Balancing Supply and Demand in PaaS Markets: A Framework for Profitability, Cost Optimization, and Sustainability

Eryk Szwarc (), Grzegorz Bocewicz, Grzegorz Radzki and Zbigniew Banaszak
Additional contact information
Eryk Szwarc: Faculty of Electronics and Computer Science, Koszalin University of Technology, Sniadeckich 2, 75-453 Koszalin, Poland
Grzegorz Bocewicz: Faculty of Electronics and Computer Science, Koszalin University of Technology, Sniadeckich 2, 75-453 Koszalin, Poland
Grzegorz Radzki: Faculty of Electronics and Computer Science, Koszalin University of Technology, Sniadeckich 2, 75-453 Koszalin, Poland
Zbigniew Banaszak: Faculty of Electronics and Computer Science, Koszalin University of Technology, Sniadeckich 2, 75-453 Koszalin, Poland

Sustainability, 2025, vol. 17, issue 7, 1-25

Abstract: Efficient supply–demand management in Product-as-a-Service (PaaS) markets requires tools to evaluate pricing strategies while integrating sustainability goals like reuse, efficiency, and carbon footprint reduction. This paper introduces a declarative modeling framework aimed at balancing the three pillars of profitability, cost optimization, and sustainability in PaaS markets. The framework addresses risks such as equipment failure, usage variability, and economic fluctuations, helping providers optimize pricing and operating costs while enabling customers to manage expenses. A declarative model is developed to assess the PaaS market balance to determine optimal leasing offers and requests for quotations. A case study is used to validate the framework, involving devices with specific rental prices and failure rates, as well as customer expectations and budget constraints. Computational experiments demonstrate the model’s practical applicability in real-world scenarios and it can be used by PaaS providers to develop competitive leasing strategies, policymakers to assess market stability, and enterprises to optimize procurement decisions. The findings show that the framework can guide decision making, offering insights into the impact of new technologies, compatibility conditions for leasing offers, and strategies for balancing providers’ profits and customers’ costs. The proposed framework has broad applicability across industries such as manufacturing, healthcare, logistics, and IT infrastructure leasing, where efficient resource allocation and lifecycle management are crucial.

Keywords: product-as-a-service (PaaS); trade-off; circular business model; sustainability (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2071-1050/17/7/2823/pdf (application/pdf)
https://www.mdpi.com/2071-1050/17/7/2823/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:17:y:2025:i:7:p:2823-:d:1618192

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().