Question and Answer (2026/2027) | A+
Verified
• (True/False) The use of ethical and environmental certifications for suppliers is
decreasing. -✓✓ False
• (True/False) There are two approaches to deciding whether or not an action is
ethical. The first approach is utilitarianism. The second approach is force majeure.
-✓✓ False
• (True/False) Companies can design supply base rationalization initiatives based
in part on ethical and sustainable performance requirements. -✓✓ True
• (True/False) It is best for firms to learn through their own experiences the
methods and tools that work the best, rather than benchmarking. -✓✓ False
• (True/False) Sustainable sourcing considers the long-term impact on people,
profits, and the planet. -✓✓ True
• (True/False) Benchmarking is the practice of watching the mistakes other
businesses do and trying to avoid the same mistakes. -✓✓ False
• (True/False) Creating strategic supplier alliances benefits firms by increasing the
performance and value of suppliers as well as increasing brand awareness. -✓✓
True
• (True/False) In developing ethical and sustainable sourcing strategies, todays
companies use strategies like, "squeezing" or hard-bargaining suppliers to generate
a lower annual purchasing spend. -✓✓ False
• (True/False) Criteria to evaluate a purchasing department's performance should
include only quantitative assessments. -✓✓ False
,• (True/False) Rewarding suppliers for maintaining high levels of performance is
an important step used in maintaining a successful strategic alliance program. -✓✓
True
• (True/False) Ethical sourcing policies should NOT include use of independent
verification of supplier compliances. -✓✓ False
• (True/False) As described in the text, a "fair trade product" refers to one that is
manufactured or grown by a disadvantaged producer in a developing country that
receives a fair price for its good. -✓✓ True
• (True/False) Sourcing criteria for innovative products may be more closely
aligned with a supplier's quality reputation, delivery speed and flexibility, and
communication capabilities. -✓✓ True
• (True/False) There are not many resources available for firms seeking to learn
about and implement successful sourcing practices. -✓✓ False
• (True/False) A practice aimed at ensuring that purchased products or materials
meet the environmental objectives of the organization is referred to as green
purchasing. -✓✓ True
• (True/False) Early supplier involvement is one of the most effective supply chain
integration techniques. -✓✓ True
• (True/False) Reverse logistics has become an important trend in ethical and
sustainable sourcing. -✓✓ False
• (True/False) Because internationally recognized certifications like ISO 9000 are
becoming so common among suppliers, it is becoming more important that
purchasing firms develop internal certification programs that are geared toward the
specific needs of the purchasing organization. -✓✓ True
• (True/False) Firms assess their sourcing capabilities because the sourcing
function is one of the most value-enhancing functions in an organization. -✓✓
True
, • (True/False) Environmental supplier certifications can be used to identify rogue
suppliers before they can cause problems. -✓✓ True
• (True/False) It is important for firms to address the impact of ethical and
sustainable sourcing on other facets of the organization and its trading partners. -
✓✓ True
• (True/False) It is considered unethical for a firm to intentionally buy from
women-owned businesses. -✓✓ False
• (True/False) Developing a collaborative negotiation infrastructure includes four
steps: build a preparation process, develop a negotiation database, design a
negotiation launch process, and institute a feedback mechanism. -✓✓ True
• (True/False) The use of strategic supplier alliances, if successful, can result in
better market penetration, better service, and access to new technologies and
knowledge. -✓✓ True
• Which of the following is NOT a benefit of strategic supplier agreements?
A. Company and public recognition in the form of awards.
B. Access to in-house training seminars
C. Improve forecasting accuracy across product hierarchy
D. More business and/or longer contracts for higher performance -✓✓ C. Improve
forecasting accuracy across product hierarchy
• The use of environmental supplier certification programs assists companies by
which of the following?
A. Further developing existing alliances
B. Identifying companies who are the most popular with consumers
C. Helping communities who are in jeopardy of plant closures
D. Aggregate planning -✓✓ A. Further developing existing alliances
• Green purchasing is a practice aimed at ensuring that purchased products or
materials meet environmental objectives if the organization such as:
A. Exploiting product opportunities
B. Remanufacturing, and material reuse
C. Variable inspections
D. Aggregate planning -✓✓ B. Remanufacturing, and material reuse