Economic and Environmental Impacts of Product Service Lifetime: A Life-Cycle Perspective

Minjung Kwak, Harrison Kim

Research output: Chapter in Book/Report/Conference proceedingChapter

Abstract

This paper presents a generic model for evaluating the economic and environmental impacts of product service lifetime, which is important and useful in the design and management of PSS. From a PSS provider’s perspective, the presented model conducts life-cycle costing (LCC) and life-cycle assessment (LCA) simultaneously and quantifies the total life-cycle cost and environmental impact associated with the product lifetime. The entire life cycle of the product is considered, including its manufacturing (or purchase), usage, maintenance, and end-of-life treatment. Applied with a sensitivity analysis of varying product lifetime, the model can identify the optimal service lifetime at which the life-cycle cost and environmental impact can be minimized. To illustrate, the developed model is applied to the example of a piece of currently-marketed agricultural machinery.

Original languageEnglish (US)
Title of host publicationLecture Notes in Production Engineering
PublisherSpringer
Pages177-189
Number of pages13
DOIs
StatePublished - 2013

Publication series

NameLecture Notes in Production Engineering
VolumePart F1129
ISSN (Print)2194-0525
ISSN (Electronic)2194-0533

Keywords

  • Product life cycle
  • life-cycle assessment (LCA)
  • life-cycle costing (LCC)
  • optimal equipment replacement
  • product lifetime planning

ASJC Scopus subject areas

  • Industrial and Manufacturing Engineering
  • Economics, Econometrics and Finance (miscellaneous)
  • Safety, Risk, Reliability and Quality

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