It’s crazy blog Friday! Tell me again why our price on plastic bags is going up.

February 4th, 2011

Why do buyers and category managers need commodity education?

Because the price increases relating to plastic bags is based on a Non-Renewable Resource which is oil.

Some plastics are produced from oil feedstocks.  And some resins use natural gas feed stocks.  So if what you make the product from goes up in price the finished product must go up in price.

For those of you that remember Professor Irwin Corey I offer the following explanation of what a non renewable resource like oil is or in fact is not if in fact it actually is renewable.

So according to a variety of sources such as Wikipedia and the SafeSourcing Wiki, a non-renewable resource is a natural resource that cannot be renewed through production on an effective scale. However with that said there is the theory of a biogenic fuel which hypothesizes that petroleum was formed from deep carbon deposits, perhaps dating to the formation of the Earth. In the case of the former the resources are either consumed too quickly to be naturally replenished or only exist in a fixed amount. In the case of the later, the biogenic hypothesis suggests that a great deal more petroleum exists on our planet and maybe others like Pluto or Uranus than commonly thought.

So, is what I think I said what you thought you heard? We’ll leave that up to the good professor.

Enjoy your weekend.

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