Title: Towards an order-related allocation of profit in networked manufacturing structures

Authors: Hendrik Jähn

Addresses: Department of Economic Sciences, Chemnitz University of Technology, Thüringer Weg 7, 09126 Chemnitz, Germany

Abstract: The goal of most economic activities is to draw profit. While the problem of the allocation of profit usually does not arise in classical enterprises, this is one major challenge within collaborative networks. The reason is the multitude of involved enterprises. In this contribution a variety of approaches for allocating profit to the network participants are presented. Here the application in value-added process-specific configured manufacturing and production networks consisting of many independent very small, small and medium-sized enterprises is assumed. These approaches for profit allocation are based on both on two- and three-component-allocation-models which take into consideration the profit expectations of the network participants to a certain degree as well as the corresponding value-added shares and the number of participating enterprises in the networked value-added process. The variety of approaches delivers a toolset for the application if required.

Keywords: manufacturing network; network controlling; profit allocation; small and medium sized enterprises; quantitative methods; decision model.

DOI: 10.1504/IJDSRM.2017.090392

International Journal of Decision Sciences, Risk and Management, 2017 Vol.7 No.3, pp.232 - 254

Available online: 07 Mar 2018 *

Full-text access for editors Access for subscribers Purchase this article Comment on this article