Lifecycle Cost Affordability and Performance-Based Contracting – A Managerial Decision Framework Based on Literature Review

This manuscript reviews and synthesizes the product service system, lifecycle affordability, and performance-based contracting (PBC) literature across supply chain management, operations management, and logistics discipline.The study is based on 128 peer-reviewed articles published between 2005 and 2023 in journals related to the supply chain, logistics, and operations management field.The study proposes a framework for lifecycle affordability (LCA) and key aspects of performancebased strategy design and management, performance specification, and cost elements.This study is a robust literature review of lifecycle affordability and performance-based contracting.It proposes a framework to assist in business-tobusiness managerial decision-making to reduce lifecycle costs.