Abstract
We consider the scarce capacity allocation problem in two parallel machines with inclusive processing set restrictions. Our focus is to design an auction mechanism to allocate the production capacity among several selfish customers effectively and efficiently. In our iterative ascending auction mechanism, we need to design jointly two things: who wins what and who pays what. First, we propose an adaptive ascending pricing policy to ensure that bidding by truthful processing requirements and keeping on bidding until the ask prices reach his real revenue is a dominant strategy for each customer. Second, we establish a facility owner’s profit maximization model to determine the capacity allocation in two parallel machines with inclusive processing set restrictions; it is an NP hard problem; we also develop a heuristic based on the Lagrangian relaxation technology to obtain the suboptimal solutions. Our computational analysis shows that the auction mechanism can achieve more than 87% of the global system value.
Highlights
In current customer-oriented market, the decentralized operating mode has become very popular in the manufacturing industries. is mode can provide services such as product design, manufacturing, and testing for small and medium-sized enterprises by the establishment of a service platform, which is a good solution to the problem of the insufficient funds and talents for small- and medium-sized enterprises, such as the United Microelectronics Corporation (UMC) which uses the online customer information portal MyUMC to provide transparent processing pricing, processing policies, and real-time processing capacity information to customers and allows the selfish customers to make decentralized decisions on booking processing capacity
The testing organization can be described as the “facility owner,” the testing equipment can be described as the “machine,” the set of workpieces can be described as the “order,” and the problem that the facility owner needs to do is allocating the parallel machine capacity to several competing customers, so as to optimize one or more objectives
We formally describe the problem under study as follows: We have a set N of n competing customer orders interested in using the facility owner’s production capacity. e facility owner possesses two parallel machines M1 and M2 which differ in their functionality but not in their processing speeds
Summary
In current customer-oriented market, the decentralized operating mode has become very popular in the manufacturing industries. is mode can provide services such as product design, manufacturing, and testing for small and medium-sized enterprises by the establishment of a service platform, which is a good solution to the problem of the insufficient funds and talents for small- and medium-sized enterprises, such as the United Microelectronics Corporation (UMC) which uses the online customer information portal MyUMC to provide transparent processing pricing, processing policies, and real-time processing capacity information to customers and allows the selfish customers to make decentralized decisions on booking processing capacity. The testing organization can be described as the “facility owner,” the testing equipment can be described as the “machine,” the set of workpieces can be described as the “order,” and the problem that the facility owner needs to do is allocating the parallel machine capacity to several competing customers, so as to optimize one or more objectives. We propose an iterative ascending auction mechanism to solve the capacity allocation problem in two parallel machines with IPS restrictions. E pricing policy can make the customers bid by their truthful processing requirements and keep on bidding until the ask prices reach their real revenue In this way, the customers’ local decisions can prompt the facility owner to make decisions that promote the achievement of the collective goal.
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