Supply Chain Management, 5e (Chopra/Meindl) Chapter 18 Sustainability and the Supply Chain
18.1 True/False Questions 1) A focus on sustainability allows a supply chain to better serve more conscious customers while often improving supply chain performance. Answer: T!" #iff: 1 Topic: 18.1 The ole of sustainability sustainability in a $upply %hain AA%$&: "thical !n'erstan'ing ( easoning Abilities earning *utcome: %ompare common approaches to supply chain 'esign +) A focus on sustainability allows a supply chain to better serve more conscious customers while often re'ucing supply chain performance. Answer: FA$" #iff: + Topic: 18.1 The ole of sustainability sustainability in a $upply %hain AA%$&: "thical !n'erstan'ing ( easoning Abilities earning *utcome: %ompare common approaches to supply chain 'esign ,) -almart starte' its focus on sustainability as a 'efensive move given the beating it was taing from environmental activists. Answer: T!" #iff: + Topic: 18.1 The ole of sustainability sustainability in a $upply %hain AA%$&: "thical !n'erstan'ing ( easoning Abilities earning *utcome: %ompare common approaches to supply chain 'esign ) %ustomers have usually bace' up wor's about the importance of sustainability with a willingness to pay more for sustainable pro'ucts. Answer: FA$" #iff: + Topic: 18.1 The ole of sustainability sustainability in a $upply %hain AA%$&: "thical !n'erstan'ing ( easoning Abilities earning *utcome: %ompare common approaches to supply chain 'esign 0) ar'in 21348) 'escribe' the tragedy of the commons as commons as a 'ilemma arising when the common goo' 'oes not align perfectly with w ith the goo' of in'ivi'ual entities. Answer: T!" #iff: 1 Topic: 18.+ The Trage'y Trage'y of the %ommons AA%$&: "thical !n'erstan'ing ( easoning Abilities earning *utcome: %ompare common approaches to supply chain 'esign
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4) ar'in 21348) 'escribe' the tragedy of the commons as a 'ilemma arising when the common goo' aligns perfectly with the goo' of in'ivi'ual entities. Answer: FA$" #iff: + Topic: 18.+ The Trage'y of the %ommons AA%$&: "thical !n'erstan'ing ( easoning Abilities earning *utcome: %ompare common approaches to supply chain 'esign ;) The ntergovernmental anel on %limate %hange9 a !nite'
uator that are liely to pay the biggest price. Answer: T!" #iff: 1 Topic: 18.+ The Trage'y of the %ommons earning *utcome: %ompare common approaches to supply chain 'esign 8) n reality9 there are no actions in a supply chain that improve both sustainability an' supply chain surplus. Answer: FA$" #iff: 1 Topic: 18., ?ey @etrics for $ustainability AA%$&: Analytic $ills earning *utcome: %ompare common approaches to supply chain 'esign 3) For most firms9 the e=tent of 'irect emissions is typically only a small fraction of the e=tent of in'irect emissions in the supply chain. Answer: T!" #iff: , Topic: 18., ?ey @etrics for $ustainability earning *utcome: %ompare common approaches to supply chain 'esign 17) Facilities often offer the best opportunity to simultaneously improve the environmental an' financial performance through innovation. Answer: T!" #iff: 1 Topic: 18. $ustainability an' $upply %hain #rivers earning *utcome: %ompare common approaches to supply chain 'esign
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18.+ @ultiple %hoice Questions 1) The factors 'riving an increase' focus on sustainability can be 'ivi'e' into three 'istinct categories. -hich of the following is not one of these categories A) ncreasing revenue for sustainability initiatives &) @aing the worl' more sustainable %) Attracting customers who value sustainability #) e'ucing ris an' improving the financial pe rformance of the supply chain Answer: A #iff: 1 Topic: 18.1 The ole of sustainability in a $upply %hain earning *utcome: %ompare common approaches to supply chain 'esign +) @ost concrete action has been observe' primarily when a focus on sustainability A) increases revenue for sustainability initiatives. &) maes the worl' more sustainable. %) attracts customers who value sustainability. #) re'uces ris an' improving the financial