Cyber-physical systems (CPS) enable unprecedented communication between product designers and manufacturers. Effective use of these technologies both enables and requires a new paradigm of methods and models to identify the most profitable and environmentally friendly production plans for a manufacturing network. The operating system for cyber-physical manufacturing (OSCM) and the paired network operations administration and monitoring (NOAM) software are introduced. These technologies guide our development of a mixed integer bilevel programming (BP) model that models the hierarchy between designers and manufacturers as a Stackelberg game while considering multiple objectives for each of them. Designers select and pay manufacturers, while manufacturers decide how to execute the order with the payment provided by the designer. To solve the model, a tailored solution method combining a decomposition-based approach with approximation of the lower level Pareto-optimal solution set is proposed. The model is applied to a case study based on a network of manufacturers in Wisconsin and Illinois. With the proposed model, designers and manufacturers alike can take full advantage of CPS to increase profits and decrease environmental impacts.

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