IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v254y2022ics0925527322002092.html
   My bibliography  Save this article

Economic implications of equipment sharing under cloud manufacturing

Author

Listed:
  • Hu, Jiahong
  • Wang, Kangzhou
  • Liu, Yongkui

Abstract

In the development of new information and communication technologies, cloud manufacturing (CMfg) has emerged as a novel and collaborative manufacturing model that enables original equipment manufacturers (OEMs) and clients to share their manufacturing equipment with other clients who do not own equipment. This study focuses on business-to-business (B2B), OEM-to-business (O2B), and B2B&O2B sharing scenarios under CMfg and develops an analytical framework to explore the implications of equipment sharing on retail price, ownership, usage, and environment. Compared with the traditional selling model, the three sharing scenarios result in either higher or lower retail price, ownership, usage, and environmental impact depending on clients' operation cost. Specifically, the higher the operation cost, the lower the retail price. In the B2B scenario, higher ownership, usage, and environmental impact appear only if the operation cost and platform service level are synchronously high/low. Meanwhile, higher ownership and lower usage and environmental impact in B2B&O2B only come with low operation cost. O2B and B2B&O2B surprisingly have the same sharing implications as they involve the same number of equipment units, usage, and environmental impact. Furthermore, this study explores the influence of other crucial factors, such as commission fee, which has opposite effects on ownership in B2B and B2B&O2B, and sharing's effect on the disparity of ownership between heterogeneous clients.

