Business Mgmt Ch 28 Vocab

Sustainable operations

business operations that can be sustained in the long term, e.g., by protecting the environment and not damaging the quality of life of future generations

Added value

the difference between the cost of purchasing raw materials and the price the finished goods are sold for

Ecological sustainability

the capacity of ecosystems to maintain their essential functions and processes, and retain their full biodiversity over the long term

Social sustainability

the ability of a community to develop processes and structures that not only meet the needs of its current members but also support the ability of future generations to maintain a healthy community

Economic sustainability

in a business context, using the assets of the company efficiently to allow it to continue functioning profitably over time

Circular business models

a business approach that creates product value whilst at the same time improving resource efficiency by extending the useful life of products and components

Circular economy

a model of production and consumption which involves sharing, leasing, reusing, repairing, refurbishing, and recycling existing materials and products for as long as possible

Operations Management

Combination of all factors of production to produce goods and services in an effective and efficient way

Circular Supply Model

Replacing scarce and natural resources with renewable, recyclable, and/or biodegradable resource inputs

Resource Recovery Model

Converting waste into secondary raw materials

Product Life Cycle Extension Model

Extending the product life cycle of goods through repairing, reconditioning, refurbishing, and renovating

Sharing Model

Allowing customers to share products that have low ownership and/or low usage rates instead of purchasing and owning such items for themselves

Product Service System Models

Focus on providing a service instead of selling a tangible product