Sunday, January 29, 2017

MBA Operations Management - Test Bank - Chapter 05s

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.
Answer:  FALSE
Diff: 2
Key Term:  Corporate social responsibility (CSR)
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.1 Describe corporate social responsibility
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability

2) Internet-based technologies today allow consumers, communities, public interest groups, and regulators to be well informed about an organization's performance.
Answer:  TRUE
Diff: 1
AACSB:  Information technology
Objective:  LO S5.1 Describe corporate social responsibility
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability

3) What does CSR stand for?
  1. A) consumer sustainability requirements
  2. B) critical sustainability ratio
  3. C) corporate social responsibility
  4. D) corporate sustainability record
  5. E) corporate society ratio

Answer:  C
Diff: 1
Key Term:  Corporate social responsibility (CSR)
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.1 Describe corporate social responsibility
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability

4) Corporate social responsibility involves managerial decision making that considers what three impacts?
  1. A) environmental, legal, and financial
  2. B) environmental, legal, and societal
  3. C) educational, environmental, and societal
  4. D) societal, legal, and financial
  5. E) environmental, societal, and financial
Answer:  E
Diff: 2
Key Term:  Corporate social responsibility (CSR)
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.1 Describe corporate social responsibility
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability

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?
  1. A) the commons
  2. B) a systems view
  3. C) the triple bottom line
  4. D) shared value
  5. E) carbon footprint
Answer:  B
Diff: 2
Key Term:  Shared value
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.1 Describe corporate social responsibility
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability

6) Companies that practice ________ introduce policies that consider environmental, societal, and financial impacts in their decision making.
Answer:             corporate social responsibility (or CSR)
Diff: 2
Key Term:  Corporate social responsibility (CSR)
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.1 Describe corporate social responsibility
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability

7) ________ technologies today allow consumers, communities, public interest groups, and regulators to be well informed about an organization's performance.
Answer:  Internet-based
Diff: 3
AACSB:  Information technology
Objective:  LO S5.1 Describe corporate social responsibility
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability

8) Corporate social responsibility involves managerial decision making that considers what three impacts?
Answer:  environmental, societal, and financial
Diff: 2
Key Term:  Corporate social responsibility (CSR)
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.1 Describe corporate social responsibility
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability
9) Many firms approach corporate social responsibility through the concept of "shared value." What is meant by "shared value"?
Answer:  Developing policies and practices that enhance the competitiveness of the organization while advancing the economic and social conditions in the communities in which it operates.
Diff: 2
Key Term:  Shared value
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.1 Describe corporate social responsibility
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability

10) Three concepts that have proven helpful as managers consider sustainability are: ________, ________, ________.
Answer:  1) a systems view; 2) understanding the "commons"; 3) the triple bottom line
Diff: 2
Key Term:  Sustainability
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.1 Describe corporate social responsibility
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability

11) Dow Chemical finding both profit and social benefits in canola and sunflower seeds is an example of the concept of ________.
Answer:  Shared value
Diff: 2
Key Term:  Shared value
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.1 Describe corporate social responsibility
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability

Section 2   Sustainability

1) Managerial decision making that considers environmental, societal, and financial impacts is known as sustainability.
Answer:  FALSE
Diff: 2
Key Term:  Sustainability
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.2 Describe sustainability
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability

2) Sustainability is often associated with corporate social responsibility.
Answer:  TRUE
Diff: 1
Key Term:  Sustainability
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.2 Describe sustainability
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability
3) Those resources held in the common are often misallocated.
Answer:  TRUE
Diff: 1
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.2 Describe sustainability
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability

4) Firms that do not consider the impact of their decisions on all of their stakeholders see reduced sales and profits.
Answer:  TRUE
Diff: 1
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.2 Describe sustainability
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability

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.
Answer:  FALSE
Diff: 2
Key Term:  Carbon footprint
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.2 Describe sustainability
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability

6) Economic sustainability means appropriately allocating scarce resources to make a profit.
Answer:  TRUE
Diff: 2
Key Term:  Economic sustainability
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.2 Describe sustainability
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability

