Optimizing a warranty–based sustainable product service system using game theory
In recent years, the concepts of sustainability and product service system have been closely associated with each other. In today’s competitive markets, due to Extended Producer Responsibility and customer environmental awareness, producers shift from ‘product-seller’ towards ‘product-service provid...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2018-09-01
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| Series: | International Journal of Sustainable Engineering |
| Subjects: | |
| Online Access: | http://dx.doi.org/10.1080/19397038.2017.1387187 |
| Summary: | In recent years, the concepts of sustainability and product service system have been closely associated with each other. In today’s competitive markets, due to Extended Producer Responsibility and customer environmental awareness, producers shift from ‘product-seller’ towards ‘product-service provider’ for using the environmental and economic advantages of coupling a product with services. This paper proposes a novel approach to determine the optimal warranty period and the out-of-warranty replacement period, from the point of view of the producer and the customer to minimise the total cost of usage and end of life of product. As regards the fact that adopted strategies by producers and customers sometimes are in conflict and it affects choosing the optimal product usage period, a game theory model was developed in this study. Finally, a case study with data from chain of local notebook service centres was applied to demonstrate some practical aspects of the developed model. |
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| ISSN: | 1939-7038 1939-7046 |