A framework of order evaluation and negotiation for SMMEs in networked manufacturing environments

Abstract

In the context of enhancing the manufacturing abilities of Chinese small- and medium-sized manufacturing enterprises (SMMEs), the present paper reports on a framework of order evaluation and negotiation of collaborative manufacturing for SMMEs in networked manufacturing environments. First, the background and problem domain are introduced. Then the information required to evaluate and negotiate orders is examined in a collaborative manufacturing process. Based on this information, a framework of order evaluation is built on the profit and due date, and then an order negotiation model framework, combined with an order evaluation model, is also presented. At the same time, a standardized negotiation process is described in more detail. Finally, a case study is presented to illustrate how business-to-business SMMEs evaluate and negotiate an order with a business-to-customer SMME to obtain the best profit-due date trade-off.

Keywords:

• Order evaluation
• Negotiation
• Networked manufacturing
• Planning horizon

Acknowledgements

This work was supported by the National Science Foundation of China under Grant No. 60574054, the program for New Century Excellent Talents in University of China (NCET 2006), Climb Mountain Program of Shanghai Science and Technology Committee under Grant No. 06211202 and the National High-Tech. R&D Program for CIMS, China (Grant No. 2003AA414120). The authors would like to express their sincere appreciation to the anonymous referees for their detailed and helpful comments to improve the quality of the paper.