A product service supply chain network equilibrium considering risk management in the context of COVID-19 pandemic

ABSTRACT

This paper studies the equilibrium decision-making problem of product service supply chain (PSSC) network under the impact of COVID-19 related risks. The PSSC is composed of service-oriented transformation of manufacturing enterprises to sell product service systems (PSSs) to customers. So, under the impact of COVID-19, the network faces dual risks of products and services. This paper constructs the PSSC network of raw material suppli-ers, service providers, manufacturing service integrators and demand markets. Through variational inequalities, a network equilibrium model of PSSC con-sidering risk management was established, and their decision-making problems were discussed. Three numerical examples were used to analyse the impact of risk management on the supply chain network at various levels. The results show that the risk management of upstream and downstream enterprises will have mutual influence, and the cost input of service risk management will ben-efit the entire PSSC network. Therefore, through the diversified development and improvement of services, the market demand for PSSs can be increased.