Abstract Volatile market demands, frequent product replacement, short product style life-cycle in the small and medium-sized manufacturing clusters require the enterprises in the industrial clusters to be highly agile. In this paper, through qualitative institutional analysis, quantitative profit function description and computer simulation, we get the following conclusions: The agile ordering institution of small and medium-sized manufacturing cluster supply chain is non-reciprocal; The dealers make the initiative order decisions in accordance with market demand, while the manufacturers can only meet the dealer's demand passively through flexible production capacity. The non-reciprocal ordering institution increases the pressure on the small and medium-sized manufacturing enterprises and increases the dealers' supply interruption risk. And in the long term, the positive evolvement and the upgrading of the whole industrial cluster is hampered.
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Received: 03 July 2009
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Corresponding Authors:
JI Guo-jun
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