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A Simplified Decision Making Model for Employing Product Service System in Industry at a Preliminary Planning Stage

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Functional Thinking for Value Creation

Abstract

Many successful companies employ Product Service Systems (PSS) into their business model mainly due to an economic incentive. However, there is no simple and structured approach to ensure an improvement of PSS’s environmental performance at an early decision making stage in lieu selling product. This paper presents a preliminary simplified decision making model for manufacturer’s view to design service parameters of a potential PSS strategy at an early planning stage. The model based on Life Cycle Assessment, Life Cycle Costing, hierarchical clustering and goal programming optimisation methods. Two forklift case studies demonstrated the model applications for leasing and renting strategies.

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© 2011 Springer-Verlag Berlin Heidelberg

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Khumboon, R., Kara, S., Ibbotson, S. (2011). A Simplified Decision Making Model for Employing Product Service System in Industry at a Preliminary Planning Stage. In: Hesselbach, J., Herrmann, C. (eds) Functional Thinking for Value Creation. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-19689-8_32

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  • DOI: https://doi.org/10.1007/978-3-642-19689-8_32

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  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-642-19688-1

  • Online ISBN: 978-3-642-19689-8

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