Turning Waste into By-Product
نویسنده
چکیده
This paper studies how the conversion of a waste stream into a useful and saleable by-product affects a firm’s optimal operating strategy. We determine whether local implementation can be optimal, i.e., continuing business-as-usual to produce the original product and merely converting the collaterally generated waste stream into by-product, or whether global implementation – that re-optimizes the now joint production process – is required to maximize profit. Whereas local BPS implementation can be managed as if it were an alternate method of waste disposal, global implementation requires managerial attention at a strategic level. To determine which implementation mode is profit-maximizing, we derive optimality conditions for three possible operating regimes. These optimality conditions depend crucially on the waste disposal cost, which acts as a subsidy for the by-product that “consumes” the waste, and also on the virgin raw material cost, which acts as a subsidy for the original product that “feeds” the by-product process. These two costs create a symbiotic relationship between the original product and by-product. Since BPS turns waste into useful raw material, the firm may increase profit by generating more “waste”. Although BPS is generally lauded as a win-win for business and the environment, the firm may actually increase emissions if it acts to maximize profit because it increases production to leverage the competitive advantage it gains from its operational synergy.
منابع مشابه
RDF Production from Municipal Wastes (Case Study: Babol City)
Today, with the advancement of technology, turning waste into fuel has been considered as an inexhaustible source of energy production, especially in industries with high energy consumption. The most important of these industries are Cement and Iron Smelting factories. Babol, as one of the largest provinces in the north of the country, has been facing waste management crisis for several years w...
متن کاملEffects of Replacing Alfalfa Hay and Wheat Straw by Pistachio by-Product Silage and Date Waste on the Performance and Blood Parameters of Fattening Lambs
In this trial effects of feeding pistachio by-product silage with date waste (PBSD) on dry matter intake (DMI), live weight gain and blood parameters of lambs were studied. Ensiling of pistachio by-products (PBP) with date waste increased dry matter (DM) and metabolizable energy (ME), but decreased the percentages of crude protein (CP), total tannins and phenolic compounds (P
متن کاملOn the Infinite Product Representation of Solution and Dual Equation of Sturm-Liouville Equation with Turning Point of Order 4m+1
متن کامل
Infinite product representation of solution of indefinite SturmLiouville problem
In this paper, we investigate infinite product representation of the solution of a Sturm- Liouville equation with an indefinite weight function which has two zeros and/or singularities in a finite interval. First, by using of the asymptotic estimates provided in [W. Eberhard, G. Freiling, K. Wilcken-Stoeber, Indefinite eigenvalue problems with several singular points and turning points, Math. N...
متن کاملEnzymatic Hydrolysis of Olive Industry Solid Waste into Glucose, the Precursor of Bioethanol
Olive industry solid waste (OISW) is a by-product generated in the process of olive oil extraction. It is a lignocellulosic material consisting of cellulose, hemicelluloses, lignin and other extractives. In this work, a process for hydrolyzing the OISW into its monomers glucose, the precursor of bioethanol was developed. The hydrolysis process involves two stages: in the first stage, the O...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
برای دانلود متن کامل این مقاله و بیش از 32 میلیون مقاله دیگر ابتدا ثبت نام کنید
ثبت ناماگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید
ورودعنوان ژورنال:
- Manufacturing & Service Operations Management
دوره 14 شماره
صفحات -
تاریخ انتشار 2012