OPERATIONS MANAGEMENT:
SUSTAINABILITY AND SUPPLY CHAIN
MANAGEMENT EXAM STUDY GUIDE 2026
COMPLETE QUESTIONS WITH CORRECT
DETAILED ANSWERS AND RATIONALES ||
100% GUARANTEED PASS <LATEST
VERSION>
Section 1: Core Concepts of Sustainability (Questions 1-20)
1. What are the three pillars of sustainability, often referred to as the "Triple Bottom Line"?
A) Profit, People, Planet
B) Economic, Ethical, Environmental
C) Efficiency, Equity, Ecology
D) Growth, Governance, Green
Rationale: Coined by John Elkington, the Triple Bottom Line (TBL) framework evaluates
performance based on three pillars: Profit (economic viability), People (social equity),
and Planet (environmental responsibility). It argues that companies should be measuring
success along all three dimensions.
2. In a TBL context, "People" refers to:
A) The company's shareholder value.
B) Fair and beneficial business practices toward labor, the community, and the region.
C) The demographic profile of its customers.
D) The management structure of the organization.
Rationale: The "People" pillar focuses on social sustainability. It encompasses fair labor
practices, community engagement, human rights, health and safety, and contributing to societal
well-being, ensuring the company operates ethically in its human context.
,3. The "circular economy" is an alternative to the traditional linear economy. What is its
primary goal?
A) To maximize the speed of production.
B) To eliminate waste and keep resources in use for as long as possible.
C) To centralize manufacturing in low-cost countries.
D) To focus exclusively on using renewable energy.
Rationale: A circular economy aims to decouple economic activity from the consumption of
finite resources. It is a regenerative system designed to minimize waste through reuse, sharing,
repair, refurbishment, remanufacturing, and recycling.
4. Which of the following is a key principle of the circular economy?
A) Planned obsolescence.
B) Cradle-to-Cradle design.
C) Take-Make-Dispose model.
D) Single-use packaging.
Rationale: Cradle-to-Cradle design is a foundational principle of the circular economy, where
products are designed so that at the end of their life, their materials can be fully reclaimed and
reused to create new products, thus creating a closed-loop system.
5. A company tracks its carbon footprint. This is a direct measure of its:
A) Water usage.
B) Total greenhouse gas emissions.
C) Solid waste sent to landfills.
D) Energy consumption from renewable sources.
Rationale: A carbon footprint is the total amount of greenhouse gases (including carbon dioxide
and methane) that are generated by an organization's actions, directly and indirectly.
6. What is the primary purpose of a Life Cycle Assessment (LCA)?
A) To assess the financial profitability of a product.
B) To evaluate the environmental impacts of a product throughout its entire life.
C) To determine the marketing strategy for a product launch.
D) To calculate the employee turnover rate during production.
Rationale: An LCA is a comprehensive methodology for assessing the environmental aspects
and potential impacts associated with a product, process, or service, from raw material
extraction (cradle) to disposal (grave).
7. Which stage of a product's life cycle typically has the highest environmental impact for an
electronic device like a smartphone?
,A) Raw material extraction and manufacturing.
B) Packaging and distribution.
C) Consumer use.
D) End-of-life disposal.
Rationale: For many electronics, the manufacturing phase is the most resource-intensive,
involving the mining of rare earth metals, energy-intensive processing, and assembly, which
collectively create a significant environmental burden.
8. The concept of "greenwashing" refers to:
A) Using green-colored packaging for products.
B) The process of recycling materials.
C) Making misleading claims about the environmental benefits of a product or practice.
D) Investing in renewable energy projects.
Rationale: Greenwashing is a deceptive marketing practice where a company spends more time
and money claiming to be "green" through advertising than on implementing business practices
that minimize environmental impact.
9. Which international standard provides guidelines for environmental management systems?
A) ISO 9001
B) ISO 14001
C) ISO 45001
D) ISO 27001
Rationale: ISO 14001 is the international standard that specifies requirements for an effective
Environmental Management System (EMS), helping organizations improve their environmental
performance.
10. A firm that adopts "lean" principles to reduce waste in its processes is directly
contributing to which pillar of sustainability?
