Table 2 Decision variables and...

Table 2

Decision variables and parameters

Symbol	Description	Symbol	Description
$a$	Potential market size of the product	$i$	Service intelligence level
$C_{s}$	Unit cost of service	$W$	Product wholesale prices
$b$	Price sensitivity factor for services(⁠ $b > 1$ ⁠)^*	$P_{p}$	Product price
$ρ$	Cost-saving factor	$P_{s}$	Service price
$β$	Sensitivity of service intelligence level	$D_{p}$	Product demand
$k$	Cost factor of service intelligence transformation	$D_{s}$	Service demand, $D_{s} = D_{p} - b P_{s} + β i$
$γ$	Service quality sensitivity factor	$π_{m}$	Manufacturer profit
$q$	Initial quality of service	$π_{s}$	Seller profit
$\overset{̅}{q}$	Service quality after intelligent transformation of services based on industrial internet platforms	$π_{s c}$	Total supply chain system profit
$D_{p} = a - P_{p} + γ \overset{̅}{q}$	Product demand function in the industrial Internet platform environment	${D_{p}}^{*} = a - P_{p} + γ q$	Product demand function in the traditional scenario
$k i^{2} / 2$	Relationship between manufacturers’ platform R&D investment costs and the level of service intelligence	$C_{s} (1 - ρ i)$	the manufacturer’s unit product service cost in an industrial Internet platform environment

Symbol	Description	Symbol	Description
$a$	Potential market size of the product	$i$	Service intelligence level
$C_{s}$	Unit cost of service	$W$	Product wholesale prices
$b$	Price sensitivity factor for services( $b > 1$ )^*	$P_{p}$	Product price
$ρ$	Cost-saving factor	$P_{s}$	Service price
$β$	Sensitivity of service intelligence level	$D_{p}$	Product demand
$k$	Cost factor of service intelligence transformation	$D_{s}$	Service demand, $D_{s} = D_{p} - b P_{s} + β i$
$γ$	Service quality sensitivity factor	$π_{m}$	Manufacturer profit
$q$	Initial quality of service	$π_{s}$	Seller profit
$\overset{̅}{q}$	Service quality after intelligent transformation of services based on industrial internet platforms	$π_{s c}$	Total supply chain system profit
$D_{p} = a - P_{p} + γ \overset{̅}{q}$	Product demand function in the industrial Internet platform environment	${D_{p}}^{*} = a - P_{p} + γ q$	Product demand function in the traditional scenario
$k i^{2} / 2$	Relationship between manufacturers’ platform R&D investment costs and the level of service intelligence	$C_{s} (1 - ρ i)$	the manufacturer’s unit product service cost in an industrial Internet platform environment

Note(s): *Services are often regarded as value-added offerings provided after the sale of physical products. Consumer demand for such services typically exhibits high price elasticity. Empirical studies indicate that the price elasticity of demand for services tends to be greater than 1

Source(s): Authors’ own creation

[ViewLarge]

Sharing Unavailable