Entropy Maximization Based Capability Allocation of Clothing Production Enterprises in Sharing Economy

Abstract

With the rapid development of sharing economy, clothing enterprises or suppliers may share their production capabilities between each other via the manufacturing cloud platform. In this paper, we consider the capability allocation of suppliers' production resources in order to maximize their utilization. We mainly adopt the entropy maximization theory to formulate the objective function. Three aspects of production costs are involved under the fixed budget of each supplier: (i) the unit transportation cost for one batch of raw materials or one unit of product; (ii) the unit processing cost of any supplier to process orders received from customers; (iii) the unit processing cost of any supplier to process orders shared by other suppliers. We use Taylor expansion to reformulate the objective function and construct a mixed-integer second order conic programming model (MISOCP) for the problem. After that we apply CPLEX to solve the model, and finally, the proposed model is employed to a case study for one clothing production enterprise.