A rough-fuzzy approach integrating best-worst method and data envelopment analysis to multi-criteria selection of smart product service module

Abstract The revolutionary development and implementation of smart technologies have triggered the manufacturers’ servitization trend towards smart product service system (PSS). Accurate selection of smart product service (SPS) module is critical to successful planning and development of smart PSS concept. This study constructs a list of criteria for SPS module selection from the perspectives of service implementation, value symbiosis and smart capability. The selection can be deemed as a multi-criteria decision-making process including two parts: weight determination of criteria and module ranking, in which the intrapersonal linguistic ambiguousness and interpersonal preference randomness are involved. The best–worst method (BWM) is widely acknowledged as an efficient method for weight determination due to its superiority in quickly finding optimal weight with scant decision data. The data envelopment analysis (DEA) method is proven feasible to prioritize alternatives with cost-based and benefit-based criteria. However, these two methods cannot handle the uncertainties involved in the selection process which may lead to imprecise results. Moreover, the previous research rarely studies simultaneous handling of these two types of uncertainty in the realm of BWM and DEA. Therefore, the current study proposes a novel rough–fuzzy BWM-DEA approach to SPS module selection, with fully capturing both the intrapersonal and interpersonal uncertainties. The application of the proposed approach in the smart vehicle service module selection and the comparisons with other methods demonstrate the validity and effectiveness of the proposed approach.

[1]  Xin Guo Ming,et al.  Sustainable supplier selection for smart supply chain considering internal and external uncertainty: An integrated rough-fuzzy approach , 2020, Appl. Soft Comput..

[2]  J. Godsell,et al.  The roles of internet of things technology in enabling servitized business models: A systematic literature review , 2019, Industrial Marketing Management.

[3]  Nicolas Haber,et al.  PSS modularisation: a customer-driven integrated approach , 2018, Int. J. Prod. Res..

[4]  M. Ritter,et al.  The sharing economy: A comprehensive business model framework , 2019, Journal of Cleaner Production.

[5]  Abraham Charnes,et al.  Measuring the efficiency of decision making units , 1978 .

[6]  C. L. Wu,et al.  Development of sustainability evaluation model for implementing product service systems , 2012, International Journal of Environmental Science and Technology.

[7]  Jeh-Nan Pan,et al.  Achieving customer satisfaction through product-service systems , 2015, Eur. J. Oper. Res..

[8]  Adel Hatami-Marbini,et al.  A taxonomy and review of the fuzzy data envelopment analysis literature: Two decades in the making , 2011, Eur. J. Oper. Res..

[9]  Suihuai Yu,et al.  State-of-the-art of design, evaluation, and operation methodologies in product service systems , 2016, Comput. Ind..

[10]  Dao Yin,et al.  A rough-fuzzy DEMATEL-ANP method for evaluating sustainable value requirement of product service system , 2019, Journal of Cleaner Production.

[11]  Jing Wang,et al.  A multi-phase QFD-based hybrid fuzzy MCDM approach for performance evaluation: A case of smart bike-sharing programs in Changsha , 2018 .

[12]  Antonella Petrillo,et al.  A MULTIPLE CHOICE DECISION ANALYSIS: AN INTEGRATED QFD-AHP MODEL FOR THE ASSESSMENT OF CUSTOMER NEEDS , 2011 .

[13]  Giuditta Pezzotta,et al.  A systematic review of value metrics for PSS design , 2017 .

[14]  F. Zhao,et al.  Intelligent connected vehicles: the industrial practices and impacts on automotive value-chains in China , 2018 .

[15]  Zhiyong Chang,et al.  Evaluation method of product–service performance , 2012, Int. J. Comput. Integr. Manuf..

[16]  Tero Rantala,et al.  Smart technologies and corporate sustainability: The mediation effect of corporate sustainability strategy , 2019, Comput. Ind..

[17]  Ali Azadeh,et al.  A flexible deterministic, stochastic and fuzzy Data Envelopment Analysis approach for supply chain risk and vendor selection problem: Simulation analysis , 2010, Expert Syst. Appl..