Suggested Citation

  • Hu, Jiahong & Wang, Kangzhou & Liu, Yongkui, 2022. "Economic implications of equipment sharing under cloud manufacturing," International Journal of Production Economics, Elsevier, vol. 254(C).
  • Handle: RePEc:eee:proeco:v:254:y:2022:i:c:s0925527322002092
    DOI: 10.1016/j.ijpe.2022.108627
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527322002092
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.ijpe.2022.108627?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Apostolos Filippas & John J. Horton & Richard J. Zeckhauser, 2020. "Owning, Using, and Renting: Some Simple Economics of the “Sharing Economy”," Management Science, INFORMS, vol. 66(9), pages 4152-4172, September.
    2. Vishal V. Agrawal & Ioannis Bellos, 2017. "The Potential of Servicizing as a Green Business Model," Management Science, INFORMS, vol. 63(5), pages 1545-1562, May.
    3. Saif Benjaafar & Guangwen Kong & Xiang Li & Costas Courcoubetis, 2019. "Peer-to-Peer Product Sharing: Implications for Ownership, Usage, and Social Welfare in the Sharing Economy," Management Science, INFORMS, vol. 65(2), pages 477-493, February.
    4. Yongkui Liu & Lihui Wang & Xi Vincent Wang & Xun Xu & Lin Zhang, 2019. "Scheduling in cloud manufacturing: state-of-the-art and research challenges," International Journal of Production Research, Taylor & Francis Journals, vol. 57(15-16), pages 4854-4879, August.
    5. Jun Pei & Ping Yan & Subodha Kumar & Xinbao Liu, 2021. "How to React to Internal and External Sharing in B2C and C2C," Production and Operations Management, Production and Operations Management Society, vol. 30(1), pages 145-170, January.
    6. Baojun Jiang & Lin Tian, 2018. "Collaborative Consumption: Strategic and Economic Implications of Product Sharing," Management Science, INFORMS, vol. 64(3), pages 1171-1188, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chomachaei, Fahimeh & Gal-Or, Esther & Letizia, Paolo & Roma, Paolo, 2024. "The economic viability of the sharing economy business model and its environmental impact," European Journal of Operational Research, Elsevier, vol. 315(3), pages 1197-1209.
    2. Vibhanshu Abhishek & Jose A. Guajardo & Zhe Zhang, 2021. "Business Models in the Sharing Economy: Manufacturing Durable Goods in the Presence of Peer-to-Peer Rental Markets," Information Systems Research, INFORMS, vol. 32(4), pages 1450-1469, December.
    3. Hu, Xu & Yang, Zhaojun & Sun, Jun & Zhang, Yali, 2021. "Sharing economy of electric vehicle private charge posts," Transportation Research Part B: Methodological, Elsevier, vol. 152(C), pages 258-275.
    4. Koharu Nakao, 2024. "Peer-to-Peer Sharing in the E-Commerce Market," Discussion Paper Series 277, School of Economics, Kwansei Gakuin University.
    5. Bin Dai & Yu Nu, 2020. "Pricing and capacity allocation strategies: Implications for manufacturers with product sharing," Naval Research Logistics (NRL), John Wiley & Sons, vol. 67(3), pages 201-222, April.
    6. Syed Tariq Anwar, 2023. "The sharing economy and collaborative consumption: Strategic issues and global entrepreneurial opportunities," Journal of International Entrepreneurship, Springer, vol. 21(1), pages 60-88, March.
    7. Zhang, Yu & Huang, Min & Tian, Lin & Cai, Gangshu George & Jin, Delong & Fan, Zhiping, 2023. "Manufacturer’s product line selling strategy and add-on policy in product sharing," European Journal of Operational Research, Elsevier, vol. 308(3), pages 1332-1343.
    8. Pang, Chen & Li, Gang & Jiang, Li, 2023. "Leveraging strategic consumer behavior in consumer-to-consumer resale: From economic and environmental perspectives," Omega, Elsevier, vol. 120(C).
    9. Zenan Zhou & Xiang Wan, 2022. "Does the Sharing Economy Technology Disrupt Incumbents? Exploring the Influences of Mobile Digital Freight Matching Platforms on Road Freight Logistics Firms," Production and Operations Management, Production and Operations Management Society, vol. 31(1), pages 117-137, January.
    10. Nicole Stofberg & Flore Bridoux & Francesca Ciulli & Niccolò Pisani & Ans Kolk & Marlene Vock, 2021. "A Relational‐Models View to Explain Peer‐to‐Peer Sharing," Journal of Management Studies, Wiley Blackwell, vol. 58(4), pages 1033-1069, June.
    11. Wang, Yingjia & Fan, Di & Fung, Yi-Ning & Luo, Suyuan, 2022. "Consumer-to-consumer product exchanges for original fashion brands in the sharing economy: Good or bad for fashion knockoffs?," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 158(C).
    12. Dan Wang & Liang Yan & Fangli Ruan, 2022. "A Combined IO-DEMATEL Analysis for Evaluating Sustainable Effects of the Sharing Related Industries Development," Sustainability, MDPI, vol. 14(9), pages 1-23, May.
    13. Huiqi Guan & Xin Geng & Haresh Gurnani, 2023. "Peer‐to‐peer sharing platforms with quality differentiation: Manufacturer's strategic decision under sharing economy," Production and Operations Management, Production and Operations Management Society, vol. 32(2), pages 485-500, February.
    14. Chaojun Wang & Jingwei Wang & Yi Zhang & Jairus Odawa Malenje & Yin Han, 2024. "Optimizing Taxi-Pooling Operations to Enhance Efficiency and Revenue: A Queuing Model Approach," Mathematics, MDPI, vol. 12(20), pages 1-22, October.
    15. Chen Jin & Luyi Yang & Cungen Zhu, 2023. "Right to Repair: Pricing, Welfare, and Environmental Implications," Management Science, INFORMS, vol. 69(2), pages 1017-1036, February.
    16. Saif Benjaafar & Ming Hu, 2020. "Operations Management in the Age of the Sharing Economy: What Is Old and What Is New?," Manufacturing & Service Operations Management, INFORMS, vol. 22(1), pages 93-101, January.
    17. André, Francisco J. & Arguedas, Carmen & Rousseau, Sandra, 2024. "Strategic pricing, lifespan choices and environmental implications of peer-to-peer sharing," Journal of Environmental Economics and Management, Elsevier, vol. 125(C).
    18. Sun, Lingling & Qiu, Jing & Han, Xiao & Yin, Xia & Dong, Zhaoyang, 2020. "Per-use-share rental strategy of distributed BESS in joint energy and frequency control ancillary services markets," Applied Energy, Elsevier, vol. 277(C).
    19. Asad Mohsin & Jorge Lengler, 2021. "Airbnb Hospitality: Exploring Users and Non-Users’ Perceptions and Intentions," Sustainability, MDPI, vol. 13(19), pages 1-20, September.
    20. Guo, Dongliang & Fan, Zhi-Ping & Sun, Minghe, 2022. "B2C car-sharing services: Sharing mode selection and value-added service investment," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 165(C).

    More about this item

    Keywords

    Cloud manufacturing; Sharing economy; OEM; B2B; O2B;
    All these keywords.

    JEL classification:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:254:y:2022:i:c:s0925527322002092. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.