Deck 17: Sustainability and the Supply Chain

Question 1

An example of a relative measure of emission output is pounds of CO2 per gallon of diesel fuel.

Answer 1

False

Question 2

There is greater environmental impact in the extended supply chain than there is within the main plant for most manufacturers.

Answer 2

True

Question 3

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

Answer 3

False

Question 4

In the short to medium term,a focus on supply chain sustainability tends to provide costs that are shared but benefits that are local to a firm or individual.

Question 5

The social pillar measures a firm's ability to address issues that are important for its workforce,customers,and society.

Question 6

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

Question 7

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

Question 8

A firm's new sustainability improvement initiative is best begun by focusing on resource reduction activities.

Question 9

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.

Question 10

Most supply chain design innovations that lower transportation costs paradoxically tend to increase fuel consumption and emissions.

Question 11

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

Question 12

An emissions tax is characterized as a progressive tax because it charges each entity a tax proportional to their environmental emissions.

Question 13

In a cap-and-trade approach,the government creates an infinite number of tradeable emission allowances that must be surrendered to the companies generating the largest emissions.

Question 14

In a command-and-control approach,the government or regulators help the common good by setting standards that everyone must adhere to.

Question 15

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

Question 16

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.

Question 17

Surveys in sustainable farming have revealed that the typical consumer is willing to pay 25% more for sustainable fare.

Question 18

It is more difficult to focus on sustainability at the supply chain level than at the individual firm level.

Question 19

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

Question 20

Simple awareness of what your own electricity consumption is usually reduces a consumer's electricity use by between 10% and 15%.

Question 21

Which of these tends to hinder a firm's implementation of sustainability measures?

A)Willingness of customers to pay more for sustainable goods
B)Insufficient return on investment
C)Ease of evaluating sustainability across a product life cycle
D)Creation of trade barriers

Question 22

________ 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

Question 23

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.

Question 24

________ is a social arrangement that encourages all participants to behave such that they do not contribute to the tragedy of the commons.

A)A zero sum game
B)Escalation of commitment
C)Mutual coercion
D)Barzini Red

Question 25

Under a cap-and-trade system,a firm that emits more than its share of carbon can buy allowances from a firm that emits less than its share.

Question 26

In general,the reverse logistics function for a manufacturer is more expensive to operate on a per unit basis than the forward logistics function that sends the products to market.

Question 27

Which of these statements is best?

A)Benefits and costs of sustainability programs fall equally across all supply chain members throughout most initiatives.
B)Customers tend to be vocal about sustainability and back up those words with their purchase decisions.
C)It is more difficult to maintain a focus on sustainability for a supply chain than for an individual firm.
D)Sustainability programs typically offer a clear and substantive ROI figure throughout their development and deployment.

Question 28

Which of these sustainability initiatives has NOT been a success for Starbucks?

A)Managing waste and conserving water and energy
B)Ensuring that working conditions are safe and humane
C)Reducing agrochemical use
D)Encouraging customers to bring a reusable coffee cup

Question 29

Walmart reduced its energy consumption by

A)adding skylights for natural light.
B)increasing packaging.
C)redesigning their logo.
D)routing trucks to make only right turns.

Question 30

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.

Question 31

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.

Question 32

If garbage collection services were billed based on the weight of refuse collected,most people would find a way to discard less and recycle more.

Question 33

Almost 40 percent of ________ could be achieved at negative marginal costs,meaning that investing in these options would generate positive economic returns over their life cycle.

A)greenhouse gas abatement
B)fuel consumption initiatives
C)increased customer base
D)improved company reputation

Question 34

Which of these illustrates the tragedy of the commons?

A)A major automotive manufacturer receives a shipment of faulty air bags and installs them anyway since most drivers don't have accidents.
B)Major industrialized nations generate the most pollution but poorer countries near the equator are most affected.
C)Each apartment dweller has a kitchen trash bag and carries it to a common dumpster in the apartment complex when it is full.
D)A bachelor has an impressive saltwater tank of tropical fish and feeds all of them from the same dispenser of fish food.

Question 35

A ________ approach requires a government or regulatory agency to establish and enforce standards.

A)slap and tickle
B)superior-inferior
C)laissez faire
D)command and control

Question 36

A carbon tax system is computed by multiplying the tax rate by the carbon emissions.

Question 37

Which of these approaches to solving the tragedy of the commons is considered a market approach?

A)Command-and-control
B)Mean absolute deviation
C)Cap-and-trade
D)Mutual coercion

Question 38

The primary reason for the general lack of design for remanufacturing is that remanufacturing is more expensive for a manufacturer.