performance of the supply chain. Answer: # #iff: + Topic: 18.1 The ole of sustainability in a $upply %hain earning *utcome: %ompare common approaches to supply chain 'esign ,) @uch less success for sustainability initiatives has been 'riven by A) increase' revenue for sustainability initiatives. &) customer 'eman'. %) attracte' customers who value sustainability. #) re'uce' ris an' improving the financial performance of the supply chain. Answer: & #iff: 1 Topic: 18.1 The ole of sustainability in a $upply %hain earning *utcome: %ompare common approaches to supply chain 'esign ) Almost 7 percent of BBBBBBBB coul' be achieve' at negative marginal costs9 meaning that investing in these options woul' generate positive economic returns over their lifecycle. A) greenhouse gas abatement &) fuel consumption initiatives %) increase' customer base #) improve' company reputation Answer: A #iff: 1 Topic: 18.1 The ole of sustainability in a $upply %hain earning *utcome: %ompare common approaches to supply chain 'esign
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0) !nilever9 the #utch5&ritish consumer goo's giant has investe' significant effort to help emerging economies such as &raCil an' n'ia wrestle with poverty9 water scarcity an' climate change. The company sees BBBBBBBB of its sales an' the maDority of its growth co ming from emerging economies. A) almost +0E &) almost 07E %) almost 47E #) almost ;0E Answer: & #iff: , Topic: 18.1 The ole of sustainability in a $upply %hain AA%$&: #ynamics of the lobal "conomy earning *utcome: %ompare common approaches to supply chain 'esign 4) -almart re'uce' its energy consumption by A) a''ing sylights for natural light. &) re'ucing pacaging. %) mil Dug re'esign. #) better transportation routing of trucs. Answer: A #iff: , Topic: 18.1 The ole of sustainability in a $upply %hain earning *utcome: %ompare common approaches to supply chain 'esign ;) There are maDor barriers to an increase' focus on sustainability liste' in the te=tboo. -hich of the following is not one of these A) %ustomersG unwillingness to pay a premium for green pro'ucts &) nsufficient return on investment %) #ifficulty of implementing sustainable programs #) #ifficulty evaluating sustainability across a pro'uct life cycle Answer: % #iff: , Topic: 18.1 The ole of sustainability in a $upply %hain earning *utcome: %ompare common approaches to supply chain 'esign 8) n the short to me'ium term9 an improve' focus on sustainability provi'es benefits that A) are share' but costs that may be local to a firm. &) are local to firms but a cost that is global. %) are share' an' costs that are global. #) are local an' costs that are global. Answer: A #iff: , Topic: 18.1 The ole of sustainability in a $upply %hain AA%$&: eflective Thining $ills earning *utcome: %ompare common approaches to supply chain 'esign
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3) BBBBBBBB is a mechanism that constrains the aggregate emissions by creating a limite' number of tra'eable emission allowances9 which emission sources must secure an' surren'er in proportion to their emissions. A) %omman'5an'5control &) %ap5an'5tra'e %) %ap5an'5control #) "missions ta= Answer: & #iff: + Topic: 18.+ The Trage'y of the %ommons earning *utcome: %ompare common approaches to supply chain 'esign 17) @etrics that woul' typically be in corporate social responsibility 2%$) reports woul' contain A) revenue. &) social. %) environmental. #) &oth & an' % Answer: # #iff: + Topic: 18., ?ey @etrics for $ustainability earning *utcome: %ompare common approaches to supply chain 'esign 11) From an environmental perspective9 there are four important categories that all firms shoul' measure an' report. -hich of the following is not one of these A) -ater consumption &) %*+ emissions %) "nergy consumption #) -aste generation Answer: & #iff: + Topic: 18., ?ey @etrics for $ustainability AA%$&: eflective Thining $ills earning *utcome: %ompare common approaches to supply chain 'esign
