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A framework for cost evaluation in product service system configuration

Author

Listed:
  • Jin Shen
  • John Ahmet Erkoyuncu
  • Rajkumar Roy
  • Bin Wu

Abstract

Configuration systems are increasingly used as a means for efficient design of customised product service systems (PSS) to satisfy diverse customer needs. Cost evaluation is thereby important to assist the configuration engineers in making decisions on feasible configuration solutions. However, little research attention has been received until recently. To fill this gap, this paper contributes in developing a framework for cost evaluation in PSS configuration. A holistic view of PSS configuration, the three-dimensional PSS cost element, and a life cycle-oriented cost evaluation approach are successively proposed. The framework is thereby established with a number of parts, including the preparatory stage, the evaluation stage and the configuration stage. A pump PSS is illustrated to validate the developed framework. Four feasible configuration solutions in one configuration activity are evaluated and compared. The configuration engineers are thus assisted with the decision on selecting the one with the least cost.

Suggested Citation

  • Jin Shen & John Ahmet Erkoyuncu & Rajkumar Roy & Bin Wu, 2017. "A framework for cost evaluation in product service system configuration," International Journal of Production Research, Taylor & Francis Journals, vol. 55(20), pages 6120-6144, October.
    • Handle: RePEc:taf:tprsxx:v:55:y:2017:i:20:p:6120-6144
    DOI: 10.1080/00207543.2017.1325528
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    Cited by:

    1. Yilun Zhang & Jianghang Chen & Zhibin Jiang, 2023. "Optimal product service system configuration considering pairing utility and uncertain customer behavior," Flexible Services and Manufacturing Journal, Springer, vol. 35(2), pages 343-375, June.
    2. Zhang, Yilun & Liu, Sicheng & Jiang, Zhibin & Xing, Xinjie & Wang, Jiguang, 2024. "Joint optimization of product service system configuration and delivery with learning-based valid cut selection and a tailored heuristic," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 187(C).
    3. Rodríguez, Arturo Estrada & Pezzotta, Giuditta & Pinto, Roberto & Romero, David, 2020. "A comprehensive description of the Product-Service Systems’ cost estimation process: An integrative review," International Journal of Production Economics, Elsevier, vol. 221(C).
    4. Zaifang Zhang & Darao Xu & Egon Ostrosi & Hui Cheng, 2020. "Optimization of the Product–Service System Configuration Based on a Multilayer Network," Sustainability, MDPI, vol. 12(2), pages 1-25, January.
    5. Farsi, Maryam & Erkoyuncu, John Ahmet, 2021. "An agent-based approach to quantify the uncertainty in Product-Service System contract decisions: A case study in the machine tool industry," International Journal of Production Economics, Elsevier, vol. 233(C).

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