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kg of surfactants. Which of the two approaches would you now recommend? Does the life-cycle cost approach have limitations? Explain. 3. Which parts of the life cycle described by the inventory analysis are controlled by the supplier? By the producer? What part of the inventory analysis is missing? 16-10 LIFE-CYCLE ASSESSMENT: PACKAGING AND PRODUCT USE, IMPACT ANALYSIS LO3 Burnham Munchies, Inc., is an international producer of potato chips. At the end of 2006, Mandy Pohlson, president of Burnham, appointed a task force to focus on the packaging and product use segments of its product's life cycle. Since customers con- sumed the contents of the package (if not consumed, the contents are biodegradable), the main concem was on the ability to conserve, recycle, and dispose of packaging ma- terials. A new packaging proposal was being considered. A partial inventory analysis of the current packaging and the new packaging is as follows: Current New 2 No Delivery boxes: Recycle potential Low High Times used before disposal 1 Paper bags: Average package weight (ounces) 1.5 Ink with heavy metals Yes Ultimate disposal: Safe for incineration No Upon seeing the inventory analysis, Mandy was pleased to see the apparent envi- ronmental benefits of the new packaging. However, she wanted a more detailed analy- sis of the impact of the new packaging. In response to this request, environmental engineering and cost accounting provided the following estimates: 726 Part 3 Advanced Costing and Control Annual packages produced and sold 200,000,000 Current demand for delivery boxes 300,000,000 pounds Recyele forecast 90% of delivery boxes used Cost per ounce (package) S0.02 Cost per pound (delivery boxes) S0.60 The company's environmental engineers also indicated that in Europe and Japan about 75 percent of the packaging will participate in waste-to-energy combustion programs for the generation of steam or electricity. In the United States, only about 25 percent of the packaging will participate in such programs. Environmental engineering also noted that saving 300 pounds of paperboard is equivalent to saving one tree Required: 1. Calculate the total pounds of delivery boxes saved because of the new packaging How much does this save in dollars? How many trees are saved because of recy- cling and reduction in demand for boxes? Because of recycling, how many pounds of cardboard are diverted from landfills? 2. Calculate the total pounds of materials saved by reducing packaging (bag) weight. What are the dollar savings? Now, assume that a design engineer has in- dicated that by reducing the packaging seal from the industry standard one-half inch to one-fourth inch, an additional 5 percent reduction in bag packaging can be achieved. How many po of materials are saved? Dollars saved? 3. Explain why the ultimate disposal qualities of packaging are important environ- mental considerations. 4. Why emphasize saving a material that comes from a renewable resource (trees)? 16-11 ENVIRONMENTAL PERFORMANCE kg of surfactants. Which of the two approaches would you now recommend? Does the life-cycle cost approach have limitations? Explain. 3. Which parts of the life cycle described by the inventory analysis are controlled by the supplier? By the producer? What part of the inventory analysis is missing? 16-10 LIFE-CYCLE ASSESSMENT: PACKAGING AND PRODUCT USE, IMPACT ANALYSIS LO3 Burnham Munchies, Inc., is an international producer of potato chips. At the end of 2006, Mandy Pohlson, president of Burnham, appointed a task force to focus on the packaging and product use segments of its product's life cycle. Since customers con- sumed the contents of the package (if not consumed, the contents are biodegradable), the main concem was on the ability to conserve, recycle, and dispose of packaging ma- terials. A new packaging proposal was being considered. A partial inventory analysis of the current packaging and the new packaging is as follows: Current New 2 No Delivery boxes: Recycle potential Low High Times used before disposal 1 Paper bags: Average package weight (ounces) 1.5 Ink with heavy metals Yes Ultimate disposal: Safe for incineration No Upon seeing the inventory analysis, Mandy was pleased to see the apparent envi- ronmental benefits of the new packaging. However, she wanted a more detailed analy- sis of the impact of the new packaging. In response to this request, environmental engineering and cost accounting provided the following estimates: 726 Part 3 Advanced Costing and Control Annual packages produced and sold 200,000,000 Current demand for delivery boxes 300,000,000 pounds Recyele forecast 90% of delivery boxes used Cost per ounce (package) S0.02 Cost per pound (delivery boxes) S0.60 The company's environmental engineers also indicated that in Europe and Japan about 75 percent of the packaging will participate in waste-to-energy combustion programs for the generation of steam or electricity. In the United States, only about 25 percent of the packaging will participate in such programs. Environmental engineering also noted that saving 300 pounds of paperboard is equivalent to saving one tree Required: 1. Calculate the total pounds of delivery boxes saved because of the new packaging How much does this save in dollars? How many trees are saved because of recy- cling and reduction in demand for boxes? Because of recycling, how many pounds of cardboard are diverted from landfills? 2. Calculate the total pounds of materials saved by reducing packaging (bag) weight. What are the dollar savings? Now, assume that a design engineer has in- dicated that by reducing the packaging seal from the industry standard one-half inch to one-fourth inch, an additional 5 percent reduction in bag packaging can be achieved. How many po of materials are saved? Dollars saved? 3. Explain why the ultimate disposal qualities of packaging are important environ- mental considerations. 4. Why emphasize saving a material that comes from a renewable resource (trees)? 16-11 ENVIRONMENTAL PERFORMANCE

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