Towards a new framework: Understanding and managing the supply chain for product-service systems

Author(s):  
Zhitao Xu ◽  
Xinguo Ming ◽  
Wenyan Song ◽  
Miao Li ◽  
Lina He ◽  
...  
2020 ◽  
Vol 2020 ◽  
pp. 1-15
Author(s):  
Yongtao Peng ◽  
Dan Xu ◽  
Yaya Li ◽  
Kun Wang

With the further development of manufacturing servitization, the supply chain established by enterprises has gradually evolved into a product service supply chain. The introduction of service flow has made supply chain management more complicated. In this paper, we build a product service supply chain network composed of raw material suppliers, service providers, manufacturing integrators, and customers. The equilibrium model for decision-makers at all levels is established by variational inequality. In particular, we emphasize the impact of product and service capacity constraints and changes in the product service integration ratio on network equilibrium. The results show that, while capacity constraints on production tend to stabilize and unify the market price, service-related capacity constraints polarize the customer pay price. That is to say, product capability constraints limit the quality of product service systems, while service capability constraints limit the types of product service systems. Furthermore, the introduction of service flow and integration with products creates a more closely networked relationship between the upper and lower layers of the product service supply chain, and an increase in the service proportion will increase the network equilibrium profit.


2020 ◽  
Vol 1 ◽  
pp. 1365-1374
Author(s):  
J. A. Schneider ◽  
M. M. Gatzen ◽  
R. Lachmayer

AbstractThe use of product-service systems business models is increasing in today's economy. Because the products that provide the service to the customers incur cost during their lifetime, the method of lifecycle costing finds wide-spread use. However, this paper shows the current methods have some inaccuracies when determining lifecycle costs. The methods do not consider the required number of products necessary to provide the offered service to the customers. This paper describes a new framework for lifecycle costing that includes these cost components.


2020 ◽  
Vol 1 ◽  
pp. 1345-1354
Author(s):  
C. Rennpferdt ◽  
D. Krause

AbstractDue to increasing cost pressure, companies are expanding their product range and therefore increasingly offering so-called product-service systems (PSS) to increase sales. At the same time, PSS can also contribute to an increase in variety-induced complexity in the company, which ultimately further increases cost pressure. In this article, the causes and effects of variety-induced complexity through products, services and PSS are analysed and the need for a new PSS design method is then demonstrated. Finally, a new framework is presented that enables the design of variety-oriented PSS.


2021 ◽  
Vol 13 (4) ◽  
pp. 2118
Author(s):  
Emma Johnson ◽  
Andrius Plepys

Business models like product-service systems (PSSs) often recognise different sustainability goals and are seen as solutions for the impacts of consumption and fast fashion, but there is a lack of evidence supporting the environmental claims of such business models for clothing. The research aimed to understand if rental clothing business models such as PSSs have the environmental benefits often purported by quantifying the environmental impacts of rental formal dresses in a life-cycle assessment (LCA) in a case study in Stockholm, Sweden. The effects of varying consumer behaviour on the potential impact of a PSS vs. linear business model are explored through three functional units and 14 consumption scenarios. How users decide to engage with clothing PSSs dictates the environmental savings potential that a PSS can have, as shown in how many times consumers wear garments, how they use rental to substitute their purchasing or use needs, as well as how consumers travel to rental store locations.


2021 ◽  
Vol 295 ◽  
pp. 126286
Author(s):  
Heather A. Schoonover ◽  
Oksana Mont ◽  
Matthias Lehner

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