Occurrence of co-production

The occurrence of co-production is a category of the ESSENZ method determining supply risks. The occurrence of co-production poses a supply risk due to the dependencies between the primary product and the by-products. Co-production arises when multiple products are generated simultaneously from a single production process. Co-production yields from specific processes often have fixed ratios. As a result, if the demand for one product changes, it becomes challenging to adjust production so that it accommodates the varying demands while maintaining the optimal ratio. This inflexibility can lead to either shortages or excess inventory for co-produced products, thus increasing the supply risk of co-products. The data is based on M. Angerer, G. Erdmann, L. Marscheider-Weidemann, F. Scharp, M. Lüllmann, A. Handke, V. Marwerde (2009): Rohstoffe für Zukunftstechnologien, Stuttgart.