Networked manufacturing:: The impact of information sharing

• Published in: International journal of production economics Vol. 58; no. 1; pp. 63 - 79
• Main Authors: D'Amours, Sophie, Montreuil, Benoit, Lefrançois, Pierre, Soumis, François
• Format: Journal Article
• Language: English
• Published: Amsterdam Elsevier B.V 1999; Elsevier Science; Elsevier; Elsevier Sequoia S.A
• Series: International Journal of Production Economics
• Subjects: Alliances; Applied sciences; Exact sciences and technology; Information dissemination; Information sharing; Information systems; Manufacturing; Networked Manufacturing; Operational research and scientific management; Operational research. Management science; Optimization; Planning; Planning. Forecasting; Production planning; Scheduling, sequencing; Studies; Supply chains; Supply-chain; Networked Manufacturing; Planning; Supply-chain; Information sharing; Optimization; Information systems; Cost minimization; Information system; Sharing; Network; Supply; Linear programming; Scheduling; Manufacturing
• ISSN: 0925-5273; 1873-7579
• DOI: 10.1016/S0925-5273(98)00088-7

In this paper we address the impact of information sharing between firms of a manufacturing network. Firms of the network are selected and scheduled to produce an order based on a price–time evaluation of their bids using an optimal planning model for networked manufacturing. Networking strategies, where business relationships are characterized by different levels of shared information on price and capacity, are classified. An illustrative example sketches the impact of information sharing on networked manufacturing using three different kinds of bidding protocol expressing how firms aggregate their information to conform to networking requirements. Finally, the results show that higher networking flexibility in terms of price–time alternatives can be achieved when firms favor tight partnership relations, offering consequently a better scheduling performance.