7) Social and environmental sustainability do not exist without economic sustainability.
Answer:  TRUE
Diff: 1
Key Term:  Economic sustainability
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.2 Describe sustainability
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability
8) What refers to meeting the needs of the present without compromising the ability of future generations to meet their needs?
  1. A) corporate social responsibility
  2. B) economic sustainability
  3. C) carbon footprint
  4. D) sustainability
  5. E) closed-loop supply chains
Answer:  D
Diff: 2
Key Term:  Sustainability
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.2 Describe sustainability
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability

9) What refers to looking at a product's life from design to disposal, including all the resources required?
  1. A) the commons
  2. B) a systems view
  3. C) the triple bottom line
  4. D) shared value
  5. E) carbon footprint
Answer:  B
Diff: 2
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.2 Describe sustainability
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability

10) Resources held by the public are also said to be held in what?
  1. A) escrow
  2. B) the system
  3. C) contempt
  4. D) perpetuity
  5. E) the common
Answer:  E
Diff: 2
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.2 Describe sustainability
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability
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:
  1. A) price, promotion, and product.
  2. B) people, places, and products.
  3. C) people, planet, and profit.
  4. D) price, promotion, and profit.
  5. E) people, pollution, and profit.
Answer:  C
Diff: 2
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.2 Describe sustainability
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability

12) Companies can improve the triple bottom line with sustainability by minimizing what four things?
  1. A) raw material, energy, water, and waste
  2. B) raw material, transport, manufacture, and disposal
  3. C) people, planet, profit, and pollution
  4. D) pollution, carbon footprint, profit, and people
  5. E) lawsuits, advertisements, coupons, and layoffs
Answer:  A
Diff: 1
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.2 Describe sustainability
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability


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:
  1. A) radioactive decay.
  2. B) nitrogen footprint.
  3. C) ozone factor.
  4. D) pollution index.
  5. E) carbon footprint.
Answer:  E
Diff: 2
Key Term:  Carbon footprint
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.2 Describe sustainability
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability
14) The carbon footprint is defined as a measure of total greenhouse gas emissions caused directly or indirectly by what four things?
  1. A) a factory, an office building, a warehouse, or a truck
  2. B) an organization, a product, an event, or a person
  3. C) an organization, a product, an animal, or a person
  4. D) an organization, a government, a product, or a person
  5. E) a product, an event, a person, or an animal
Answer:  B
Diff: 2
Key Term:  Carbon footprint
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.2 Describe sustainability
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability

15) Which of the following refers to how companies remain in business?
  1. A) corporate social responsibility
  2. B) economic sustainability
  3. C) carbon footprint
  4. D) sustainability
  5. E) closed-loop supply chains
Answer:  B
Diff: 2
Key Term:  Economic sustainability
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.2 Describe sustainability
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability

16) The term ________ refers to meeting the needs of the present without compromising the ability of future generations to meet their needs.
Answer:  sustainability
Diff: 2
Key Term:  Sustainability
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.2 Describe sustainability
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability


17) Inputs to a production system that do not have market prices are those held in the ________.
Answer:  common
Diff: 2
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.2 Describe sustainability
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability

18) Inputs to a production system that are held in the common do not have market ________.
Answer:  prices
Diff: 2
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.2 Describe sustainability
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability
19) The triple bottom line includes the three Ps of ________.
Answer:  people, planet, and profit
Diff: 2
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.2 Describe sustainability
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability

20) The carbon footprint measures total ________ caused directly or indirectly by an organization, a product, an event, or a person.
Answer:  greenhouse gas emissions
Diff: 2
Key Term:  Carbon footprint
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.2 Describe sustainability
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability

21) To support economic sustainability, firms may supplement standard financial accounting and reporting with some version of ________.
Answer:  social accounting
Diff: 2
Key Term:  Economic sustainability
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.2 Describe sustainability
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability

22) True sustainability involves thinking not only about environmental resources but also about what additional aspects?
Answer:  employees, customers, community, and the company's reputation
Diff: 3
Key Term:  Sustainability
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.2 Describe sustainability
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability


