in those functions.

Level: Easy