Leader–Follower Joint Optimization of Product Configuration and Service Configuration from a Product–Service System Perspective

To design Product–Service System (PSS) schemes that meet individual customer requirements, the configuration of technology systems is commonly used to select and assemble preferable modules from a predefined product and service library under certain constraints. Service delivery and realization have a significant impact on customer satisfaction in PSSs. However, existing research seldom considers the interactions between PSS configuration and service delivery. This paper focuses on two key stakeholders in PSS configuration: the product manufacturer (PSS provider) and the service providers. A bi-level optimization model based on Stackelberg game theory is proposed to configure the optimal PSS solution. Firstly, the upper-level optimization problem represents the PSS configuration as a leader to maximize customer satisfaction. Secondly, the lower-level optimization problem represents service configuration as a follower to minimize the service supply cost. Thirdly, an improved Dual-Population Co-evolutionary Hybrid Algorithm (DPC-NMHA), combining NSGA-II and MOPSO, is proposed to solve the bi-level optimization model. Finally, the feasibility and effectiveness of the proposed method are demonstrated through a case study of a refrigerator PSS configuration.