Multi-Product of JMI under BOM

2. Description Of Multi-Product Bom Of Manufacturing Firms

In practice, manufacturing enterprises order a variety of raw materials for the production, at the same time order from multiple suppliers. The supplier does not know the manufacturer's actual demand for raw materials due to the existence of asymmetric information. The demand will be amplified in the process of information transmission from raw materials to suppliers since the order sends, leading to out of stock or inventory redundancy phenomenon, and it will not only affect the production of manufacturer, but also reduces the overall efficiency of the supply chain. According to the statistics of Chinese scholar Ma shi-hua, upstream to the downstream enterprise in our country can’t be timely and accurate delivery accounted for 18.53%, unsatisfied occupied 2.33%. We can infer that the synergy degree between manufacturing supply chain is very low and it is difficult to realize information sharing, resulting in overall low inefficiency of supply chain.