Operations Management, 12e (Heizer/Render/Munson)
Supplement 5 Sustainability in the Supply Chain
Section 1 Corporate Social Responsibility
1) Meeting the needs of the present without compromising the ability of future generations to meet their
needs is known as corporate social responsibility.
2) Internet-based technologies today allow consumers, communities, public interest groups, and
regulators to be well informed about an organization’s performance.
3) What does CSR stand for?
A) consumer sustainability requirements
B) critical sustainability ratio
C) corporate social responsibility
D) corporate sustainability record
E) corporate society ratio
4) Corporate social responsibility involves managerial decision making that considers what three
impacts?
A) environmental, legal, and financial
B) environmental, legal, and societal
C) educational, environmental, and societal
D) societal, legal, and financial
E) environmental, societal, and financial
5) Which of the following refers to developing policies and practices that enhance the competiveness of
an organization while advancing the economic and social conditions of the community in which it
operates?
A) the commons
B) a systems view
C) the triple bottom line
D) shared value
E) carbon footprint
6) Companies that practice ________ introduce policies that consider environmental, societal, and
financial impacts in their decision making.
7) ________ technologies today allow consumers, communities, public interest groups, and regulators to
be well informed about an organization’s performance.
8) Corporate social responsibility involves managerial decision making that considers what three
impacts?
9) Many firms approach corporate social responsibility through the concept of “shared value.” What is
meant by “shared value”?
10) Three concepts that have proven helpful as managers consider sustainability are: ________, ________,
________.
11) Dow Chemical finding both profit and social benefits in canola and sunflower seeds is an example of
the concept of ________.
Section 2 Sustainability
1) Managerial decision making that considers environmental, societal, and financial impacts is known as
sustainability.
2) Sustainability is often associated with corporate social responsibility.
3) Those resources held in the common are often misallocated.
4) Firms that do not consider the impact of their decisions on all of their stakeholders see reduced sales
and profits.
5) A measure of the total greenhouse gas emissions caused directly or indirectly by an organization, a
product, an event, or a person is the nitrogen footprint.
6) Economic sustainability means appropriately allocating scarce resources to make a profit.
7) Social and environmental sustainability do not exist without economic sustainability.
8) What refers to meeting the needs of the present without compromising the ability of future generations
to meet their needs?
A) corporate social responsibility
B) economic sustainability
C) carbon footprint
D) sustainability
E) closed-loop supply chains
9) What refers to looking at a product’s life from design to disposal, including all the resources required?
A) the commons
B) a systems view
C) the triple bottom line
D) shared value
E) carbon footprint
10) Resources held by the public are also said to be held in what?
A) escrow
B) the system
C) contempt
D) perpetuity
E) the common
11) One way to think of sustainability is to consider the systems necessary to support the triple bottom
line of the three Ps, which are:
A) price, promotion, and product.
B) people, places, and products.
C) people, planet, and profit.
D) price, promotion, and profit.
E) people, pollution, and profit.
12) Companies can improve the triple bottom line with sustainability by minimizing what four things?
A) raw material, energy, water, and waste
B) raw material, transport, manufacture, and disposal
C) people, planet, profit, and pollution
D) pollution, carbon footprint, profit, and people
E) lawsuits, advertisements, coupons, and layoffs
13) The measure of total greenhouse gas emissions caused directly or indirectly by an organization, a
product, an event, or a person is known as:
A) radioactive decay.
B) nitrogen footprint.
C) ozone factor.
D) pollution index.
E) carbon footprint.
14) The carbon footprint is defined as a measure of total greenhouse gas emissions caused directly or
indirectly by what four things?
A) a factory, an office building, a warehouse, or a truck
B) an organization, a product, an event, or a person
C) an organization, a product, an animal, or a person
D) an organization, a government, a product, or a person
E) a product, an event, a person, or an animal
15) Which of the following refers to how companies remain in business?
A) corporate social responsibility
B) economic sustainability
C) carbon footprint
D) sustainability
E) closed-loop supply chains
16) The term ________ refers to meeting the needs of the present without compromising the ability of
future generations to meet their needs.
17) Inputs to a production system that do not have market prices are those held in the ________.
18) Inputs to a production system that are held in the common do not have market ________.
19) The triple bottom line includes the three Ps of ________.
