An Analysis of Motivation for Front Collaboration of AVE-based CPFR Mechanisms

Abstract

There exist inclination and selection processes in enterprises' front collaboration based on Agile Virtual Enterprises (AVE) and Collaborative Planning, Forecasting and Replenishment (CPFR) mechanisms. This paper analyzes the existing configurations and dynamic features of AVE collaborations; and it also explicates enterprises' management patterns that have shifted from vertical to horizontal integration and have displayed AVE characteristics, corresponding to CPFR mechanism and its front collaborative protocol management. It further points out that AVE front collaborative relationship consists of such factors as impact, intimacy and vision, particularly displaying AVE collaborative protocol and features. Based on the motivation for constructing front collaboration and conditional models for AVE-based CPFR mechanisms, this paper addresses four issues: (i) the desire for maximum returns for AVE members is the driving force for the formation and growth of AVE; (ii) AVE can improve resources' utilization effectively; (iii) inclination and selection processes play an important role when AVE's collaborative protocols are formulated; and (iv) capacity and efficiency are preconditions for enterprises to become AVE members.