Question 39

The phenomenon where each actor is incentivized to maximize his gain from a public asset at the expense of all others is

A)the tragedy of the commons.
B)cap-and-trade.
C)the closed loop.
D)the social pillar.

Question 40

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%

Question 41

In general,it is better for firms to measure and report both ________ and ________ measures of performance in order to capture improvement.

A)breadth;depth
B)relative;absolute
C)scope;sequence
D)statistical;qualitative

Question 42

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

Question 43

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

Question 44

Which of these is a relative measurement?

A)Tons
B)Kilowatt-hours
C)Parts per million
D)Kelvin

Question 45

Which of these approaches to solving the tragedy of the commons is considered a market approach?

A)Command-and-control
B)Dollar days
C)Mutual coercion
D)Emissions tax

Question 46

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

Question 47

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.

Question 48

Arguably,the most significant waste in any supply chain occurs when

A)the doors to the buildings are opened repeatedly.
B)products sit on store shelves waiting to be purchased.
C)a product is thrown into a landfill.
D)employees are terminated.

Question 49

In the context of greenhouse gas emission,direct emissions

A)are controlled by the reporting entity.
B)are created through waste disposal.
C)come from utility-based services.
D)come from employee-based travel.

Question 50

Which is an example of balancing peak load demand?

A)Car dealers offer rebates in July and August just before the next year's models are shipped to their lots.
B)An assistant dean signs all of the course substitution requests on Friday afternoon.
C)The minute a student hands in an exam,the professor feeds it through the grading machine.
D)The insurance agent sends in all claim forms on the last working day of the month.

Question 51

In general,it is better for firms to measure and report their performance using

A)absolute measurements.
B)relative measurements.
C)both absolute and relative measurements.
D)descriptive prose rather than numbers.

Question 52

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

Question 53

A(n)________ measure of performance is more effective at capturing sustainability improvement.

A)scope
B)relative
C)absolute
D)statistical

Question 54

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

Question 55

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

Question 56

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

Question 57

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

Question 58

Which of these is an absolute measurement?

A)Pounds per metric ton
B)Kilowatt-hours
C)Parts per million
D)Emissions per ton of output

Question 59

________ 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

Question 60

Metrics that would typically be in corporate social responsibility (CSR)reports would contain

A)revenue.
B)social.
C)environmental.
D)both social and environmental.

Question 61

Any supply chain design innovation that lowers transportation costs also tends to reduce

A)delivery time.
B)emissions.
C)consumer cost.
D)market share.

Question 62

________ 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)Procter & Gamble

Question 63

Remanufacturing helps improve profits as long as

A)the comparatively low margin of remanufactured to newly-produced products exists.
B)the comparatively high cost of remanufacturing to newly-produced products exists.
C)the fear exists that remanufactured products will be purchased instead of newly-produced products.
D)two distinct segments of demand exist for the product - one for new and one for old products.

Question 64

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

Question 65

________ has reduced the energy consumption of a location by 25 to 30 percent from their 2005 benchmark.

A)Walmart
B)BASF
C)3M
D)Procter & Gamble

Question 66

The polluter pays principle dictates that

A)recycling efforts are best aimed at the designer of the product.
B)the entity causing the pollution must bear the cost to society.
C)the recycler should receive compensation from the end user of the product.
D)the recycler should receive compensation from the designer of the product.

Question 67

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

Question 68

The major deterrent to remanufacturing is

A)the comparatively low margin of remanufactured to newly-produced products.
B)the comparatively high cost of remanufacturing to newly-produced products.
C)the fear that remanufactured products will be purchased instead of newly-produced products.
D)the loss of recycling volume from remanufactured products that do not enter the recycling stream.

Question 69

________ 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

Question 70

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

Question 71

________ 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

Question 72

The goal of every supply chain should be to track its

A)landfill inventory.
B)transportation utilization.
C)water consumption.
D)packaging materials.

Question 73

The Pay as You Throw (PAYT)model is designed to

A)increase recycling.
B)decrease throwing.
C)increase consumption.
D)decrease consumption.

Question 74

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

Question 75

________ 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

Question 76

Which of these statements is best?

A)The cost of a product ending up in the landfill is borne by the manufacturer.
B)The cost of producing a recyclable product is borne by society.
C)The cost of resources like water typically factor in the impact that a future water shortage would have on the area.
D)The cost of pollution inflicted on society is ideally paid by the polluter.

Question 77

________ 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

Question 78

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

Question 79

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

Question 80

The sustainability damage from landfill additives comes in which form?

A)Potential energy lost
B)Materials lost
C)Terrible smell
D)Both potential energy and materials lost