[18]  Jian Li,et al.  Multi-criteria decision-making method based on dominance degree and BWM with probabilistic hesitant fuzzy information , 2018, International Journal of Machine Learning and Cybernetics.

[19]  Jerry M. Mendel,et al.  New results about the centroid of an interval type-2 fuzzy set, including the centroid of a fuzzy granule , 2007, Inf. Sci..

[20]  Joseph Sarkis,et al.  A comparative analysis of DEA as a discrete alternative multiple criteria decision tool , 2000, Eur. J. Oper. Res..

[21]  Min-Jun Kim,et al.  Design of informatics-based services in manufacturing industries: case studies using large vehicle-related databases , 2015, Journal of Intelligent Manufacturing.

[22]  Yi Yang,et al.  Some new ranking criteria in data envelopment analysis under uncertain environment , 2017, Comput. Ind. Eng..

[23]  Jerry M. Mendel,et al.  Computing With Words for Hierarchical Decision Making Applied to Evaluating a Weapon System , 2010, IEEE Transactions on Fuzzy Systems.

[24]  H. B. Valami Cost efficiency with triangular fuzzy number input prices: An application of DEA , 2009 .

[25]  Sora Lee,et al.  Dynamic and multidimensional measurement of product-service system (PSS) sustainability: a triple bottom line (TBL)-based system dynamics approach , 2012 .

[26]  Tomohiko Sakao,et al.  A customization-oriented framework for design of sustainable product/service system , 2017 .

[27]  Sora Lee,et al.  Evaluating new concepts of PSS based on the customer value: Application of ANP and niche theory , 2015, Expert Syst. Appl..

[28]  Dimitris Mourtzis,et al.  Performance Indicators for the Evaluation of Product-Service Systems Design: A Review , 2015, APMS.

[29]  Bin Li,et al.  Rough data envelopment analysis and its application to supply chain performance evaluation , 2009 .

[30]  J. Rezaei Best-worst multi-criteria decision-making method , 2015 .

[31]  Moslem Alimohammadlou,et al.  A comparative analysis of dynamic and cross-sectional approaches for financial performance analysis , 2018 .

[32]  Edmundas Kazimieras Zavadskas,et al.  The Selection of Wagons for the Internal Transport of a Logistics Company: A Novel Approach Based on Rough BWM and Rough SAW Methods , 2017, Symmetry.

[33]  Yupeng Li,et al.  PSS solution evaluation considering sustainability under hybrid uncertain environments , 2015, Expert Syst. Appl..

[34]  Walter Brenner,et al.  The Impact of Cyber-physical Systems on Industrial Services in Manufacturing☆ , 2015 .

[35]  Dimitris Mourtzis,et al.  A Lean PSS design and evaluation framework supported by KPI monitoring and context sensitivity tools , 2018 .

[36]  Zhiwen Liu,et al.  A methodological framework with rough-entropy-ELECTRE TRI to classify failure modes for co-implementation of smart PSS , 2019, Adv. Eng. Informatics.

[37]  Xuening Chu,et al.  A new importance-performance analysis approach for customer satisfaction evaluation supporting PSS design , 2012, Expert Syst. Appl..

[38]  Huchang Liao,et al.  The state-of-the-art survey on integrations and applications of the best worst method in decision making: Why, what, what for and what's next? , 2019, Omega.

[39]  Alireza Sotoudeh-Anvari,et al.  A comprehensive MCDM-based approach using TOPSIS, COPRAS and DEA as an auxiliary tool for material selection problems , 2017 .

[40]  Huayou Chen,et al.  An integrated approach to green supplier selection based on the interval type-2 fuzzy best-worst and extended VIKOR methods , 2019, Inf. Sci..

[41]  Jan C. Aurich,et al.  Life cycle oriented design of technical Product-Service Systems , 2006 .

[42]  C. Lerch,et al.  Digitalized Product-Service Systems in Manufacturing Firms: A Case Study Analysis , 2015 .