23) Identify three ways in which society is trying to address the misallocation of resources held in the common.
Answer:  (1) moving some of the common to private property; (2) allocation of rights; (3) regulation
Diff: 3
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.2 Describe sustainability
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability
24) Provide at least two examples of misallocation of resources held in the common.
Answer:  Answers will vary. The text mentions: (1) depletion of fish in international waters, and (2) polluted air and waterways.
Diff: 2
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.2 Describe sustainability
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability

25) Explain how to improve the triple bottom line with sustainability. (Hint: answer can be based on Figure S5.1.)
Answer:  Throughout the supply chain, firms should strive to minimize raw material, energy, water, and waste in order to maximize the planet, people, and profit.
Diff: 3
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.2 Describe sustainability
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability

26) Sustainability suggests that supplier selection and performance criteria should evaluate what types of issues with respect to the employees of the suppliers?
Answer:  Examples include: safety in the work environment, whether living wages are paid, if child labor is used, and whether work hours are excessive.
Diff: 2
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.2 Describe sustainability
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability

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.
Answer:  (1) Improving livelihoods through the creation of productive, healthy, and safe workplaces and promoting quality of life. (2) Building strong communities through access to affordable, high-quality services such as education and job training that support workers and their families. (3) Preventing exposure to substances that are considered harmful or toxic to human health. (4) Promoting health and wellness by increasing access to nutritious products, encouraging healthy lifestyles, and promoting access to health care.
Diff: 3
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.2 Describe sustainability
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability

28) Describe some ways in which operations managers should address employee working conditions.
Answer:  Answers will vary. Examples include: training and safety orientations, before-shift exercises, ear plugs, safety goggles, rest breaks, and proper disposal of material and chemical waste.
Diff: 2
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.2 Describe sustainability
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability

29) Social accounting can measure what types of things?
Answer:  Answers could include: brand equity, management talent, human capital development and benefits, research and development, productivity, philanthropy, and taxes paid.
Diff: 2
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.2 Describe sustainability
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability

Section 3   Design and Production for Sustainability

1) The operations manager's greatest opportunity to make substantial contributions to the company's environmental objectives occurs during product life cycle assessment.
Answer:  TRUE
Diff: 2
Key Term:  Life cycle assessment
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.3 Explain the 3Rs for sustainability
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability

2) Life cycle assessment determines which stage of the product life cycle that the product currently is in.
Answer:  FALSE
Diff: 2
Key Term:  Life cycle assessment
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.3 Explain the 3Rs for sustainability
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability

3) Reuse is one of the 3 Rs for sustainability.
Answer:  TRUE
Diff: 2
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.3 Explain the 3Rs for sustainability
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability
4) One environmentally friendly approach to product design is to use lighter components.
Answer:  TRUE
Diff: 2
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.3 Explain the 3Rs for sustainability
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability


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.
Answer:  TRUE
Diff: 2
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.4 Calculate design for disassembly
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability

6) UPS plans its truck routes with the fewest possible right turns.
Answer:  FALSE
Diff: 3
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.3 Explain the 3Rs for sustainability
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability

7) What refers to analysis of environmental impacts of products from the design stage through end-of-life?
  1. A) ISO 14000
  2. B) life cycle assessment
  3. C) carbon footprint
  4. D) economic sustainability
  5. E) closed-loop supply chain analysis
Answer:  B
Diff: 2
Key Term:  Life cycle assessment
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.3 Explain the 3Rs for sustainability
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability

8) What are the 3 Rs for sustainability?
  1. A) reduce, reuse, and reclaim
  2. B) reduce, reproduce, and recycle
  3. C) reproduce, reuse, and recycle
  4. D) reduce, reuse, and recycle
  5. E) reduce, reclaim, and recycle
Answer:  D
Diff: 2
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.3 Explain the 3Rs for sustainability
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability

9) What is the most critical phase in product life cycle assessment?
  1. A) product design
  2. B) purchasing
  3. C) production
  4. D) shipping
  5. E) disposal
Answer:  A
Diff: 2
Key Term:  Life cycle assessment
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.3 Explain the 3Rs for sustainability
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability

