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CHAPTER 4: Sustainability in the Supply Chain (Life cycle assessment…
CHAPTER 4: Sustainability in
the Supply Chain
Sustainability
Meeting the needs of the present without compromising the ability of future generation to meet their needs
Systems View
The product or service itself is a small part of much larger social, economic, and environmental systems
Understanding systems allows moreinformed judgments regarding sustainability
Looking at a product’s life from design to disposal, including all the resources required
Commons
Many inputs to a production system
held by the public
Common resources often misallocated
Possible solutions include
Allocation of rights
Allocation of yield
Moving some of the common to private
property
Triple Bottom Line
Life cycle assessment
valuates the environmental impact of a product, from raw material and energy inputs all the way to the disposal of the product at its end-of-life
The goal is to make decisions that helpr educe the environmental impact of a product throughout its entire life
Product Design
Design decisions affect materials, quality,cost, processes, related packaging and logistics, and how the product will be processed when discarded.
Design for Disassembly
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LO S5.5
Incorporate systems view to lower environmental impact
Alternative materials
Production Process
Reduce the amount of resources in the
production process
Environmental contamination
Energy
Water
Reduce cost and environmental
concerns
Logistics
Reduce costs by achieving efficient
route and delivery networks
Keeping trucks busy
Getting shipments to customers
promptly
Buying inexpensive
fuel
Evaluate equipment alternatives
Management analytics can help
Life cycle ownership costs
Life Cycle Ownership Costs
Page 239 **Example S2
Corporate Social
Responsibility (CSR)
How products and services affect people
and the environment
Doing what’s right can be beneficial to all
stakeholders
Stakeholders have strong opinions about
environmental, social, and ethical issues
The 3Rs— reduce, reuse, and recycle