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

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  • Hui Mu
  • Pingyu Jiang
  • Jiewu Leng

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.

Suggested Citation

  • Hui Mu & Pingyu Jiang & Jiewu Leng, 2017. "Costing-based coordination between mt-iPSS customer and providers for job shop production using game theory," International Journal of Production Research, Taylor & Francis Journals, vol. 55(2), pages 430-446, January.
    • Handle: RePEc:taf:tprsxx:v:55:y:2017:i:2:p:430-446
    DOI: 10.1080/00207543.2016.1184347
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    Cited by:

    1. Li, Ai Qiang & Kumar, Maneesh & Claes, Björn & Found, Pauline, 2020. "The state-of-the-art of the theory on Product-Service Systems," International Journal of Production Economics, Elsevier, vol. 222(C).

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