Joint Optimal Output of Members in Global Manufacturing Virtual Network System

Abstract: This paper analyzes the organizational structure of the Global Manufacturing Virtual Network (GMVN) and the material flow relationship between its members. In this paper we utilize an input-output model to describe the supply network of the GMVN. In addition to this, we discuss the manufacturing costs of in-theplan and out-of the-plan for short life-cycle products. Based on the aforementioned analysis and considering the demand uncertainty of short life-cycle products, we propose what we call the ‘joint optimal output model’ for members in GMVN for maximizing total profit of GMVN. We prove that the object function is concave and present the solution of optimal joint output.