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1+) n the conte=t of greenhouse gas emission9 the protocol initiative 'efines three levels of scope. The following scope is referre' to as 'irect emissions. A) This scope refers to emissions from sources that are owne' or controlle' by the reporting entity. &) This scope refers to in'irect emissions from gri'5source' electricity an' other utility services of heat9 steam an' cooling. %) This scope refers to the inclusion of other in'irect emissions coming from sources such as the pro'uction of purchase' materials9 outsource' activities9 contractor owne' vehicles9 waste 'isposal9 an' employee business travel. #) This scope refers to the corporate responsibility for 'irect 'ischarging of emissions into public water systems. Answer: A #iff: , Topic: 18., ?ey @etrics for $ustainability AA%$&: eflective Thining $ills earning *utcome: %ompare common approaches to supply chain 'esign 1,) A2n) BBBBBBBB measure of performance is more effective at capturing sustainability improvement. A) scope &) relative %) absolute #) statistical Answer: & #iff: + Topic: 18., ?ey @etrics for $ustainability earning *utcome: %ompare common approaches to supply chain 'esign 1) n the conte=t of greenhouse gas emission9 the protocol initiative 'efines levels of scope. This level refers to emissions from sources that are owne' or controlle' by the reporting entity. A) $cope 1 &) $cope + %) $cope , #) $cope Answer: A #iff: , Topic: 18., ?ey @etrics for $ustainability earning *utcome: %ompare common approaches to supply chain 'esign
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10) n the conte=t of greenhouse gas emission9 the protocol initiative 'efines levels of scope. This level refers to the inclusion of other in'irect emissions coming from sources such as the pro'uction of purchase' materials9 outsource' activities9 contractor owne' vehicles9 waste 'isposal9 an' employee business travel. A) $cope 1 &) $cope + %) $cope , #) $cope Answer: % #iff: , Topic: 18., ?ey @etrics for $ustainability earning *utcome: %ompare common approaches to supply chain 'esign 14) n the conte=t of greenhouse gas emission9 the protocol initiative 'efines levels of scope. This level refers to in'irect emissions from gri'5source' electricity an' other utility services of heat9 steam an' cooling. A) $cope 1 &) $cope + %) $cope , #) $cope Answer: & #iff: , Topic: 18., ?ey @etrics for $ustainability earning *utcome: %ompare common approaches to supply chain 'esign 1;) n the conte=t of greenhouse gas emission9 'irect emissions are A) controlle' by the reporting entity. &) create' through waste 'isposal. %) come from utility base' services. #) come from employee base' travel. Answer: A #iff: , Topic: 18., ?ey @etrics for $ustainability earning *utcome: %ompare common approaches to supply chain 'esign 18) n the conte=t of greenhouse gas emission9 in'irect emissions woul' <*T inclu'e A) purchase' materials. &) outsource' activities. %) contractor owne' vehicles. #) all of the above Answer: # #iff: 1 Topic: 18., ?ey @etrics for $ustainability AA%$&: eflective Thining $ills earning *utcome: %ompare common approaches to supply chain 'esign
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13) n the te=tboo9 a 'etaile' analysis by Abbott in'icate' that their in'irect emissions were about BBBBBBBB times their 'irect emissions. A) 1 to 0 &) 4 to 1 %) 10 to 13 #) +7 to ++ Answer: & #iff: + Topic: 18., ?ey @etrics for $ustainability earning *utcome: %ompare common approaches to supply chain 'esign +7) The 'isa'vantage of using a2n) BBBBBBBB measure is that a 'rop in supply chain sales an' pro'uction 2for e=ample in a 'ownturn) will show an improve' absolute measure of energy consumption even though the company may not have change' anything. A) scope &) relative %) absolute #) statistical Answer: % #iff: , Topic: 18., ?ey @etrics for $ustainability earning *utcome: %ompare common approaches to supply chain 'esign +1) A2n) BBBBBBBB measure of performance is more effective at capturing improvement. A) scope &) relative %) absolute #) statistical Answer: & #iff: , Topic: 18., ?ey @etrics for $ustainability earning *utcome: %ompare common approaches to supply chain 'esign ++) BBBBBBBB ten' to be significant consumers of energy an' water an' e mitters of waste an' greenhouse gases an' thus offer significant opportunities for profitable improvement. A) "mployees &) ro'uction processes %) Facilities #) Hehicles Answer: % #iff: + Topic: 18. $ustainability an' $upply %hain #rivers earning *utcome: %ompare common approaches to supply chain 'esign
