Costing-based coordination between mt-iPSS customer and providers for job shop production using game theory

Hui Mu, Pingyu Jiang and Jiewu Leng

International Journal of Production Research, 2017, vol. 55, issue 2, 430-446

Abstract: The industrial product-service system for Computer Numerical Control machine tool (mt-iPSS) has drawn much interest. Under the new paradigm of functional result-oriented mt-iPSS, mt-iPSS customer (i.e. owner of the workshop) pays for time or results of mt-iPSS providers. The present problem for mt-iPSS customer is how to timely identify the optimal machine tools, sequence and cutting parameters of operation to finish the jobs while mt-iPSS providers try to maximise their benefit in a non-cooperative game structure. In this paper, a Stackelberg game model is put forward to solve the coordination problem based on the costing of different job shop scheduling solutions under the result-oriented mt-iPSS paradigm. Then, to solve the established bi-level programming model of the Stackelberg game, a solution procedure based on hierarchical particle swarm optimisation is proposed. Finally, a case from a printing machinery enterprise is analysed to validate the proposed model. This research is expected to improve the quality and effectiveness of coordination for scheduling and process planning decision between mt-iPSS customer and multi-providers.

Date: 2017
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Citations: View citations in EconPapers (1)

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DOI: 10.1080/00207543.2016.1184347

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