Global Supply Chain Management Testbank

Supply Chain Management, 6e, Global Edition (Chopra/Meindl)
Chapter 17 Sustainability and the Supply Chain

17.1 True/False Questions

1) A focus on sustainability allows a supply chain to better serve more environmentally
conscious customers while often improving supply chain performance.
Answer: TRUE
Diff: 1
Topic: 17.1 The Role of Sustainability in a Supply Chain
AACSB: Ethical understanding and reasoning
Objective: LO 17.1: Understand the importance of sustainability in a supply chain.

2) Walmart started its focus on sustainability as a defensive move given the beating it was taking
from environmental activists.
Answer: TRUE
Diff: 2
Topic: 17.1 The Role of Sustainability in a Supply Chain
AACSB: Ethical understanding and reasoning
Objective: LO 17.1: Understand the importance of sustainability in a supply chain.

3) Customers have usually backed up words about the importance of sustainability with a
willingness to pay more for sustainable products.
Answer: FALSE
Diff: 2
Topic: 17.1 The Role of Sustainability in a Supply Chain
AACSB: Ethical understanding and reasoning
Objective: LO 17.1: Understand the importance of sustainability in a supply chain.

4) 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.
Answer: TRUE
Diff: 1
Topic: 17.2 The Tragedy of the Commons
AACSB: Ethical understanding and reasoning
Objective: LO 17.2: Discuss the challenge to sustainability posed by the tragedy of the
commons.




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,5) 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.
Answer: TRUE
Diff: 1
Topic: 17.2 The Tragedy of the Commons
AACSB: Analytical thinking
Objective: LO 17.2: Discuss the challenge to sustainability posed by the tragedy of the
commons.

6) In reality, there are no actions in a supply chain that improve both sustainability and supply
chain surplus.
Answer: FALSE
Diff: 1
Topic: 17.3 Key Pillars of Sustainability
AACSB: Analytical thinking
Objective: LO 17.3: Describe key dimensions of sustainability for a supply chain.

7) An example of a relative measure of emission output is pounds of CO2 per gallon of diesel
fuel.
Answer: FALSE
Diff: 2
Topic: 17.3 Key Pillars of Sustainability
AACSB: Analytical thinking
Objective: LO 17.3: Describe key dimensions of sustainability for a supply chain.

8) The social pillar measures a firm's ability to address issues that are important for its
workforce, customers, and society.
Answer: TRUE
Diff: 2
Topic: 17.3 Key Pillars of Sustainability
AACSB: Analytical thinking
Objective: LO 17.3: Describe key dimensions of sustainability for a supply chain.

9) A firm's new sustainability improvement initiative is best begun by focusing on resource
reduction activities.
Answer: TRUE
Diff: 2
Topic: 17.3 Key Pillars of Sustainability
AACSB: Analytical thinking
Objective: LO 17.3: Describe key dimensions of sustainability for a supply chain.




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, 10) For most firms, the extent of direct emissions is typically only a small fraction of the extent
of indirect emissions in the supply chain.
Answer: TRUE
Diff: 3
Topic: 17.3 Key Pillars of Sustainability
AACSB: Analytical thinking
Objective: LO 17.3: Describe key dimensions of sustainability for a supply chain.

11) Facilities often offer the best opportunity to simultaneously improve the environmental and
financial performance through innovation.
Answer: TRUE
Diff: 1
Topic: 17.4 Sustainability and Supply Chain Drivers
AACSB: Analytical thinking
Objective: LO 17.3: Describe key dimensions of sustainability for a supply chain.

12) Most supply chain design innovations that lower transportation costs paradoxically tend to
increase fuel consumption and emissions.
Answer: FALSE
Diff: 1
Topic: 17.4 Sustainability and Supply Chain Drivers
AACSB: Analytical thinking
Objective: LO 17.3: Describe key dimensions of sustainability for a supply chain.

13) There is greater environmental impact in the extended supply chain than there is within the
main plant for most manufacturers.
Answer: TRUE
Diff: 2
Topic: 17.4 Sustainability and Supply Chain Drivers
AACSB: Analytical thinking
Objective: LO 17.3: Describe key dimensions of sustainability for a supply chain.

14) Simple awareness of what your own electricity consumption is usually reduces a consumer's
electricity use by between 10% and 15%.
Answer: TRUE
Diff: 2
Topic: 17.4 Sustainability and Supply Chain Drivers
AACSB: Analytical thinking
Objective: LO 17.4: Understand the role of incentives for successful sustainability efforts.

15) Surveys in sustainable farming have revealed that the typical consumer is willing to pay 25%
more for sustainable fare.
Answer: FALSE
Diff: 2
Topic: 17.4 Sustainability and Supply Chain Drivers
AACSB: Analytical thinking
Objective: LO 17.4: Understand the role of incentives for successful sustainability efforts.
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