Which principle aims to minimize environmental impact and ensure ethical sourcing in supply chain management?

Which principle aims to minimize environmental impact and ensure ethical sourcing in supply chain management?

• A. Sustainable SCM.
• B. Just-in-Time.
• C. Bullwhip effect.
• D. Vertical coordination.

Answer: (A)

Sustainable supply chain management focuses on reducing environmental impact and ensuring ethical sourcing across the entire chain. It means designing and operating procurement, production, and distribution so resources are used efficiently, emissions and waste are minimized, and suppliers uphold fair labor practices and responsible practices. This approach includes choosing responsible suppliers, applying life-cycle thinking, and aligning with standards and codes of conduct that promote environmental stewardship and social responsibility. Other options don’t center on these goals. Just-in-Time is about reducing inventory and timing materials to match production, not specifically about sustainability or ethics. The bullwhip effect describes how demand variability amplifies up the supply chain, which is an efficiency/forecasting issue rather than a sustainability principle. Vertical coordination deals with governance and integration of the supply chain, which can improve efficiency but doesn’t inherently address environmental impact or ethical sourcing.

Sustainable supply chain management focuses on reducing environmental impact and ensuring ethical sourcing across the entire chain. It means designing and operating procurement, production, and distribution so resources are used efficiently, emissions and waste are minimized, and suppliers uphold fair labor practices and responsible practices. This approach includes choosing responsible suppliers, applying life-cycle thinking, and aligning with standards and codes of conduct that promote environmental stewardship and social responsibility.

Other options don’t center on these goals. Just-in-Time is about reducing inventory and timing materials to match production, not specifically about sustainability or ethics. The bullwhip effect describes how demand variability amplifies up the supply chain, which is an efficiency/forecasting issue rather than a sustainability principle. Vertical coordination deals with governance and integration of the supply chain, which can improve efficiency but doesn’t inherently address environmental impact or ethical sourcing.