A Product Service Supply Chain Network Equilibrium Model considering Capacity Constraints

Abstract

With the further development of manufacturing servitization, the supply chain established by enterprises has gradually evolved into a product service supply chain. The introduction of service flow has made supply chain management more complicated. In this paper, we build a product service supply chain network composed of raw material suppliers, service providers, manufacturing integrators, and customers. The equilibrium model for decision-makers at all levels is established by variational inequality. In particular, we emphasize the impact of product and service capacity constraints and changes in the product service integration ratio on network equilibrium. The results show that, while capacity constraints on production tend to stabilize and unify the market price, service-related capacity constraints polarize the customer pay price. That is to say, product capability constraints limit the quality of product service systems, while service capability constraints limit the types of product service systems. Furthermore, the introduction of service flow and integration with products creates a more closely networked relationship between the upper and lower layers of the product service supply chain, and an increase in the service proportion will increase the network equilibrium profit.