Integrating Life Cycle Costing and Life Cycle Assessment for Managing Costs and Environmental Impacts in Supply Chains

Abstract

Supply chain management (SCM) has to be seen as one element in the broader contexts of life cycle management (LCM) and sustainable development. Both of these holistic approaches offer the opportunity to apply a systems-thinking approach to the activities of a firm. Within this philosophy a life cycle costing (LCC) concept for estimating the total costs associated with the production, use, and disposal of a product or service is introduced. On an application level this methodology is based on the environmental life cycle assessment (LCA) framework. The methodological background is explained and product design/development case studies demonstrating the advantages and practicality of the proposed LCC method are elaborated.

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