Abstract

Industrial applications of supply chain cost management, along with life cycle costing of goods and services, are increasing. Several industrial sectors, in particular the automotive, electronics, and primary materials, have engaged in programs to coordinate upstream and downstream activities to reduce environmental burdens. At the same time, there is an increasing need to pass on information on product, material, and energy flows along the supply chain, as well as to provide data on the use and end-of-life phases of goods and services. Therefore, methods to analyze, assess, and manage these flows, from an economic as well as an environmental perspective, are of essential importance, particularly in established large-scale industries where suppliers are increasingly challenged to provide comprehensive cost and environmental information. in this context, a life cycle costing analysis (LCC) conducted aspart of life cycle management activities, can provide important opportunities. Therefore, this paper focuses on a life cycle assessment (LCA)-based LCC method, which utilizes an LCA model as a basis for cost estimations in product development and planning. A case study on life cycle costing of wastewater treatment illustrates the practical use and benefits of the method.

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