10) What is sometimes referred to as the fourth "R" of sustainability?
  1. A) reclaim
  2. B) recover
  3. C) renew
  4. D) improved reputation
  5. E) reproduce
Answer:  D
Diff: 2
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.3 Explain the 3Rs for sustainability
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability

11) What percentage of the 2012 Mercedes S-class is recyclable?
  1. A) 25%
  2. B) 50%
  3. C) 75%
  4. D) 95%
  5. E) 100%
Answer:  D
Diff: 3
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.3 Explain the 3Rs for sustainability
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability
12) What type of supply chains consider forward and reverse product flows over the entire life cycle?
  1. A) two-pronged
  2. B) life cycle
  3. C) closed-loop
  4. D) socially responsible
  5. E) end-to-end
Answer:  C
Diff: 2
Key Term:  Closed-loop supply chains
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.3 Explain the 3Rs for sustainability
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability

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?
  1. A) $27.00
  2. B) $8.00
  3. C) $9.00
  4. D) $1.00
  5. E) $20.00
Answer:  C
Diff: 2
AACSB:  Analytical thinking
Objective:  LO S5.4 Calculate design for disassembly
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability
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

  1. A) Design 1
  2. B) Design 2
  3. C) Design 3
  4. D) Design 4
  5. E) Design 5
Answer:  B
Diff: 2
AACSB:  Analytical thinking
Objective:  LO S5.4 Calculate design for disassembly
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability

15) Products are more "environmentally friendly" when they are made:
  1. A) using cheaper materials.
  2. B) using less energy.
  3. C) according to OSHA standards.
  4. D) where environmental regulations are lax.
  5. E) more difficult to disassemble.
Answer:  B
Diff: 1
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.3 Explain the 3Rs for sustainability
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability

16) Analysis of environmental impacts of products from the design stage through end-of-life is known as ________.
Answer:  life cycle assessment
Diff: 2
Key Term:  Life cycle assessment
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.3 Explain the 3Rs for sustainability
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability
17) The 3 Rs for sustainability are ________.
Answer:  reduce, reuse, and recycle
Diff: 2
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.3 Explain the 3Rs for sustainability
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability

18) ________ materials translate into better fuel economy, fewer carbon emissions, and reduced operating cost.
Answer:  Lighter (or Alternative)
Diff: 2
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.3 Explain the 3Rs for sustainability
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability

19) Boeing's use of epoxy composites and titanium graphite laminate represent the environmentally friendly concept of ________.
Answer:  using lighter materials
Diff: 2
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.3 Explain the 3Rs for sustainability
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability

20) Opportunities to reduce environmental impact during production typically revolve around the three themes of ________.
Answer:  energy, water, and environmental contamination
Diff: 3
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.3 Explain the 3Rs for sustainability
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability

21) ________ supply chains consider forward and reverse product flows over the entire life cycle.
Answer:  Closed-loop
Diff: 2
Key Term:  Closed-loop supply chains
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.3 Explain the 3Rs for sustainability
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability

22) Why is product design the most critical phase in product life cycle assessment?
Answer:  Answers will vary but should look something like the following from the text: "The decisions that are made during this phase greatly affect materials, quality, cost, processes, related packaging and logistics, and ultimately how the product will be processed when discarded."
Diff: 2
Key Term:  Life cycle assessment
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.3 Explain the 3Rs for sustainability
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability

23) What is the formula for revenue retrieval of a product that has reached the end of its life?
Answer:  Revenue retrieval = Total resale revenue + Total recycling revenue - Total processing cost - Total disposal cost
Diff: 2
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.4 Calculate design for disassembly
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability

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?
Answer:  Revenue retrieval = $22.00 + $8.00 - $13.00 - $9.00 = $8.00
Diff: 2
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.4 Calculate design for disassembly
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability

