Hierarchical Planning for Industrial Product Service Systems

Industrial Product Service Systems (IPS²) are an innovative business model for engineering enterprises, integrating products and services. A substantial portion of later operating costs is determined by decisions in the design phase. This leads to a hierarchical problem structure: On the strategic planning level, configuration of IPS² is accomplished regarding customers’ requirements and uncertainties. Revenues and (adaptation) costs during the subsequent delivery phase have to be anticipated. The operative planning level is concerned with the use of a given IPS². Later changes of business models are only possible within the scope of the strategic plan. The more uncertainties strategic planning faces, the more flexibility has to be provided in order to assure a successful coordination of both levels.