SCM Chapter 18

A focus on sustainability allows a supply chain to better serve more conscious customers while often improving supply chain performance.

True

Facilities often offer the best opportunity to simultaneously improve the environmental and financial performance through innovation.

True

For most firms, the extent of direct emissions is typically only a small fraction of the extent of indirect emissions in the supply chain.

True

Hardin (1968) described the tragedy of the commons as a dilemma arising when the common good does not align perfectly with the good of individual entities.

True

________ can be used to assess the environmental impacts associated with a product's life from cradle to grave. A) CRM B) SRM C) LCA D) MRP

A) CRM

________ continues to be one of the biggest challenges to improved supply chain sustainability. A) Good information B) Waste generation C) Water consumption D) Reducing packaging

A) Good information

The factors driving an increased focus on sustainability can be divided into three distinct categories. Which of the following is not one of these categories? A) Increasing revenue for sustainability initiatives B) Making the world more sustainable C) Attracting customers who value sustainability D) Reducing risk and improving the financial performance of the supply chain

A) Increasing revenue for sustainability initiatives

In the context of greenhouse gas emission, the GHG protocol initiative defines levels of scope. This level refers to emissions from GHG sources that are owned or controlled by the reporting entity. A) Scope 1 B) Scope 2 C) Scope 3 D) Scope 4

A) Scope 1

In the context of greenhouse gas emission, the GHG protocol initiative defines levels of scope. This level refers to indirect emissions from grid-sourced electricity and other utility services of heat, steam and cooling. A) Scope 1 B) Scope 2 C) Scope 3 D) Scope 4

B) Scope 2

Unilever, the Dutch-British consumer goods giant has invested significant effort to help emerging economies such as Brazil and India wrestle with poverty, water scarcity and climate change. The company sees ________ of its sales and the majority of its growth coming from emerging economies. A) almost 25% B) almost 50% C) almost 60% D) almost 75%

B) almost 50%

McDonough and Braungart (2002) discuss the importance of ________ design if we are to truly limit the landfill inventory generated by a supply chain. A) cradle to grave B) cradle to cradle C) manageable sustainability D) recyclable content

B) cradle to cradle

Much less success for sustainability initiatives has been driven by A) increased revenue for sustainability initiatives. B) customer demand. C) attracted customers who value sustainability. D) reduced risk and improving the financial performance of the supply chain.

B) customer demand.

A(n) ________ measure of performance is more effective at capturing improvement. A) scope B) relative C) absolute D) statistical

B) relative

A(n) ________ measure of performance is more effective at capturing sustainability improvement. A) scope B) relative C) absolute D) statistical

B) relative

Walmart has worked to convert ________ at its stores from a cost to a profit generator. A) energy usage B) waste generation C) water consumption D) reduced packaging

B) waste generation

Walmart reported that in California, over ________ percent of waste has been diverted from landfills and made into something else that produces revenue. A) 25 B) 40 C) 60 D) 80

D) 80

The sustainability damage from landfill additives comes in which form? A) Potential energy lost B) Materials lost C) Terrible smell D) Both A and B

D) Both A and B

Walmart implemented a web-based scorecard that evaluated the packaging of each product along nine metrics which included A) cube utilization. B) distance traveled. C) recycled content. D) Both A and C

D) Both A and C

Metrics that would typically be in corporate social responsibility (CSR) reports would contain A) revenue. B) social. C) environmental. D) Both B and C

D) Both B and C

What type of inventory is one of the most damaging from a sustainability perspective? A) Raw materials B) Work in process C) Finished goods D) Landfill

D) Landfill

In the context of greenhouse gas emission, indirect emissions would NOT include A) purchased materials. B) outsourced activities. C) contractor owned vehicles. D) all of the above

D) all of the above

Most concrete action has been observed primarily when a focus on sustainability A) increases revenue for sustainability initiatives. B) makes the world more sustainable. C) attracts customers who value sustainability. D) reduces risk and improving the financial performance of the supply chain.

D) reduces risk and improving the financial performance of the supply chain.

A focus on sustainability allows a supply chain to better serve more conscious customers while often reducing supply chain performance.

False

The Intergovernmental Panel on Climate Change, a United Nations body that has been assessing global warming since 1990, has written that even though most of the buildup of carbon dioxide in the atmosphere has come from the United States and Western Europe, it is poorer countries that are closer to the equator that are likely to pay the biggest price.

True

Walmart started its focus on sustainability as a defensive move given the beating it was taking from environmental activists.

True

In the context of greenhouse gas emission, the GHG protocol initiative defines three levels of scope. The following scope is referred to as direct emissions. A) This scope refers to emissions from GHG sources that are owned or controlled by the reporting entity. B) This scope refers to indirect emissions from grid-sourced electricity and other utility services of heat, steam and cooling. C) This scope refers to the inclusion of other indirect emissions coming from sources such as the production of purchased materials, outsourced activities, contractor owned vehicles, waste disposal, and employee business travel. D) This scope refers to the corporate responsibility for direct discharging of emissions into public water systems.

A) This scope refers to emissions from GHG sources that are owned or controlled by the reporting entity.