20) The carbon footprint measures total ________ caused directly or indirectly by an organization, a
product, an event, or a person.
21) To support economic sustainability, firms may supplement standard financial accounting and
reporting with some version of ________.
22) True sustainability involves thinking not only about environmental resources but also about what
additional aspects?
23) Identify three ways in which society is trying to address the misallocation of resources held in the
common.
24) Provide at least two examples of misallocation of resources held in the common.
25) Explain how to improve the triple bottom line with sustainability. (Hint: answer can be based on
Figure S5.1.)
26) Sustainability suggests that supplier selection and performance criteria should evaluate what types of
issues with respect to the employees of the suppliers?
27) Describe the four ways in which Walmart is accomplishing its commitment to work with its suppliers
to sell quality products that are safe, that create value for customers, and that are produced in a
sustainable way.
28) Describe some ways in which operations managers should address employee working conditions.
29) Social accounting can measure what types of things?
1) The operations manager‘s greatest opportunity to make substantial contributions to the company’s
environmental objectives occurs during product life cycle assessment.
2) Life cycle assessment determines which stage of the product life cycle that the product currently is in.
3) Reuse is one of the 3 Rs for sustainability.
4) One environmentally friendly approach to product design is to use lighter components.
5) A design for disassembly cost-benefit analysis compares the amount of revenue that might be
reclaimed against the cost of disposing of the product at its end–of-life.
6) UPS plans its truck routes with the fewest possible right turns.
7) What refers to analysis of environmental impacts of products from the design stage through end-of–
life?
A) ISO 14000
B) life cycle assessment
C) carbon footprint
D) economic sustainability
E) closed-loop supply chain analysis
8) What are the 3 Rs for sustainability?
A) reduce, reuse, and reclaim
B) reduce, reproduce, and recycle
C) reproduce, reuse, and recycle
D) reduce, reuse, and recycle
E) reduce, reclaim, and recycle
9) What is the most critical phase in product life cycle assessment?
A) product design
B) purchasing
C) production
D) shipping
E) disposal
10) What is sometimes referred to as the fourth “R” of sustainability?
A) reclaim
B) recover
C) renew
D) improved reputation
E) reproduce
11) What percentage of the 2012 Mercedes S-class is recyclable?
A) 25%
B) 50%
C) 75%
D) 95%
E) 100%
12) What type of supply chains consider forward and reverse product flows over the entire life cycle?
A) two-pronged
B) life cycle
C) closed-loop
D) socially responsible
E) end-to-end
13) Suppose that a firm has made the following computations for its design for disassembly: processing
cost per unit = $12.00, disposal cost per unit = $6.00, resale revenue per unit = $20.00, and recycling
revenue per unit = $7.00. What is the revenue retrieval for this product?
A) $27.00
B) $8.00
C) $9.00
D) $1.00
E) $20.00
14) A firm is considering five different product designs. Data concerning the design for disassembly for
each of the designs are provided in the table below. Which design appears to be the best environmental
design based on revenue retrieval opportunity?
Product Design
Resale Revenue
per Unit
Recycling
Revenue per
Unit
Processing Cost
per Unit
Disposal Cost
per Unit
1
$30.00
$12.00
$15.00
$40.00
2
$10.00
$10.00
$3.00
$1.00
3
$5.00
$55.00
$48.00
$10.00
4
$4.00
$2.00
$1.00
$0.50
5
$42.00
$3.00
$8.00
$32.00
A) Design 1
B) Design 2
C) Design 3
D) Design 4
E) Design 5
15) Products are more “environmentally friendly” when they are made:
A) using cheaper materials.
B) using less energy.
C) according to OSHA standards.
D) where environmental regulations are lax.
E) more difficult to disassemble.
16) Analysis of environmental impacts of products from the design stage through end–of-life is known as
________.
17) The 3 Rs for sustainability are ________.
18) ________ materials translate into better fuel economy, fewer carbon emissions, and reduced operating
cost.
19) Boeing’s use of epoxy composites and titanium graphite laminate represent the environmentally
friendly concept of ________.
20) Opportunities to reduce environmental impact during production typically revolve around the three
themes of ________.
21) ________ supply chains consider forward and reverse product flows over the entire life cycle.
22) Why is product design the most critical phase in product life cycle assessment?
23) What is the formula for revenue retrieval of a product that has reached the end of its life?
