30) ________ 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
31) 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
32) 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
33) 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.
34) 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
35) 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.
36) ________ 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
37) ________ 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
38) 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
39) 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
40) ________ 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
41) Any supply chain design innovation that lowers transportation costs also tends to reduce
A) delivery time.
B) emissions.
C) consumer cost.
D) market share.
42) ________ 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
43) ________ 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
44) 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
45) ________ 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
46) 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
47) 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
48) 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
49) 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
50) The goal of every supply chain should be to track its
A) landfill inventory.
B) transportation utilization.
C) water consumption.
D) packaging materials.
51) 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.
52) 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.
53) 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.
54) 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.
55) The Pay as You Throw (PAYT) model is designed to
A) increase recycling.
B) decrease throwing.
C) increase consumption.
D) decrease consumption.
56) Which of these does not fit with the “polluter pays” principle?
A) Advance disposal fees
B) Take back mandates
C) Design for recycling
D) Deposit refund programs
57) Which of these industries features an extremely high cost of recycling?
A) Print media
B) Bottling
C) Consumer electronics
D) Packaging
58) Much of the actual cost of recycling or remanufacturing is directly linked to
A) the repair.
B) the logistics.
C) the production.
D) the design.
59) For individuals and firms to focus on sustainability, it is crucial that they
A) reject the model of maximization of shareholder wealth as the firm objective.
B) adhere to ISO 14000 standards.
C) internalize the monetary value of the social/environmental cost of their actions.
D) include language in the corporate mission, vision, and values statements about sustainability.
60) Reducing greenhouse gas emissions was most cost effectively achieved by
A) rejecting the model of maximization of shareholder wealth as the firm objective.
B) adherence to ISO 14000 standards.
C) subsidizing companies that do not release greenhouse gases.
D) charging for emissions.
61) Under a carbon tax system, the price of emissions is
A) the tax rate set directly by the regulatory authority.
B) decided by the emitters.
C) determined by the fraction of total carbon assignable to the company.
D) agreed upon by all firms competing for the same pool of customers.
62) Under a cap and trade system, the price of emissions is
A) determined directly as a function of the output.
B) determined indirectly and can change.
C) determined indirectly and is invariant.
D) determined directly and is invariant.
63) The market for carbon allowances
A) does not exist in a hybrid cap and trade system.
B) is a key element of a carbon tax system.
C) can result in a heavier polluter buying allowances from a company with lower carbon output.
D) is set by the regulatory authority.
64) One advantage of a carbon tax system over a cap and trade system is
A) the carbon tax system is less expensive.
B) the carbon tax system is more expensive.
C) that emissions under the cap and trade system cannot be monitored by outside agencies.
D) the carbon tax system displays more price stability.
65) An energy exporting country stands to gain
A) under a cap and trade system if the supply of crude is kept below the level achieved with a
price on emissions.
B) under a cap and trade system if the supply of crude is kept over the level achieved with a price
on emissions.
C) under a carbon tax system if the supply of crude is kept below the level achieved with a price
on emissions.
D) under a carbon tax system if the supply of crude is kept over the level achieved with a price
on emissions.
66) A cap and trade system can achieve price stability as long as
A) a price floor is established.
B) intertemporal banking of emission allowances is allowed.
C) both a price floor and intertemporal banking of emissions allowances are allowed.
D) both a price floor and a price ceiling are established.
27
17.3 Essay Questions
1) Discuss the role of sustainability supply chains.
Answer: This is a general question and many answers would suffice in answering it. Answers
should be similar to the following comments.
2) Discuss the factors driving an increased focus on sustainability.
Answer: First, they can be divided into three distinct categories:
3) What are the challenges to greater sustainability posed by the tragedy of the commons?
4) What are some metrics that can be used to measure sustainability for a supply chain?
5) What are some opportunities for improved sustainability in various supply chain drivers?