By-Product Synergy: Productively Using Waste In Joint Production Operations

As raw material resources become more scarce and waste disposal becomes more costly, firms are increasingly focused on the effective use of raw materials, many of which are natural resources. By-product synergy is an operational model that leverages economies of scope to more effectively use natural resources, while simultaneously reducing waste. Processes are joined by feeding the waste stream of one process as input into another process. The operational, economic, and environmental implications of this joint production method are explored in this chapter.