Abstract: A method of game decision-making analysis is proposed to solve the design conflict between quality and cost with different schemes on the problem of tolerance allocation optimization. First, the quality requirement and its relation with cost in the assembly process is regarded as a multi-object optimization problem. Then it is transferred to a game model through establishing the players, payoff functions and classifying the strategies according to the characteristics of reconciling the conflicts. Finally the Nash equilibrium based on non-cooperative game is given through automatic competition and cooperation of players so as to improve some limitation of previous common methods which depend on all kinds of experience or other subjective decision-making knowledge. This method is applied to an example of auto body sub-assembly. The result of game theory compared to the linear weighted sum analysis shows that the proposed method is effective and meaningful in engineering application.

Key words: Multi-object optimization, Nash equilibrium, Non-cooperative game, Tolerance allocation