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+,) Accor'ing to its +711 %$ report9 BBBBBBBB has 'esigne' an' opene' a viable store prototype that is up to +0 to ,7 percent more energy efficient an' pro'uces up to ,7 percent fewer greenhouse gas emissions compare' to the +770 baseline. A) $tarbucs &) TI @a== %) -almart #) ?mart Answer: % #iff: + Topic: 18. $ustainability an' $upply %hain #rivers earning *utcome: %ompare common approaches to supply chain 'esign +) -almart has wore' to convert BBBBBBBB at its stores from a cost to a profit generator. A) energy usage &) waste generation %) water consumption #) re'uce' pacaging Answer: & #iff: + Topic: 18. $ustainability an' $upply %hain #rivers earning *utcome: %ompare common approaches to supply chain 'esign +0) -almart reporte' that in %alifornia9 over BBBBBBBB percent of waste has been 'iverte' from lan'fills an' ma'e into something else that pro'uces revenue. A) +0 &) 7 %) 47 #) 87 Answer: # #iff: + Topic: 18. $ustainability an' $upply %hain #rivers earning *utcome: %ompare common approaches to supply chain 'esign +4) BBBBBBBB has wore' har' to reuse heat energy from boilers in its pro'uction process an' re'uce its total water footprint. A) -almart &) %oca5%ola %) &@ #) $tarbucs Answer: & #iff: + Topic: 18. $ustainability an' $upply %hain #rivers earning *utcome: %ompare common approaches to supply chain 'esign
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+;) BBBBBBBB who wore' with their e>uipment supplier9 $iemens HA9 to create a new pro'uction process that cut costs an' emissions by using local iron ore that was of lower >uality but cheaper. A) -almart &) %oca5%ola %) osco #) $tarbucs Answer: % #iff: + Topic: 18. $ustainability an' $upply %hain #rivers earning *utcome: %ompare common approaches to supply chain 'esign +8) -hat type of inventory is one of the most 'amaging from a sustainability perspective A) aw materials &) -or in process %) Finishe' goo's #) an'fill Answer: # #iff: 1 Topic: 18. $ustainability an' $upply %hain #rivers AA%$&: eflective Thining $ills earning *utcome: %ompare common approaches to supply chain 'esign +3) The sustainability 'amage from lan'fill a''itives comes in which form A) otential energy lost &) @aterials lost %) Terrible smell #) &oth A an' & Answer: # #iff: 1 Topic: 18. $ustainability an' $upply %hain #rivers earning *utcome: %ompare common approaches to supply chain 'esign ,7) BBBBBBBB can be use' to assess the environmental impacts associate' with a pro'uctGs life from cra'le to grave. A) %@ &) $@ %) %A #) @ Answer: A #iff: , Topic: 18. $ustainability an' $upply %hain #rivers earning *utcome: %ompare common approaches to supply chain 'esign
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,1) BBBBBBBB re'uce' the amount of harmful phosphates in laun'ry an' 'ish 'etergents in the Americas region by 1.0 percent in +711 with a goal of reaching a re'uction of ;7 percent. A) -almart &) &A$F %) ,@ #) roctor ( amble Answer: A #iff: , Topic: 18. $ustainability an' $upply %hain #rivers earning *utcome: %ompare common approaches to supply chain 'esign ,+) BBBBBBBB has always wore' har' to 'esign pro'ucts that can be shippe' flat to achieve high volume an' weight 'ensity 'uring transportation. As a result9 the company not on ly lowers its transportation costs9 it also re'uces emissions an' energy use. A) -almart &) ?"A %) ,@ #) roctor ( amble Answer: & #iff: , Topic: 18. $ustainability an' $upply %hain #rivers earning *utcome: %ompare common approaches to supply chain 'esign ,,) The presence of lea' paint in some of its most popular toys force' BBBBBBBB to recall hun're's of thousan's of toys sol' between April an' Iuly of +77;. A) -almart &) asbro %) @attel #) emco Answer: % #iff: + Topic: 18. $ustainability an' $upply %hain #rivers earning *utcome: %ompare common approaches to supply chain 'esign ,) BBBBBBBB continues to be one of the biggest challenges to improve' supply chain sustainability. A) oo' information &) -aste generation %) -ater consumption #) e'ucing pacaging Answer: A #iff: + Topic: 18. $ustainability an' $upply %hain #rivers AA%$&: eflective Thining $ills earning *utcome: %ompare common approaches to supply chain 'esign