A) Planet, by conserving resources.
B) People, by increasing employee morale.
C) Profit, but has no impact on Planet or People.
D) All three pillars equally.
Rationale: Lean manufacturing focuses on eliminating waste (or "Muda") in all forms—defects,
overproduction, waiting, etc. This directly benefits the Planet by reducing the consumption of
raw materials and energy, and often benefits Profit through cost savings and People through
improved workplace organization.
, 11. The "Social" pillar of sustainability is LEAST concerned with:
A) Workplace health and safety.
B) Community investment and development.
C) Ethical sourcing and labor practices.
D) Minimizing carbon emissions per unit produced.
Rationale: Minimizing carbon emissions is a primary concern of the Environmental ("Planet")
pillar. While a company's environmental actions can have social consequences, the direct
measurement of emissions is an ecological metric.
12. What does CSR stand for?
A) Corporate Supply-chain Responsibility
B) Customer Service and Relations
C) Corporate Social Responsibility
D) Centralized Stock Replenishment
Rationale: CSR (Corporate Social Responsibility) is a business model where companies integrate
social and environmental concerns in their business operations and interactions with their
stakeholders.
13. A company publicly commits to using 100% renewable energy by 2030. This is an example
of:
A) A carbon offset.
B) A sustainability mission or goal.
C) Greenwashing.
D) A circular economy strategy.
Rationale: This is a clear, time-bound sustainability goal focused on reducing the environmental
impact of the company's energy consumption.
14. The "tragedy of the commons" is a problem related to sustainability because it describes:
A) A lack of common safety standards in an industry.
B) The overuse of a shared resource by individuals acting in their own self-interest.
C) The high cost of common regulatory compliance.
D) The difficulty of finding common ground in international trade.
Rationale: This concept illustrates how shared resources (like clean air, oceans, or fisheries) can
be depleted when individuals or companies prioritize their own short-term gains over the long-
term health of the resource, leading to negative outcomes for all.
15. Which of the following is an example of an economic incentive for a company to become
more sustainable?
SUSTAINABILITY AND SUPPLY CHAIN
MANAGEMENT EXAM STUDY GUIDE 2026
COMPLETE QUESTIONS WITH CORRECT
DETAILED ANSWERS AND RATIONALES ||
100% GUARANTEED PASS <LATEST
VERSION>
Section 1: Core Concepts of Sustainability (Questions 1-20)
1. What are the three pillars of sustainability, often referred to as the "Triple Bottom Line"?
A) Profit, People, Planet
B) Economic, Ethical, Environmental
C) Efficiency, Equity, Ecology
D) Growth, Governance, Green
Rationale: Coined by John Elkington, the Triple Bottom Line (TBL) framework evaluates
performance based on three pillars: Profit (economic viability), People (social equity),
and Planet (environmental responsibility). It argues that companies should be measuring
success along all three dimensions.
2. In a TBL context, "People" refers to:
A) The company's shareholder value.
B) Fair and beneficial business practices toward labor, the community, and the region.
C) The demographic profile of its customers.
D) The management structure of the organization.
Rationale: The "People" pillar focuses on social sustainability. It encompasses fair labor
practices, community engagement, human rights, health and safety, and contributing to societal
well-being, ensuring the company operates ethically in its human context.
,3. The "circular economy" is an alternative to the traditional linear economy. What is its
primary goal?
A) To maximize the speed of production.
B) To eliminate waste and keep resources in use for as long as possible.
C) To centralize manufacturing in low-cost countries.
D) To focus exclusively on using renewable energy.
Rationale: A circular economy aims to decouple economic activity from the consumption of
finite resources. It is a regenerative system designed to minimize waste through reuse, sharing,
repair, refurbishment, remanufacturing, and recycling.
4. Which of the following is a key principle of the circular economy?
A) Planned obsolescence.
B) Cradle-to-Cradle design.
C) Take-Make-Dispose model.
D) Single-use packaging.
Rationale: Cradle-to-Cradle design is a foundational principle of the circular economy, where
products are designed so that at the end of their life, their materials can be fully reclaimed and
reused to create new products, thus creating a closed-loop system.