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

Answer:
Revenue retrieval for Design 1 = $100 + $10 - $40 - $5 = $65
Revenue retrieval for Design 2 = $80 + $50 - $20 - $20 = $90
Revenue retrieval for Design 3 = $200 + $25 - $130 - $20 = $75
Thus, with the highest revenue retrieval opportunity, Design 2 appears best.
Diff: 2
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.4 Calculate design for disassembly
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability

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

Answer:
Design 1:
resale revenue per unit = $9.50, and recycling revenue per unit = $16.89, processing cost per unit = $7.44, disposal cost per unit = $10.19
Revenue retrieval for Firm 1 = $9.50 + $16.89 - $7.44 - $10.19 = $8.76

Design 2:
resale revenue per unit = $13.28, and recycling revenue per unit = $17.94, processing cost per unit = $10.89, disposal cost per unit = $10.62
Revenue retrieval for Firm 1 = $13.28 + $17.94 - $10.89 - $10.62 = $9.71

Therefore, with the higher revenue retrieval opportunity, Design 2 appears best.
Diff: 3
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.4 Calculate design for disassembly
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability

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

Answer:  $34,000 + 7[(20,000/35)($4.10) + (20,000)($0.26)] = $34,000 + 7($2,342.86 + $5,200) = $86,800.02
Diff: 2
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.4 Calculate design for disassembly
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability

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.
Answer:  TRUE
Diff: 1
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.5 Explain the impact of sustainable regulations on operations
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability

2) ISO 9000 is a series of environmental management standards that contain five core elements.
Answer:  FALSE
Diff: 2
Key Term:  ISO 14000
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.5 Explain the impact of sustainable regulations on operations
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability

3) The UNFCCC works on the "cap-and-trade" principle.
Answer:  FALSE
Diff: 2
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.5 Explain the impact of sustainable regulations on operations
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability
4) Within environmental regulation, the "cap-and-trade" principle essentially allows companies to buy and sell the right to pollute.
Answer:  TRUE
Diff: 2
AACSB:  Reflective thinking
Objective:  LO S5.5 Explain the impact of sustainable regulations on operations
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability


5) What does ISO stand for?
  1. A) Industry Standards Organization
  2. B) International Safety Organization
  3. C) Industrial Safety Organization
  4. D) International Standards for Oxygen
  5. E) International Organization for Standardization
Answer:  E
Diff: 2
Key Term:  ISO 14000
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.5 Explain the impact of sustainable regulations on operations
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability

6) What does UNFCCC stand for?
  1. A) United National Federation Council on Climate Change
  2. B) UN Federation for Climate Change Cooperation
  3. C) Uniform National Framework Climate Change Code
  4. D) UN Framework Convention on Climate Change
  5. E) UN Foundation for the Consequences of Climate Change
Answer:  D
Diff: 3
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.5 Explain the impact of sustainable regulations on operations
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability

7) What percentage of the manufacturing process from Subaru's Lafayette, Indiana, plant goes to the landfill?
  1. A) 0%
  2. B) 2%
  3. C) 5%
  4. D) 12.5%
  5. E) 15%
Answer:  A
Diff: 3
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.5 Explain the impact of sustainable regulations on operations
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability
8) The European Union Emissions Trading System works on what principle?
  1. A) Thatcher's Theory of the Commons
  2. B) pollute-and-pay
  3. C) socialism
  4. D) cap-and-trade
  5. E) tax the richer companies more to pay for pollution control
Answer:  D
Diff: 2
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.5 Explain the impact of sustainable regulations on operations
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability

9) What allows companies in Europe to buy and sell allowances for the right to pollute?
  1. A) UNFCCC
  2. B) ISO 9000
  3. C) EUETS
  4. D) ISO 14000
  5. E) EPA
Answer:  C
Diff: 2
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.5 Explain the impact of sustainable regulations on operations
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability

10) Within environmental regulation, the "cap-and-trade" principle produces a market that allows companies to purchase and sell what?
  1. A) hats that promote environmental awareness
  2. B) shares of stock in renewable energy sources
  3. C) emission allowances
  4. D) space in landfills
  5. E) carbon reduction sweepers
Answer:  C
Diff: 2
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.5 Explain the impact of sustainable regulations on operations
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability