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,0) -almart implemente' a web5base' scorecar' that evaluate' the pacaging of each pro'uct along nine metrics which inclu'e' A) cube utiliCation. &) 'istance travele'. %) recycle' content. #) &oth A an' % Answer: # #iff: + Topic: 18. $ustainability an' $upply %hain #rivers earning *utcome: %ompare common approaches to supply chain 'esign ,4) This company has not hit its targets for the use of renewable energy because these sources have higher costs compare' to other sources of energy. n general9 the public has not been willing to pay for the a''e' costs. A) -almart &) ?"A %) &@ #) ,@ Answer: A #iff: 1 Topic: 18. $ustainability an' $upply %hain #rivers earning *utcome: %ompare common approaches to supply chain 'esign ,;) ui'e an' Han -assenhove 2+773) 'escribe three scenarios where a supply chain may han'le returns. -hich is not one of these A) ro'uct nee's repairing &) ro'uct can be recycle' %) ro'uct nee's efficient transportation to lan'fill #) ro'uct can be remanufacture' Answer: % #iff: 1 Topic: 18.0 %lose' oop $upply %hains AA%$&: eflective Thining $ills earning *utcome: %ompare common approaches to supply chain 'esign ,8) These two companies have also set aggressive targets for their suppliers to improve overall supply chain sustainability. A) -almart an' ?"A &) &@ an' ,@ %) @attel an' asbro #) Apple an' $tarbucs Answer: A #iff: 1 Topic: 18. $ustainability an' $upply %hain #rivers earning *utcome: %ompare common approaches to supply chain 'esign
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,3) @c#onough an' &raungart 2+77+) 'iscuss the importance of BBBBBBBB 'esign if we are to truly limit the lan'fill inventory generate' by a supply chain. A) cra'le to grave &) cra'le to cra'le %) manageable sustainability #) recyclable content Answer: & #iff: + Topic: 18. $ustainability an' $upply %hain #rivers earning *utcome: %ompare common approaches to supply chain 'esign 7) The goal of every supply chain shoul' be to trac its A) lan'fill inventory. &) transportation utiliCation. %) water consumption. #) pacaging materials. Answer: A #iff: + Topic: 18. $ustainability an' $upply %hain #rivers AA%$&: eflective Thining $ills earning *utcome: %ompare common approaches to supply chain 'esign
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18., "ssay Questions 1) #iscuss the role of sustainability supply chains. Answer: This is a general >uestion an' many answers woul' suffice in answering it. Answers shoul' be similar to the following comments. "ach supply chain is only a small part of the worl' it resi'es in. !ltimately the health an' survival of every in'ivi'ual 'epen's on the health of the worl' aroun' us. t is thus important to e=pan' the goal of a supply chain beyon' the interests of its participants 2which the supply chain surplus represents) to others that may be affecte' by supply chain 'ecisions. t is in this conte=t that the +1st century has seen a growing focus on sustainability. The focus on sustainability has increase' as large countries lie &raCil9 %hina an' n'ia have grown. *n the one han'9 the growth of emerging marets is improving global living stan'ar's in a way that perhaps has not happene' before in human history. *n the other han'9 this growth puts pressure on resources an' the environment in a way that has also never happene' before. t has become increasingly clear that if supply chains 'o not become much more sustainable than they have been in the past9 the worl'Gs resources an' environment cannot sustain this level of growth. #iff: + Topic: 18.1 The ole of sustainability in a $upply %hain AA%$&: eflective Thining $ills earning *utcome: %ompare