Industrial Engineering Journal

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Service Derivative Solutions Decision-making Based on Cumulative Prospect Theory

  

  1. School of Management,Jiangsu University,Zhenjiang 212013,China
  • Online:2016-04-30 Published:2016-05-27

Abstract:

In the context of constant integration of manufacturing and service industries, an urgent problem of manufacturing companies is how to expand service activities relying on the existing superior manufacturing resources, solving service-oriented manufacturing. On the basis of the relevant literature review, the process of solutions for generating service derivative is portrayed. The evaluative index system of service derivative solutions, which embodies the characteristics of service-oriented manufacturing, is constructed. The evaluation of service derivative solutions is based on the cumulative prospect theory. The analysis of example results shows that evaluation index system considers the three comprehensive factors, which are the physical products, supply and demand behavior and services provided, to ensure service derivative solutions more effectively adapting to the overall coordination of customer behavior and coordination in and out of the system. The cumulative prospect theory can support the evaluation of solutions for generating service derivative. The research conclusions provide theoretical guidance for the decisionmaking of service derivative in serviceoriented manufacturing.

Key words: service-oriented manufacturing, service derivative, cumulative prospect theory, solution evaluation