11) Which of the following is true about ISO 14000 certification?
  1. A) It can reduce exposure to liability.
  2. B) It deals with environmental management.
  3. C) It offers a good systematic approach to pollution prevention.
  4. D) One of its core elements is life cycle assessment.
  5. E) All of the above are true.
Answer:  E
Diff: 2
Key Term:  ISO 14000
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.5 Explain the impact of sustainable regulations on operations
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability
12) Design for ________ encourages designers to create products that can be taken apart and whose components can be recovered, minimizing impact on the environment.
Answer:  disassembly
Diff: 2
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.5 Explain the impact of sustainable regulations on operations
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability


13) The European Union Emissions Trading System works on the ________ principle.
Answer:  cap-and-trade
Diff: 2
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.5 Explain the impact of sustainable regulations on operations
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability

14) A series of environmental management standards established by the International Organization for Standardization is called ________.
Answer:  ISO 14000
Diff: 2
Key Term:  ISO 14000
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.5 Explain the impact of sustainable regulations on operations
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability

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.
Answer:  (1) UN Framework Convention on Climate Change (UNFCCC), and (2) International Organization for Standardization (ISO)
Diff: 3
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.5 Explain the impact of sustainable regulations on operations
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability

16) Describe the European Union Emissions Trading System to combat climate change.
Answer:  The system works on the "cap-and-trade" principle. This means that there is a cap, or limit, on the total amount of certain greenhouse gases that can be emitted by factories, power plants, and airlines in EU airspace. Within this cap, companies receive emission allowances, which they can sell to, or buy from, one another as needed.
Diff: 3
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.5 Explain the impact of sustainable regulations on operations
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability
17) Identify the five core elements of ISO 14000.
Answer:  The five core elements of ISO 14000 are environmental management, auditing, performance evaluation, labeling, and life cycle assessment.
Diff: 3
Key Term:  ISO 14000
AACSB:  Ethical understanding and reasoning
Objective:  LO S5.5 Explain the impact of sustainable regulations on operations
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability

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OPERATIONS MANAGEMENT - 2017 - COLLECTION
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EBOOKS
Operations Management, 2015, 12th Edition, William J. Stevenson - Free Download Link
Operations Management, Sustainability and Supply Chain Management, 11th Edition, 2014, Jay Heizer, Barry Render - Free Download Link
Operations Management: Sustainability and Supply Chain Management, 12th Edition, Jay Heizer, Barry Render, Chuck Munson, 2017
Principles of Operations Management: Sustainability and Supply Chain Management, 10th Edition, 2017
Operations Research: An Introduction, 10th Edition, Hamdy A. Taha, 2017
Introduction to Operations and Supply Chain Management, 4th Edition, Cecil B. Bozarth, Robert B. Handfield, 2016 
Operations Management: Processes and Supply Chains, 11th Edition, Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman, 2016
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2. Slides - 11th Edition - Free Downloads
3. Slides - 12nd Edition - Free Downloads
4. Full List of Videos Case Studies - Link
5. All articles about Operations Management
http://top20mba.com/mba-cases/94-mba-operation-management
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6. QUIZ, Multiple choice questions and answers
7. CASE STUDY GUIDES
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FREE DOWNLOADS:
1. Operations Management: Sustainability and SCM, 12th Edition, Jay Heizer, 2017
2. Operations Management, Sustainability and SCM, 11th Ed, 2014, Jay Heizer
3. Principles of Operations Management: Sustainability and SCM, 10th Ed, Jay Heizer, 2017
Free Download Link
4. Operations Management, 2017, 12th Edition, William J. Stevenson
Free Download Link
5. Operations Management: Processes and Supply Chains, 11th Edition, Lee J. Krajewski, 2016
6. Operations Research: An Introduction, 10th Edition, Hamdy A. Taha, 2017
7. Introduction to Operations and SCM, 4th Edition, Cecil B. Bozarth, Robert B. Handfield, 2016 
8. Hotel Operations Management, 3rd Edition, David K. Hayes, 2017Ebooks – Free Download Links
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