[43]  Hong Zhou,et al.  A Fuzzy Decision Support Approach for Modularization Scheme Selection of Product-Service Offerings , 2019, IEEE Access.

[44]  Hu-Chen Liu,et al.  A new integrated MCDM model for sustainable supplier selection under interval-valued intuitionistic uncertain linguistic environment , 2019, Inf. Sci..

[45]  Zaifang Zhang,et al.  A systematic decision-making method for evaluating design alternatives of product service system based on variable precision rough set , 2019, J. Intell. Manuf..

[46]  Jerry M. Mendel,et al.  On clarifying some definitions and notations used for type-2 fuzzy sets as well as some recommended changes , 2016, Inf. Sci..

[47]  Stefan Seuring,et al.  Customer experience creation for after-use products: A product–service systems-based review , 2019, Journal of Cleaner Production.

[48]  Li Pheng Khoo,et al.  A survey of smart product-service systems: Key aspects, challenges and future perspectives , 2019, Adv. Eng. Informatics.

[49]  Tomohiko Sakao,et al.  A value based evaluation method for Product/Service System using design information , 2012 .

[50]  Angappa Gunasekaran,et al.  IoT powered servitization of manufacturing – an exploratory case study , 2017 .

[51]  Sen Guo,et al.  Fuzzy best-worst multi-criteria decision-making method and its applications , 2017, Knowl. Based Syst..

[52]  Xinguo Ming,et al.  Explore and evaluate innovative value propositions for smart product service system: A novel graphics-based rough-fuzzy DEMATEL method , 2020 .

[53]  Zhitao Xu,et al.  Modularizing product extension services: An approach based on modified service blueprint and fuzzy graph , 2015, Comput. Ind. Eng..

[54]  Mario Rapaccini,et al.  The role of digital technologies for the service transformation of industrial companies , 2018, Int. J. Prod. Res..

[55]  Zaifang Zhang,et al.  An integrated approach for rating engineering characteristics' final importance in product-service system development , 2010, Comput. Ind. Eng..

[56]  A. Charnes,et al.  Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis , 1984 .

[57]  Hsiao-Fan Wang,et al.  A sustainability-oriented multi-dimensional value assessment model for product-service development , 2013 .

[58]  Dong-Hee Lee,et al.  An evaluation scheme for product–service system models: development of evaluation criteria and case studies , 2015, Service Business.

[59]  J. Rezaei Best-worst multi-criteria decision-making method: Some properties and a linear model , 2016 .

[60]  Felix T.S. Chan,et al.  Multi-objective configuration optimization for product-extension service , 2015 .

[61]  Amir Hossein Ghapanchi,et al.  Fuzzy-Data Envelopment Analysis approach to Enterprise Resource Planning system analysis and selection , 2008, Int. J. Inf. Syst. Chang. Manag..

[62]  Yupeng Li,et al.  A new product service system concept evaluation approach based on Information Axiom in a fuzzy-stochastic environment , 2015, Int. J. Comput. Integr. Manuf..

[63]  Huchang Liao,et al.  Integrating interval-valued multi-granular 2-tuple linguistic BWM-CODAS approach with target-based attributes: Site selection for a construction project , 2020, Comput. Ind. Eng..

[64]  Jannick Højrup Schmidt,et al.  Challenges when evaluating Product/Service-Systems through Life Cycle Assessment , 2016 .

[65]  Thanassis Tiropanis,et al.  Analytics for the Internet of Things , 2018, ACM Comput. Surv..

[66]  Ivan Petrovic,et al.  Modification of the Best-Worst and MABAC methods: A novel approach based on interval-valued fuzzy-rough numbers , 2018, Expert Syst. Appl..

[67]  Janghyeok Yoon,et al.  A chance discovery-based approach for new product–service system (PSS) concepts , 2015 .

[68]  Zhihua Chen,et al.  A hybrid framework integrating rough-fuzzy best-worst method to identify and evaluate user activity-oriented service requirement for smart product service system , 2020, Journal of Cleaner Production.