This company has not hit its targets for the use of renewable energy because these sources have higher costs compared to other sources of energy. In general, the public has not been willing to pay for the added costs. A) Walmart B) IKEA C) IBM D) 3M

A) Walmart

________ reduced the amount of harmful phosphates in laundry and dish detergents in the Americas region by 14.5 percent in 2011 with a goal of reaching a reduction of 70 percent. A) Walmart B) BASF C) 3M D) Proctor & Gamble

A) Walmart

These two companies have also set aggressive targets for their suppliers to improve overall supply chain sustainability. A) Walmart and IKEA B) IBM and 3M C) Mattel and Hasbro D) Apple and Starbucks

A) Walmart and IKEA

Walmart reduced its energy consumption by A) adding skylights for natural light. B) reducing packaging. C) milk jug redesign. D) better transportation routing of trucks.

A) adding skylights for natural light.

In the short to medium term, an improved focus on sustainability provides benefits that A) are shared but costs that may be local to a firm. B) are local to firms but a cost that is global. C) are shared and costs that are global. D) are local and costs that are global.

A) are shared but costs that may be local to a firm.

In the context of greenhouse gas emission, direct emissions are A) controlled by the reporting entity. B) created through waste disposal. C) come from utility based services. D) come from employee based travel.

A) controlled by the reporting entity.

Almost 40 percent of ________ could be achieved at negative marginal costs, meaning that investing in these options would generate positive economic returns over their lifecycle. A) greenhouse gas abatement B) fuel consumption initiatives C) increased customer base D) improved company reputation

A) greenhouse gas abatement

The goal of every supply chain should be to track its A) landfill inventory. B) transportation utilization. C) water consumption. D) packaging materials. Answer: A

A) landfill inventory.

In the textbook, a detailed analysis by Abbott indicated that their indirect emissions were about ________ times their direct emissions. A) 1 to 5 B) 6 to 14 C) 15 to 19 D) 20 to 22

B) 6 to 14

From an environmental perspective, there are four important categories that all firms should measure and report. Which of the following is not one of these? A) Water consumption B) CO2 emissions C) Energy consumption D) Waste generation

B) CO2 emissions

________ is a mechanism that constrains the aggregate emissions by creating a limited number of tradeable emission allowances, which emission sources must secure and surrender in proportion to their emissions. A) Command-and-control B) Cap-and-trade C) Cap-and-control D) Emissions tax

B) Cap-and-trade

________ has worked hard to reuse heat energy from boilers in its production process and reduce its total water footprint. A) Walmart B) Coca-Cola C) IBM D) Starbucks

B) Coca-Cola

________ has always worked hard to design products that can be shipped flat to achieve high volume and weight density during transportation. As a result, the company not only lowers its transportation costs, it also reduces emissions and energy use. A) Walmart B) IKEA C) 3M D) Proctor & Gamble

B) IKEA

There are major barriers to an increased focus on sustainability listed in the textbook. Which of the following is not one of these? A) Customers' unwillingness to pay a premium for green products B) Insufficient return on investment C) Difficulty of implementing sustainable programs D) Difficulty evaluating sustainability across a product life cycle

C) Difficulty of implementing sustainable programs

________ tend to be significant consumers of energy and water and emitters of waste and greenhouse gases and thus offer significant opportunities for profitable improvement. A) Employees B) Production processes C) Facilities D) Vehicles

C) Facilities

The presence of lead paint in some of its most popular toys forced ________ to recall hundreds of thousands of toys sold between April and July of 2007. A) Walmart B) Hasbro C) Mattel D) Remco

C) Mattel

________ who worked with their equipment supplier, Siemens VAI, to create a new production process that cut costs and emissions by using local iron ore that was of lower quality but cheaper. A) Walmart B) Coca-Cola C) Posco D) Starbucks

C) Posco

Guide and Van Wassenhove (2009) describe three scenarios where a supply chain may handle returns. Which is not one of these? A) Product needs repairing B) Product can be recycled C) Product needs efficient transportation to landfill D) Product can be remanufactured

C) Product needs efficient transportation to landfill

In the context of greenhouse gas emission, the GHG protocol initiative defines levels of scope. This level refers to the inclusion of other indirect emissions coming from sources such as the production of purchased materials, outsourced activities, contractor owned vehicles, waste disposal, and employee business travel. A) Scope 1 B) Scope 2 C) Scope 3 D) Scope 4

C) Scope 3

According to its 2011 CSR report, ________ has designed and opened a viable store prototype that is up to 25 to 30 percent more energy efficient and produces up to 30 percent fewer greenhouse gas emissions compared to the 2005 baseline. A) Starbucks B) TJ Maxx C) Walmart D) Kmart

C) Walmart

The disadvantage of using a(n) ________ measure is that a drop in supply chain sales and production (for example in a downturn) will show an improved absolute measure of energy consumption even though the company may not have changed anything. A) scope B) relative C) absolute D) statistical

C) absolute

Customers have usually backed up words about the importance of sustainability with a willingness to pay more for sustainable products.

False

Hardin (1968) described the tragedy of the commons as a dilemma arising when the common good aligns perfectly with the good of individual entities.

False

In reality, there are no actions in a supply chain that improve both sustainability and supply chain surplus.

False