Order matching mechanism of the production intermediation internet platform between retailers and manufacturers
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ORIGINAL ARTICLE
Order matching mechanism of the production intermediation internet platform between retailers and manufacturers Shupan Guo 1 & Ming Dong 1 Received: 31 August 2020 / Accepted: 24 September 2020 # Springer-Verlag London Ltd., part of Springer Nature 2020
Abstract Taking the real-world Internet platform “Tao Factory” of Alibaba as an example, the order matching mechanism between manufacturers and retailers is studied. This platform first collects multi-variety small batch orders from retailers and modular production resources from manufacturers, and then matches production orders according to the needs of both parties. Considering the characteristics of the matching process, we take the qualifications of all manufacturers matched to the orders and total transportation costs as optimization goals and establish an order matching model. In order to expand the search space algorithm, we introduce the niche strategy, which can remove crowded particles and make the particle swarm evenly distributed. In addition, the local search method is combined to improve the particle swarm algorithm, and the double-object ZDT test function set is used to verify the superiority of the improved multi-objective particle swarm algorithm (IMOPSO). Finally, based on the order matching model and IMOPSO, simulation experiments are conducted to determine the factors that affect the use of manufacturers’ idle capacity and provide some constructive suggestions for small and medium-sized manufacturers (SMEs). Keywords Production intermediation platform . Capacity sharing . MOPSO algorithm
1 Introduction China has become the world’s largest manufacturing country after 40 years’ development. However, low- and medium-end production mode like a world factory brings economic benefits while causing a series of realistic issues such as excessive production capacity, unreasonable industrial structure, weak innovation capability, and inefficient resource utilization, especially for small and medium-sized enterprises. Additionally, with the rise of labor costs in China, more and more SMEs are losing foreign trade orders, thus resulting in occasional idle production capacity. Usually, small retailers have spent lots of time and effort with manufacturers to communicate production requirements offline. The disadvantages of this model are price monopoly, information asymmetry and manufacturer credibility. As the demand for customization increases, the retailer’s production
* Ming Dong [email protected] 1
Department of Operations Management, Antai College of Economics & Management, Shanghai Jiao Tong University, 1954 Hua Shan Road, Shanghai 200030, People’s Republic of China
demand involves more and more multi-category small batch orders, but unfortunately, relying on offline search, most orders cannot find suitable manufacturers. The difficulties that may arise are: retailers are difficult to find suitable manufacturers for each category; small batch orders are difficult to form large-scale production, so the cost is too high to be profit
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