Abstract
Industry 4.0 challenges facilities entrepreneurs to be competitive in the market in terms of energy by rational decision making. The goal of the paper is aimed at introducing Prospect Theory (PT) in Industry 4.0 for making decisions in order to select an optimal energy technology. To reach this goal, an approach for decision making on energy investment has been developed. In this paper, the authors have also provided a new opportunity to apply the new decision making method for strengthening Industry 4.0 by addressing energy concerns based on which rational decisions have been made. The study uses a fuzzy analytical hierarchy process for weighting the evaluation sub-criteria of energy technologies and a modified PT for making decisions related to the selection of one of the investigated technologies. The results show that it is possible to implement PT in Industry 4.0 via a decision making model for energy sustainability. Decision probability was achieved using a behavioral approach akin to Cumulative Prospect Theory (CPT) for the considered technology options. More specifically, the probability has created the same threshold-based decision possibilities. The authors used the case study method based on a company located in North America which produces hardwood lumber. The company uses a heating system containing natural gas-fired boilers. This study has also contributed to the literature on energy sustainable Industry 4.0 by demonstrating a new phenomenon/paradigm for energy sustainability-based Industry 4.0 through using PT. In this context, the main motivation of writing the article has been to promote energy sustainability via complex mechanisms and systems that involve interrelated functions.
Highlights
The present study aims to contribute to this research by explaining how Industry 4.0 may contribute to energy sustainability from decision making point of view using the Prospect Theory (PT)
This paper examined the possible application of PT with fuzzy analytical hierarchy process (AHP) methods within Industry 4.0 to assist decision making about energy efficient investment in order to help practitioners choose and implement 4.0 technologies that will contribute to energy sustainability
The authors have attempted using a decision making approach to explain how decisions will result in investments in energy efficient technology in Industry 4.0
Summary
Challenges faced by stakeholders and the awareness of social and environmental issues and uncertainty are factors that change the way business is done in economic activity. These challenges are the impulse for making decisions under uncertain conditions in Industry 4.0 (I4.0) [1,2]. Cogeneration systems have been proven to be a more efficient energy technology than other recommended technologies, reducing cost and energy sources.
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