common approaches to supply chain 'esign +) #iscuss the factors 'riving an increase' focus on sustainability. Answer: First9 they can be 'ivi'e' into three 'istinct categories: 1. e'ucing ris an' improving the financial performance of the supply chain +. Attracting customers who value sustainability ,. @aing the worl' more sustainable @ost action has been observe' primarily when a focus on sustainability re'uces ris for the supply chain an' improves financial performance. @uch less success has been 'riven by customer 'eman' or the 'esire to mae the worl' more sustainable. t is interesting to note that there is significant opportunity even if supply chains only focus on the areas that re'uce ris an' improve financial performance. %ustomers to this point have not been willing to pay e=tra for sustainable pro'ucts as a whole even though many customers are environmentally sensitive. As such9 macro policies may be one of the best options for improving the sustainability of all supply chains. #iff: + Topic: 18.1 The ole of sustainability in a $upply %hain AA%$&: eflective Thining $ills earning *utcome: %ompare common approaches to supply chain 'esign
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,) -hat are the challenges to greater sustainability pose' by the trage'y of the commons Answer: The tragedy of the commons is a 'ilemma arising when the common goo' 'oes not align perfectly with the goo' of in'ivi'ual entities. @any actions that improve sustainability of a supply chain impose costs that are local 2to an in'ivi'ual9 a firm9 supply chain or country) but provi'e common benefits that are more global. n contrast9 a 'isregar' for sustainability provi'es benefits that are local but costs that are share' globally. As a result9 it can be 'ifficult to encourage sustainability without some e=ternal pressure either in the form of a public man'ate or economic incentive. #iff: + Topic: 18.+ The Trage'y of the %ommons AA%$&: eflective Thining $ills earning *utcome: %ompare common approaches to supply chain 'esign ) -hat are some metrics that can be use' to measure sustainability for a supply chain Answer: There are many metrics J both >uantitative an' >ualitative J that can be use' to measure sustainability in a supply chain. $ome measures mentione' in the chapter inclu'e energy consumption9 water consumption9 greenhouse gas emission9 an' waste generation. t is important that these metrics be trace' across as wi'e a scope of the supply chain as possible. *ne measure 'iscusse' at length was that of lan'fill inventory. A >ualitative measure of lan'fills woul' be the amount of un'esirable o'or create' by the lan'fill inventory. A following >uantitative measure is the loss of value for potential pro'uction or resi'ential 'evelopment 'ue to the inherent o'ors. #iff: + Topic: 18., ?ey @etrics for $ustainability AA%$&: eflective Thining $ills earning *utcome: %ompare common approaches to supply chain 'esign 0) -hat are some opportunities for improve' sustainability in various supply chain 'rivers Answer: There are many 'rivers associate' with improve' sustainability for supply chains. Facilities can be re'esigne' to re'uce both energy use an' emissions. ro'ucts shoul' be 'esigne' with a Kcra'le to cra'leK philosophy to 'ecrease lan'fill inventory an' increase the reuse of material. #esigning pro'ucts to limit pacaging an' improve transportation 'ensity helps re'uce costs as well as emissions 'uring transportation. iven that any one firm is only a small fraction of a supply chains impact on the environment9 it is critical that powerful players wor with the e=ten'e' supply chain to improve sustainability. %learly 'efine' stan'ar's for measurement an' reporting of performance are important if sustainability is to improve across supply chains. Finally9 a significant 'river of improve' sustainability will be customersG willingness to rewar' successful supply chains. #iff: + Topic: 18. $ustainability an' $upply %hain #rivers AA%$&: eflective Thining $ills earning *utcome: %ompare common approaches to supply chain 'esign
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