Portfolios selection decision model for equipment system of systems considering development costs

In the planning and construction of equipment system of systems (ESoS), resources (e.g., raw materials, costs) are not infinite. Decision makers (DMs) or SoS experts must select the optimal equipment portfolios for engineering and manufacturing under many constraints. Aiming to solve this problem, a hybrid method integrated network DEA and grey target model is introduced. Firstly, modelling the ESoS. By the network DEA approach, each ESoS is described as a three-stage network decision unit with inputs and outputs. Then calculate the input–output efficiency of equipment portfolios from the perspective of benefit and we consider two situations about development cost. Finally, with three stages efficiency as objectives, the grey target technique is applied to rank the portfolios. Moreover, the case study verifies the feasibility and efficacy of the proposed methodology via selection decision results obtained with development cost is sufficient or limited. DMs can use the suggested methodology to help them make decisions on the difficulty of selecting equipment portfolios. The network DEA approach makes the first attempt in the literature at ESoS input–output efficiency evaluation; based on this, the performance and cost of single equipment and the ESoS effect are all taken into account in the selection process.