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SupplyChainManagement,5(Chopra/Meindl)Chapter18SustainabilityandtheSupplyChainTrue/FalseQuestionsAfocusonsustainabilityallowsasupplychaintobetterservemoreconsciouscustomerswhileoftenimprovingsupplychainperformance.Answer:TRUEDiff:1Topic:18.1TheRoleofsustainabilityinaSupplyChainAACSB:EthicalUnderstanding&ReasoningAbilitiesLearningOutcome:ComparecommonapproachestosupplychaindesignAfocusonsustainabilityallowsasupplychaintobetterservemoreconsciouscustomerswhileoftenreducingsupplychainperformance.Answer:FALSEDiff:2Topic:18.1TheRoleofsustainabilityinaSupplyChainAACSB:EthicalUnderstanding&ReasoningAbilitiesLearningOutcome:ComparecommonapproachestosupplychaindesignWalmartstarteditsfocusonsustainabilityasadefensivemovegiventhebeatingitwastakingfromenvironmentalactivists.Answer:TRUEDiff:2Topic:18.1TheRoleofsustainabilityinaSupplyChainAACSB:EthicalUnderstanding&ReasoningAbilitiesLearningOutcome:ComparecommonapproachestosupplychaindesignCustomershaveusuallybackedupwordsabouttheimportanceofsustainabilitywithawillingnesstopaymoreforsustainableproducts.Answer:FALSEDiff:2Topic:18.1TheRoleofsustainabilityinaSupplyChainAACSB:EthicalUnderstanding&ReasoningAbilitiesLearningOutcome:ComparecommonapproachestosupplychaindesignHardin(1968)describedthetragedyofthecommoassadilemmaarisingwhenthecommongooddoesnotalignperfectlywiththegoodofindividualentities.Answer:TRUEDiff:1Topic:18.2TheTragedyoftheCommonsAACSB:EthicalUnderstanding&ReasoningAbilitiesLearningOutcome:Comparecommonapproachestosupplychaindesign18-1Copyright©2013PearsonEducation,Inc.publishingasPrenticeHallHardin(1968)describedthetragedyofthecommcassadilemmaarisingwhenthecommongoodalignsperfectlywiththegoodofindividualentities.Answer:FALSEDiff:2Topic:18.2TheTragedyoftheCommonsAACSB:EthicalUnderstanding&ReasoningAbilitiesLearningOutcome:ComparecommonapproachestosupplychaindesignTheIntergovernmentalPanelonClimateChange,aUnitedNationsbodythathasbeenassessingglobalwarmingsince1990,haswrittenthateventhoughmostofthebuildupofcarbondioxideintheatmospherehascomefromtheUnitedStatesandWesternEurope,itispoorercountriesthatareclosertotheequatorthatarelikelytopaythebiggestprice.Answer:TRUEDiff:1Topic:18.2TheTragedyoftheCommonsLearningOutcome:ComparecommonapproachestosupplychaindesignInreality,therearenoactionsinasupplychainthatimprovebothsustainabilityandsupplychainsurplus.Answer:FALSEDiff:1Topic:18.3KeyMetricsforSustainabilityAACSB:AnalyticSkillsLearningOutcome:ComparecommonapproachestosupplychaindesignFormostfirms,theextentofdirectemissionsistypicallyonlyasmallfractionoftheextentofindirectemissionsinthesupplychain.Answer:TRUEDiff:3Topic:18.3KeyMetricsforSustainabilityLearningOutcome:ComparecommonapproachestosupplychaindesignFacilitiesoftenofferthebestopportunitytosimultaneouslyimprovetheenvironmentalandfinancialperformancethroughinnovation.Answer:TRUEDiff:1Topic:18.4SustainabilityandSupplyChainDriversLearningOutcome:Comparecommonapproachestosupplychaindesign18-2Copyright©2013PearsonEducation,Inc.publishingasPrenticeHallMultipleChoiceQuestionsThefactorsdrivinganincreasedfocusonsustainabilitycanbedividedintothreedistinctcategories