Applicability of market-based competition models for energy efficient factory automation systems

This paper analyzes the applicability of two economy competition models (namely, Cournot and Bertrand) to analyze smart factory automation systems. The manufacturing setting considered includes players from both the Manufacturing Execution Systems (MES) layer - machines and transportation devices - and the Enterprise Resource Planning (ERP) layer - energy providers and lighting systems. All actors act both as providers and requestors of energy relevant services. An answer is attempted to several questions raised in the presented context (What is price/cost? What are the services provided / requested? Who are the price setters? Who makes profit in the discussed setting?). Many other questions remain open for further research. The intention is to provide initial guidelines for simulation / implementation of the proposed approach in a real factory automation setting.