Simulation modelling of product-service systems: The missing link

The Product-Service Systems (PSS) concept requires effective management of resources and supply networks in the long term which involve greater uncertainties than that in the productionbased system commonly found in manufacturing companies. This calls for a tool capable of evaluating the impacts of the shift of the business strategy to tactical and operational levels to help firms make decisions. The demand signals between production-based systems and PSS are typically different due to the customer involvements in service activities after product selling. For this reason, existing decision making tools in the production-based context may not be capable to suitably model PSS businesses. Simulation techniques can be used prior to the physical design of complex systems that incorporate internal interactions between entities in supply networks. This paper explores the application of simulation modelling within the PSS context. The current state of simulation modelling of PSS is summarised and the simulation parameters typically used in PSS modelling are described. The analysis shows various shortcomings of work in the literature. Existing simulation modelling approaches should, in fact, be enhanced to address different levels and types of performance measures required in PSS.