.Whichofthefollowingisnotoneofthesecategories?IncreasingrevenueforsustainabilityinitiativesMakingtheworldmoresustainableAttractingcustomerswhovaluesustainabilityReducingriskandimprovingthefinancialperformanceofthesupplychainAnswer:ADiff:1Topic:18.1TheRoleofsustainabilityinaSupplyChainLearningOutcome:ComparecommonapproachestosupplychaindesignMostconcreteactionhasbeenobservedprimarilywhenafocusonsustainabilityincreasesrevenueforsustainabilityinitiatives.makestheworldmoresustainable.attractscustomerswhovaluesustainability.reducesriskandimprovingthefinancialperformanceofthesupplychain.Answer:DDiff:2Topic:18.1TheRoleofsustainabilityinaSupplyChainLearningOutcome:ComparecommonapproachestosupplychaindesignMuchlesssuccessforsustainabilityinitiativeshasbeendrivenbyincreasedrevenueforsustainabilityinitiatives.customerdemand.attractedcustomerswhovaluesustainability.reducedriskandimprovingthefinancialperformanceofthesupplychain.Answer:BDiff:1Topic:18.1TheRoleofsustainabilityinaSupplyChainLearningOutcome:ComparecommonapproachestosupplychaindesignAlmost40percentofcouldbeachievedatnegativemarginalcosts,meaningthatinvestingintheseoptionswouldgeneratepositiveeconomicreturnsovertheirlifecycle.greenhousegasabatementfuelconsumptioninitiativesincreasedcustomerbaseimprovedcompanyreputationAnswer:ADiff:1Topic:18.1TheRoleofsustainabilityinaSupplyChainLearningOutcome:Comparecommonapproachestosupplychaindesign18-3Copyright©2013PearsonEducation,Inc.publishingasPrenticeHallUnilever,theDutch-BritishconsumergoodsgianthasinvestedsignificantefforttohelpemergingeconomiessuchasBrazilandIndiawrestlewithpoverty,waterscarcityandclimatechange.Thecompanyseesofitssalesandthemajorityofitsgrowthcomingfromemergingeconomies.almost25%almost50%almost60%almost75%Answer:BDiff:3Topic:18.1TheRoleofsustainabilityinaSupplyChainAACSB:DynamicsoftheGlobalEconomyLearningOutcome:ComparecommonapproachestosupplychaindesignWalmartreduceditsenergyconsumptionbyaddingskylightsfornaturallight.reducingkjugredesign.bettertransportationroutingoftrucks.Answer:ADiff:3Topic:18.1TheRoleofsustainabilityinaSupplyChainLearningOutcome:ComparecommonapproachestosupplychaindesignTherearemajorbarrierstoanincreasedfocusonsustainabilitylistedinthetextbook.Whichofthefollowingisnotoneofthese?Customers'unwillingnesstopayapremiumforgreenproductsInsufficientreturnoninvestmentDifficultyofimplementingsustainableprogramsDifficultyevaluatingsustainabilityacrossaproductlifecycleAnswer:CDiff:3Topic:18.1TheRoleofsustainabilityinaSupplyChainLearningOutcome:ComparecommonapproachestosupplychaindesignIntheshorttomediumterm,animprovedfocusonsustainabilityprovidesbenefitsthataresharedbutcoststhatmaybelocaltoafirm.arelocaltofirmsbutacostthatisglobal.aresharedandcoststhatareglobal.arelocalandcoststhatareglobal.Answer:ADiff:3Topic:18.1TheRoleofsustainabilityinaSupplyChainAACSB:ReflectiveThinkingSkillsLearningOutcome:Comparecommonapproachestosupplychaindesign18-4Copyright©2013PearsonEducation,Inc.publishingasPrenticeHall9)isamechanismthatconstrainstheaggregateemissionsbycreatingalimitednumberoftradeableemissionallowances,whichemissionsourcesmustsecureandsurrenderinproportiontotheiremissions.Command-and