| Article ID: | iaor20001440 |
| Country: | United Kingdom |
| Volume: | 37 |
| Issue: | 1 |
| Start Page Number: | 73 |
| End Page Number: | 90 |
| Publication Date: | Jan 1999 |
| Journal: | International Journal of Production Research |
| Authors: | Matsui M., Yang G., Miya T. |
| Keywords: | job shop |
Suppose that job-shop production systems consist of a sales centre with order-selection and a production centre with switch-over. We consider the control problem of maximizing the marginal profit of a job-shop production system with order-selection and switch-over. First, a stochastic model is proposed to derive the two sub-objective functions: the mean accepted price and the mean operating cost. Next, the stochastic model is formulated in two ways as the cooperative versus non-cooperative control problem of sales and production centres. Finally, the non-monotonic structure of optimal order-selection criteria is found, and the demerit of non-cooperative control is numerically discussed.