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

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.