Abstract:

Military equipment ordering price is the focus of interest dispute between the military and the contractors. In order to motivate the contractors to produce, taking cost, quality and progress as incentive factors, and considering the interests of both parties, based on integrating the three factors into the same function, the bi-level decision-making model of the multi-factor incentive pricing is built. The upper model takes the incentive coefficients as the decision-making variables and maximize the military economic benefits of the military as the objective, the lower model takes the efforts'degree as the decision-making variables and maximize the expected utility of the contractors as the objective. To solve the model and obtain the relatively optimal incentive coefficients, by integrating the fast search capability of particle swarm optimization algorithm with the global search ability of tabu search, the tabu search-particle swarm optimization (TS-PSD) algorithm with test factor is designed. Finally, a case is studied to demonstrate the rationality of the method and algorithm, which can effectively guide the contractors to strive for the goal expected by the military and achieve win-win.

Key words: military equipment ordering, incentive pricing, cost-quality-progress, bi-level decision-making model, hybrid particle swarm optimization algorithm