@inproceedings{ddb8c9e150544063afe51a005ccb4116,
title = "An analysis of premium payments as a mechanism for securing preferential service in cloud manufacturing",
abstract = "Paying a premium in a cloud manufacturing free market environment will benefit a customer during steady state scenarios, however during disruption this benefit diminishes to zero; dependent on the degree of disruption. These customers will recover quicker from disruptions, but the returns are small compared to the relative increase in cost. A cloud manufacturing scenario without contracts or preferential supply acts as a free market, this significantly increases supply chain risk. The predominant mechanism available to mitigate supply chain risk is the willingness to pay a premium. Agent-based simulation modelling experiments investigated this scenario using an extension of anarchic manufacturing for scheduling and control. The experiments induced a disruptive demand-side step change in requirement mix of capabilities and volume demanded by all customers. One customer was willing to pay a significant premium to the others. The waiting time (non-operating time) was analysed as the benefit and indicator for supply chain performance. The job cost for the customer willing to pay a premium relative to other customers and the relative waiting time were analysed during steady state, disruption, and recovery periods.",
keywords = "Agent-based simulation, Cloud manufacturing, Scheduling and control",
author = "Andrew Ma and Aydin Nassehi and Chris Snider",
year = "2019",
month = jun,
day = "24",
doi = "10.1016/j.procir.2019.03.030",
language = "English",
volume = "81",
series = "Procedia CIRP",
publisher = "Elsevier B.V.",
pages = "168--173",
editor = "Butala, {Peter } and Govekar, {Edvard } and Vrabi{\v c}, {Rok }",
booktitle = "Procedia CIRP",
address = "Netherlands",
note = "52nd CIRP Conference on Manufacturing Systems, CMS 2019 ; Conference date: 12-06-2019 Through 14-06-2019",
}