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Joint quality and maintenance decisions under servitization business model.
- Source :
- International Journal of Production Research; Mar2024, Vol. 62 Issue 5, p1567-1585, 19p
- Publication Year :
- 2024
-
Abstract
- Under servitization (one paradigm of non-ownership-transfer) business model such as sharing, a manufacturer is responsible not only for product design but also for maintenance. This paper deals with joint decision of product quality and maintenance under servitization. A model minimising total cost is formulated to obtain the optimal product quality, maintenance effort and maintenance times. We find that the total cost first decreases then increases with product quality, maintenance effort and maintenance times. Moderate quality and maintenance effort level are the best for the manufacturer, because too high or too low quality and effort cause too high total cost. However, preventive maintenance should be implemented as many times as possible until the failure cost is reduced to zero as long as each maintenance can save cost. Moreover, in the optimal joint decision, the product quality, maintenance effort and maintenance times are negatively correlated in pairs. In addition, we explore the impact of unit failure cost, product lifecycle, production cost, maintenance cost, and failure intensity on the manufacturer's optimal decisions. In extensions, we further take penalty cost, exponential failure distribution, discount rate, and customer usage into account. This paper provides insight for the manufacturer to jointly consider product design and maintenance under servitization. [ABSTRACT FROM AUTHOR]
- Subjects :
- BUSINESS models
INDUSTRIAL costs
PRODUCT quality
DISCOUNT prices
PRODUCT design
Subjects
Details
- Language :
- English
- ISSN :
- 00207543
- Volume :
- 62
- Issue :
- 5
- Database :
- Complementary Index
- Journal :
- International Journal of Production Research
- Publication Type :
- Academic Journal
- Accession number :
- 175301620
- Full Text :
- https://doi.org/10.1080/00207543.2023.2197079