5. A company tracks its carbon footprint. This is a direct measure of its:
A) Water usage.
B) Total greenhouse gas emissions.
C) Solid waste sent to landfills.
D) Energy consumption from renewable sources.
Rationale: A carbon footprint is the total amount of greenhouse gases (including carbon dioxide
and methane) that are generated by an organization's actions, directly and indirectly.
6. What is the primary purpose of a Life Cycle Assessment (LCA)?
A) To assess the financial profitability of a product.
B) To evaluate the environmental impacts of a product throughout its entire life.
C) To determine the marketing strategy for a product launch.
D) To calculate the employee turnover rate during production.
Rationale: An LCA is a comprehensive methodology for assessing the environmental aspects
and potential impacts associated with a product, process, or service, from raw material
extraction (cradle) to disposal (grave).
7. Which stage of a product's life cycle typically has the highest environmental impact for an
electronic device like a smartphone?
,A) Raw material extraction and manufacturing.
B) Packaging and distribution.
C) Consumer use.
D) End-of-life disposal.
Rationale: For many electronics, the manufacturing phase is the most resource-intensive,
involving the mining of rare earth metals, energy-intensive processing, and assembly, which
collectively create a significant environmental burden.
8. The concept of "greenwashing" refers to:
A) Using green-colored packaging for products.
B) The process of recycling materials.
C) Making misleading claims about the environmental benefits of a product or practice.
D) Investing in renewable energy projects.
Rationale: Greenwashing is a deceptive marketing practice where a company spends more time
and money claiming to be "green" through advertising than on implementing business practices
that minimize environmental impact.
9. Which international standard provides guidelines for environmental management systems?
A) ISO 9001
B) ISO 14001
C) ISO 45001
D) ISO 27001
Rationale: ISO 14001 is the international standard that specifies requirements for an effective
Environmental Management System (EMS), helping organizations improve their environmental
performance.
10. A firm that adopts "lean" principles to reduce waste in its processes is directly
contributing to which pillar of sustainability?
A) Planet, by conserving resources.
B) People, by increasing employee morale.
C) Profit, but has no impact on Planet or People.
D) All three pillars equally.
Rationale: Lean manufacturing focuses on eliminating waste (or "Muda") in all forms—defects,
overproduction, waiting, etc. This directly benefits the Planet by reducing the consumption of
raw materials and energy, and often benefits Profit through cost savings and People through
improved workplace organization.
, 11. The "Social" pillar of sustainability is LEAST concerned with:
A) Workplace health and safety.
B) Community investment and development.
C) Ethical sourcing and labor practices.
D) Minimizing carbon emissions per unit produced.
Rationale: Minimizing carbon emissions is a primary concern of the Environmental ("Planet")
pillar. While a company's environmental actions can have social consequences, the direct
measurement of emissions is an ecological metric.
12. What does CSR stand for?
A) Corporate Supply-chain Responsibility
B) Customer Service and Relations
C) Corporate Social Responsibility
D) Centralized Stock Replenishment
Rationale: CSR (Corporate Social Responsibility) is a business model where companies integrate
social and environmental concerns in their business operations and interactions with their
stakeholders.
13. A company publicly commits to using 100% renewable energy by 2030. This is an example
of:
A) A carbon offset.
B) A sustainability mission or goal.
C) Greenwashing.
D) A circular economy strategy.
Rationale: This is a clear, time-bound sustainability goal focused on reducing the environmental
impact of the company's energy consumption.
14. The "tragedy of the commons" is a problem related to sustainability because it describes:
A) A lack of common safety standards in an industry.
B) The overuse of a shared resource by individuals acting in their own self-interest.
C) The high cost of common regulatory compliance.
D) The difficulty of finding common ground in international trade.
Rationale: This concept illustrates how shared resources (like clean air, oceans, or fisheries) can
be depleted when individuals or companies prioritize their own short-term gains over the long-
term health of the resource, leading to negative outcomes for all.
15. Which of the following is an example of an economic incentive for a company to become
more sustainable?