24) Suppose that a firm has made the following computations for its design for disassembly: processing
cost per unit = $13.00, disposal cost per unit = $9.00, resale revenue per unit = $22.00, and recycling
revenue per unit = $8.00. What is the revenue retrieval for this product?
25) A firm is considering three different product designs. Data concerning the design for disassembly for
each of the designs are provided in the table below. Which design appears to be the best environmental
design based on revenue retrieval opportunity?
Product Design
Resale Revenue
per Unit
Recycling
Revenue per
Unit
Processing Cost
per Unit
Disposal Cost
per Unit
1
$100
$10
$40
$5
2
$80
$50
$20
$20
3
$200
$25
$130
$20
26) A firm is comparing two designs for a new product. Data concerning the design for disassembly for
both designs are provided in the tables below. Which design appears to be the best environmental design
based on revenue retrieval opportunity?
Design 1:
Component
Resale Revenue
per Unit
Recycling
Revenue per
Unit
Processing Cost
per Unit
Disposal Cost
per Unit
A
$5.60
$8.90
$3.50
$2.85
B
$2.56
$3.67
$3.25
$4.00
C
$1.34
$4.32
$0.69
$3.34
Design 2:
Component
Resale Revenue
per Unit
Recycling
Revenue per
Unit
Processing Cost
per Unit
Disposal Cost
per Unit
A
$4.76
$5.68
$6.00
$2.13
B
$3.21
$5.28
$2.42
$3.59
C
$5.31
$6.98
$2.47
$4.90
27) What is the total vehicle life cycle cost of a car that has the information provided in the following
table?
Vehicle Purchase Cost
$34,000
Vehicle Operating Cost per Mile
$0.26
Useful Life of Vehicle
7 years
Miles per Year
20,000
Miles per Gallon
35
Average Fuel Price per Gallon
$4.10
Section 4 Regulations and Industry Standards
1) Some governments are implementing laws that mandate the outright reduction of GHG emissions by
forcing companies to pay taxes based on the amount of GHG emissions that are emitted.
2) ISO 9000 is a series of environmental management standards that contain five core elements.
3) The UNFCCC works on the “cap-and-trade” principle.
4) Within environmental regulation, the “cap-and-trade” principle essentially allows companies to buy
and sell the right to pollute.
5) What does ISO stand for?
A) Industry Standards Organization
B) International Safety Organization
C) Industrial Safety Organization
D) International Standards for Oxygen
E) International Organization for Standardization
6) What does UNFCCC stand for?
A) United National Federation Council on Climate Change
B) UN Federation for Climate Change Cooperation
C) Uniform National Framework Climate Change Code
D) UN Framework Convention on Climate Change
E) UN Foundation for the Consequences of Climate Change
7) What percentage of the manufacturing process from Subaru’s Lafayette, Indiana, plant goes to the
landfill?
A) 0%
B) 2%
C) 5%
D) 12.5%
E) 15%
8) The European Union Emissions Trading System works on what principle?
A) Thatcher’s Theory of the Commons
B) pollute-and-pay
C) socialism
D) cap-and-trade
E) tax the richer companies more to pay for pollution control
9) What allows companies in Europe to buy and sell allowances for the right to pollute?
A) UNFCCC
B) ISO 9000
C) EUETS
D) ISO 14000
E) EPA
10) Within environmental regulation, the “cap-and-trade” principle produces a market that allows
companies to purchase and sell what?
A) hats that promote environmental awareness
B) shares of stock in renewable energy sources
C) emission allowances
D) space in landfills
E) carbon reduction sweepers
11) Which of the following is true about ISO 14000 certification?
A) It can reduce exposure to liability.
B) It deals with environmental management.
C) It offers a good systematic approach to pollution prevention.
D) One of its core elements is life cycle assessment.
E) All of the above are true.
12) Design for ________ encourages designers to create products that can be taken apart and whose
components can be recovered, minimizing impact on the environment.
13) The European Union Emissions Trading System works on the ________ principle.
14) A series of environmental management standards established by the International Organization for
Standardization is called ________.
15) Identify two non-governmental organizations that provide guidance to businesses for reducing
environmental impacts from disposal of materials to reductions in greenhouse gas emissions.
16) Describe the European Union Emissions Trading System to combat climate change.
17) Identify the five core elements of ISO 14000.