Studies on mechanism and modeling of CPFR modules on AVE basis

As the global economic environment changes and information technology develops, demand has been oriented to individuality and diversity, product life-cycles have been shortened, and market uncertainty has greatly increased. Thus it is very difficult for the conventional pyramid-like construction to respond to market changes very quickly. The changeable market requires the corporate managerial structure to be simple and easy to reorganize and adjust. The demand for products also requires that enterprises should be creative in their research and development and conduct this at a fast pace. AVE is a new and effective corporate organizational and production concept in the virtual economic environment; CPFR is a scheme in which enterprise partners can pursue collaborative supply chains by snaring information, thus making it a forceful supplement for the concrete mechanism and principles of execution in AVE. This paper analyzes AVE and CPFR concepts and their relationship, proposes the mechanism for CPFR modules on an AVE basis and the expanded models for checking and manipulating n-level events, and explicates the integrative conditions for AVE-based CPFR system and further research orientations as well.