-controlCap-and-tradeCap-and-controlEmissionstaxAnswer:BDiff:2Topic:18.2TheTragedyoftheCommonsLearningOutcome:ComparecommonapproachestosupplychaindesignMetricsthatwouldtypicallybeincorporatesocialresponsibility(CSR)reportswouldcontainrevenue.social.environmental.BothBandCAnswer:DDiff:2Topic:18.3KeyMetricsforSustainabilityLearningOutcome:ComparecommonapproachestosupplychaindesignFromanenvironmentalperspective,therearefourimportantcategoriesthatallfirmsshouldmeasureandreport.Whichofthefollowingisnotoneofthese?WaterconsumptionCO2emissionsEnergyconsumptionWastegenerationAnswer:BDiff:2Topic:18.3KeyMetricsforSustainabilityAACSB:ReflectiveThinkingSkillsLearningOutcome:Comparecommonapproachestosupplychaindesign18-5Copyright©2013PearsonEducation,Inc.publishingasPrenticeHallInthecontextofgreenhousegasemission,theGHGprotocolinitiativedefinesthreelevelsofscope.Thefollowingscopeisreferredtoasdirectemissions.ThisscopereferstoemissionsfromGHGsourcesthatareownedorcontrolledbythereportingentity.Thisscopereferstoindirectemissionsfromgrid-sourcedelectricityandotherutilityservicesofheat,steamandcooling.Thisscopereferstotheinclusionofotherindirectemissionscomingfromsourcessuchastheproductionofpurchasedmaterials,outsourcedactivities,contractorownedvehicles,wastedisposal,andemployeebusinesstravel.Thisscopereferstothecorporateresponsibilityfordirectdischargingofemissionsintopublicwatersystems.Answer:ADiff:3Topic:18.3KeyMetricsforSustainabilityAACSB:ReflectiveThinkingSkillsLearningOutcome:ComparecommonapproachestosupplychaindesignA(n)measureofperformanceismoreeffectiveatcapturingsustainabilityimprovement.scoperelativeabsolutestatisticalAnswer:BDiff:2Topic:18.3KeyMetricsforSustainabilityLearningOutcome:ComparecommonapproachestosupplychaindesignInthecontextofgreenhousegasemission,theGHGprotocolinitiativedefineslevelsofscope.ThislevelreferstoemissionsfromGHGsourcesthatareownedorcontrolledbythereportingentity.Scope1Scope2Scope3Scope4Answer:ADiff:3Topic:18.3KeyMetricsforSustainabilityLearningOutcome:Comparecommonapproachestosupplychaindesign18-6Copyright©2013PearsonEducation,Inc.publishingasPrenticeHallInthecontextofgreenhousegasemission,theGHGprotocolinitiativedefineslevelsofscope.Thislevelreferstotheinclusionofotherindirectemissionscomingfromsourcessuchastheproductionofpurchasedmaterials,outsourcedactivities,contractorownedvehicles,wastedisposal,andemployeebusinesstravel.Scope1Scope2Scope3Scope4Answer:CDiff:3Topic:18.3KeyMetricsforSustainabilityLearningOutcome:ComparecommonapproachestosupplychaindesignInthecontextofgreenhousegasemission,theGHGprotocolinitiativedefineslevelsofscope.Thislevelreferstoindirectemissionsfromgrid-sourcedelectricityandotherutilityservicesofheat,steamandcooling.Scope1Scope2Scope3Scope4Answer:BDiff:3Topic:18.3KeyMetricsforSustainabilityLearningOutcome:ComparecommonapproachestosupplychaindesignInthecontextofgreenhousegasemission,directemissionsarecontrolledbythereportingentity.createdthroughwasteefromutilitybasedefromemployeebasedtravel.Answer:ADiff:3Topic:18.3KeyMetricsforSustainabilityLearningOutcome:ComparecommonapproachestosupplychaindesignInthecontextofgreenhousegasemission,indirectemissionswouldNOTincludepurchasedmaterials.outsourcedactivities.contractorownedvehicles.alloftheaboveAnswer:DDiff:1Topic:18.3KeyMetricsforSustainabilityAACSB:ReflectiveThinkingSkillsLearningOutcome:Comparecommonapproachestosupplychaindesign18-7Copyright©2013PearsonEducation,Inc.publishingasPrenticeHallInthetextbook,adetailedanalysisbyAbbottindicatedthattheirindirectemissionswereabouttimestheirdirectemissions.1to56to1415to1920to22Answer:BDiff:2Topic:18.3KeyMetricsforSustainabilityLearningOutcome:ComparecommonapproachestosupplychaindesignThedisadvantageofusinga(n)measureisthatadropinsupplychainsalesandproduction(forexampleinadownturn)willshowanimprovedabsolutemeasureofenergyconsumptioneventhoughthecompanymaynothavechangedanything.scoperelativeabsolutestatisticalAnswer:CDiff:3Topic:18.3KeyMetricsforSustainabilityLearningOutcome:ComparecommonapproachestosupplychaindesignA(n)measureofperformanceismoreeffectiveatcapturingimprovement.scoperelativeabsolutestatisticalAnswer:BDiff:3Topic:18.3KeyMetricsforSustainabilityLearningOutcome:Comparecommonapproachestosupplychaindesign22)tendtobesignificantconsumersofenergyandwaterandemittersofwasteandgreenhousegasesandthusoffersignificantopportunitiesforprofitableimprovement.EmployeesProductionprocessesFacilitiesVehiclesAnswer:CDiff:2Topic:18.4SustainabilityandSupplyChainDriversLearningOutcome:Comparecommonapproachestosupplychaindesign18-8Copyright©2013PearsonEducation,Inc.publishingasPrenticeHallAccordingtoits2011CSRreport,hasdesignedandopenedaviablestoreprototypethatisupto25to30percentmoreenergyefficientandproducesupto30percentfewergreenhousegasemissionscomparedtothe2005baseline.A)Starbucksb)TJMaxxWalmartKmartAnswer:CDiff:2Topic:18.4SustainabilityandSupplyChainDriversLearningOutcome:ComparecommonapproachestosupplychaindesignWalmarthasworkedtoconvertatitsstoresfromacosttoaprofitgenerator.energyusagewastegenerationwaterconsumptionreducedpackagingAnswer:BDiff:2Topic:18.4SustainabilityandSupplyChainDriversLearningOutcome:ComparecommonapproachestosupplychaindesignWalmartreportedthatinCalifornia,overpercentofwastehasbeendivertedfromlandfillsandmadeintosomethingelsethatproducesrevenue.25406080Answer:DDiff:2Topic:18.4SustainabilityandSupplyChainDriversLearningOutcome:Comparecommonapproachestosupplychaindesign26)hasworkedhardtoreuseheatenergyfromboilersinitsproductionprocessandreduceitstotalwaterfootprint.WalmartCoca-ColaIBMStarbucksAnswer:BDiff:2Topic:18.4SustainabilityandSupplyChainDriversLearningOutcome:Comparecommonapproachestosupplychaindesign18-9Copyright©2013PearsonEducation,Inc.publishingasPrenticeHall27)whoworkedwiththeirequipmentsupplier,SiemensVAI,tocreateanewproductionprocessthatcutcostsandemissionsbyusinglocalironorethatwasoflowerqualitybutcheaper.WalmartCoca-ColaPoscoStarbucksAnswer:CDiff:2Topic:18.4SustainabilityandSupplyChainDriversLearningOutcome:ComparecommonapproachestosupplychaindesignWhattypeofinventoryisoneofthemostdamagingfromasustainabilityperspective?RawmaterialsWorkinprocessFinishedgoodsLandfillAnswer:DDiff:1Topic:18.4SustainabilityandSupplyChainDriversAACSB:ReflectiveThinkingSkillsLearningOutcome:ComparecommonapproachestosupplychaindesignThesustainabilitydamagefromlandfilladditivescomesinwhichform?PotentialenergylostMaterialslostTerriblesmellBothAandBAnswer:DDiff:1Topic:18.4SustainabilityandSupplyChainDriversLearningOutcome:Comparecommonapproachestosupplychaindesign30)canbeusedtoassesstheenvironmentalimpactsassociatedwithaproduct'slifefromcradletograve.CRMSRMLCAMRPAnswer:ADiff:3Topic:18.4SustainabilityandSupplyChainDriversLearningOutcome:Comparecommonapproachestosupplychaindesign18-10Copyright©2013PearsonEducation,Inc.publishingasPrenticeHall31)reducedtheamountofharmfulphosphatesinlaundryanddishdetergentsintheAmericasregionby14.5percentin2011withagoalofreachingareductionof70percent.WalmartBASF3MProctor&GambleAnswer:ADiff:3Topic:18.4SustainabilityandSupplyChainDriversLearningOutcome:Comparecommonapproachestosupplychaindesign32)hasalwaysworkedhardtodesignproductsthatcanbeshippedflattoachievehighvolumeandweightdensityduringtransportation.Asaresult,thecompanynotonlylowersitstransportationcosts,italsoreducesemissionsandenergyuse.WalmartIKEA3MProctor&GambleAnswer:BDiff:3Topic:18.4SustainabilityandSupplyChainDriversLearningOutcome:Comparecommonapproachestosupplychaindesign33)ThepresenceofleadpaintinsomeofitsmostpopulartoysforcedtorecallhundredsofthousandsoftoyssoldbetweenAprilandJulyof2007.WalmartHasbroMattelRemcoAnswer:CDiff:2Topic:18.4SustainabilityandSupplyChainDriversLearningOutcome:Comparecommonapproachestosupplychaindesign34)continuestobeoneofthebiggestchallengestoimprovedsupplychainsustainability.GoodinformationWastegenerationWaterconsumptionReducingpackagingAnswer:ADiff:2Topic:18.4SustainabilityandSupplyChainDriversAACSB:ReflectiveThinkingSkillsLearningOutcome:Comparecommonapproachestosupplychaindesign18-11Copyright©2013PearsonEducation,Inc.publishingasPrenticeHallWalmartimplementedaweb-basedscorecardthatevaluatedthepackagingofeachproductalongninemetricswhichincludedcubeutilization.distancetraveled.recycledcontent.BothAandCAnswer:DDiff:2Topic:18.4SustainabilityandSupplyChainDriversLearningOutcome:ComparecommonapproachestosupplychaindesignThiscompanyhasnothititstargetsfortheuseofrenewableenergybecausethesesourceshavehighercostscomparedtoothersourcesofenergy.Ingeneral,thepublichasnotbeenwillingtopayfortheaddedcosts.WalmartIKEAIBM3MAnswer:ADiff:1Topic:18.4SustainabilityandSupplyChainDriversLearningOutcome:ComparecommonapproachestosupplychaindesignGuideandVanWassenhove(2009)describethreescenarioswhereasupplychainmayhandlereturns.Whichisnotoneofthese?ProductneedsrepairingProductcanberecycledProductneedsefficienttransportationtolandfillProductcanberemanufacturedAnswer:CDiff:1Topic:18.5ClosedLoopSupplyChainsAACSB:ReflectiveThinkingSkillsLearningOutcome:ComparecommonapproachestosupplychaindesignThesetwocompanieshavealsosetaggressivetargetsfortheirsupplierstoimproveoverallsupplychainsustainability.WalmartandIKEAIBMand3MMattelandHasbroAppleandStarbucksAnswer:ADiff:1Topic:18.4SustainabilityandSupplyChainDriversLearningOutcome:Comparecommonapproachestosupplychaindesign18-12Copyright©2013PearsonEducation,Inc.publishingasPrenticeHallMcDonoughandBraungart(2002)discusstheimportanceofdesignifwearetotrulylimitthelandfillinventorygeneratedbyasupplychain.cradletogravecradletocradlemanageablesustainabilityrecyclablecontentAnswer:BDiff:2Topic:18.4SustainabilityandSupplyChainDriversLearningOutcome:ComparecommonapproachestosupplychaindesignThegoalofeverysupplychainshouldbetotrackitslandfillinventory.transportationutilization.waterconsumption.packagingmaterials.Answer:ADiff:2Topic:18.4SustainabilityandSupplyChainDriversAACSB:ReflectiveThinkingSkillsLearningOutcome:Comparecommonapproachestosupplychaindesign18-13Copyright©2013PearsonEducation,Inc.publishingasPrenticeHall18.3EssayQuestionsDiscusstheroleofsustainabilitysupplychains.Answer:Thisisageneralquestionandmanyanswerswouldsufficeinansweringit.Answersshouldbesimilartothefollowingcomments.Eachsupplychainisonlyasmallpartoftheworlditresidesin.Ultimatelythehealthandsurvivalofeveryindividualdependsonthehealthoftheworldaroundus.Itisthusimportanttoexpandthegoalofasupplychainbeyondtheinterestsofitsparticipants(whichthesupplychainsurplusrepresents)toothersthatmaybeaffectedbysupplychaindecisions.Itisinthiscontextthatthe21stcenturyhasseenagrowingfocusonsustainability.ThefocusonsustainabilityhasincreasedaslargecountrieslikeBrazil,ChinaandIndiahavegrown.Ontheonehand,thegrowthofemergingmarketsisimprovinggloballivingstandardsinawaythatperhapshasnothappenedbeforeinhumanhistory.Ontheotherhand,thisgrowthputspressureonresourcesandtheenvironmentinawaythathasalsoneverhappenedbefore.Ithasbecomeincreasinglyclearthatifsupplychainsdonotbecomemuchmoresustainablethantheyhavebeeninthepast,theworld'sresourcesandenvironmentcannotsustainthislevelofgrowth.Diff:2Topic:18.1TheRoleofsustainabilityinaSupplyChainAACSB:ReflectiveThinkingSkillsLearningOutcome:ComparecommonapproachestosupplychaindesignDiscussthefactorsdrivinganincreasedfocusonsustainability.Answer:First,theycanbedividedintothreedistinctcategories:ReducingriskandimprovingthefinancialperformanceofthesupplychainAttractingcustomerswhovaluesustainabilityMakingtheworldmoresustainableMostactionhasbeenobservedprimarilywhenafocusonsustainabilityreducesriskforthesupplychainandimprovesfinancialperformance.Muchlesssuccesshasbeendrivenbycustomerdemandorthedesiretomaketheworldmoresustainable.Itisinterestingtonotethatthereissignificantopportunityevenifsupplychainsonlyfocusontheareasthatreduceriskandimprovefinancialperformance.Customerstothispointhavenotbeenwillingtopayextraforsustainableproductsasawholeeventhoughmanycustomersareenvironmentallysensitive.Assuch,macropoliciesmaybeoneofthebestoptionsforimprovingthesustainabilityofallsupplychains.Diff:2Topic:18.1TheRoleofsustainabilityinaSupplyChainAACSB:ReflectiveThinkingSkillsLearningOutcome:Comparecommonapproachestosupplychaindesign18-14Copyright©2013PearsonEducation,Inc.publishingasPrenticeHallWhatarethechallengestogreatersustainabilityposedbythetragedyofthecommons?Answer:Thetragedyofthecommdtsadilemmaarisingwhenthecommongooddoesnotalignperfectlywiththegoodofindividualentities.Manyactionsthatimprovesustainabilityofasupplychainimposecoststhatarelocal(toanindividual,afirm,supplychainorcountry)butprovidecommonbenefitsthataremoreglobal.Incontrast,adisregardforsustainabilityprovidesbenefitsthatarelocalbutcoststhatareshared

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