Collaborative Production in Networked Manufacturing

In this paper, we considered the synergy effect and effort of networked manufacturing and constructed the collaborative production model for both measures without guarantee and measures with guarantee. Our analysis shows that the moral hazard exists in the enterprise collaborative production without guarantee measures, and the enterprise will take a tradeoff effort level in order to maximize their profits when guarantee measures exist. Meanwhile, the enterprise can obtain more profits from the increase of synergy effect, the expansion of the networks size and the enhancement of leaning ability. Finally, we provided a numerical example.