Chapter 4 Concept Checks

In a recent U.S. retailer survey, _____ of respondents claimed their organizations were either currently enhancing their ethical sourcing capabilities or planned to do so in the future.

92%

The term "benchmarking" as used in business firms is:

A practice where companies attempt to learn and apply the best practices of other companies

Check My Work Which of the following is NOT a step suggested in the Supply Chain Sourcing Strategy Framework?

Compare supplier prices based on the lowest cost bid.

According to the text, which of the following is one of the most effective supply chain integrative techniques?

Early supplier involvement

Which of the following is NOT a key area to focus on, in order to establish sustainable sourcing, as identified by a U.K. Food Industry Group on Ethical Trade?

Procurement rationalization

Which of the following is NOT a step used in maintaining a successful strategic alliance program?

Supplier managing inventory at customers' site

Which of the following hastened many organizations' plans to institute better supply chain strategies in the recent past?

The British vote to exit the EU

The Ethical Trading Initiative (ETI) is:

An alliance of organizations agreeing to implement the ETI Base Code.

Which of the following can be a result of successful strategic supplier alliances?

Better market penetration Higher return on investment Access to new technologies and knowledge

Identifying and selecting environmentally and socially conscious suppliers is one trend followed by firms utilizing:

Ethical and sustainable sourcing

One benefit from benchmarking sourcing practices is:

Firms can learn through others experiences the methods and tools that work the best

Environmental supplier certification programs can assist companies by doing which of the following?

Identifying rogue suppliers before they can cause problems or disruptions in their supply chains

Which of the following should NOT be used as assessment criteria to evaluate the purchasing department's performance?

Lowering inventory turnover rates

Firms assess their sourcing capabilities because:

Monitoring the purchasing function's performance, helps firms to continuously improve their products and processes

An important measurement used in supply base rationalization initiatives would include which of the following?

The suppliers' greenhouse gas emissions

According to the text, which of the following two approaches are used in deciding whether or not an action is ethical?

Utilitarianism and rights & duties

A firm decides to intentionally increase purchases from ethnic minority businesses. This decision can be considered:

ethical sourcing

The Amazon Kindle and Tesla's Model S automobile are two examples of:

innovative products

Which of the following terms refers to an act that creates the greatest good for the greatest number of people?

utilitarianism

Green purchasing is a practice aimed at ensuring that purchased products or materials meet environmental objectives of the organization such as:

waste reduction