Supply Chain Risk and Sustainability Flashcards

The concept of 'circular economy' in supply chain sustainability means:

Answer: Designing products and processes to minimize waste by keeping materials in use as long as possible through reuse, repair, and recycling

A circular economy replaces the 'take-make-dispose' linear model with closed-loop systems that recover and regenerate materials at the end of product life.

What is 'carbon footprint' measurement useful for in supply chain management?

Answer: Identifying where greenhouse gas emissions occur across the supply chain to target reduction efforts

Measuring the supply chain carbon footprint reveals the highest-emission activities and suppliers, enabling prioritized reduction investments.

Which international standard provides guidelines for environmental management systems in supply chain operations?

Answer: ISO 14001

ISO 14001 is the global standard for environmental management systems, helping organizations systematically improve environmental performance.

In supply chain risk management, 'geographic concentration risk' is best mitigated by:

Answer: Diversifying suppliers and production across multiple geographic regions

Geographic diversification ensures that a natural disaster, political event, or regional disruption affecting one area doesn't halt the entire supply chain.

What does 'responsible sourcing' require in supply chain management?

Answer: Ensuring that purchased goods and materials are produced under ethical labor, environmental, and human rights standards

Responsible sourcing requires due diligence to verify that suppliers throughout the supply chain meet ethical standards for labor practices, environmental impact, and human rights.

A 'supply chain disruption' caused by a natural disaster is classified as which type of risk?

Answer: External, uncontrollable risk (force majeure)

Natural disasters are external, uncontrollable events (force majeure) that the supply chain must be designed to withstand or recover from.