A Model of Orders Decision-making Cross Supply Chains Under Cloud Manfacturing

Abstract

For the single chain, an enterprise usually deals with the customer order by extending working hours or simply outsourcing when facing the capacity shortage. However, potential operational risks will increase as well. Considering the background of cloud manufacturing, the cluster supply chain consists of two parallel single chains we build the basic model to assign the orders priority within each capacity. Then, considering the inter-chain horizontal cooperation, the extended model is proposed to parallel allocation of cross-chain orders as the orders exceeding one single-chain’s capacity. Lagrange algorithm is implemented, and the simulation analysis shown that the opportunity cost of rejected orders factor and cross-chain orders manufacturing cost factor have significant impacts on orders’ allocation decision, and there is a critical point in the combinations of those two factors. Through combinations, the cluster supply chain can make the acceptance decisions policy and production schedules of priority orders and cross-chain orders, so that customers’ satisfaction and the cluster supply chain’s total profits achieve the best situations.