An efficient revenue distribution method in a cyber-enabled manufacturing system

Considering a group of suppliers fulfilling the orders in an e-commerce platform, it is desirable for the platform operator to distribute the revenue in a way that the total net utilities of the platform and of each supplier are optimized. Based on the game theory, this paper presents a nonlinear revenue distribution rule to achieve Nash Equilibrium. Simulation studies show that, compared to the proportional and equal distribution rules, the proposed method yields the highest net utility for all. The present work demonstrates an approach to promoting broader participation of manufacturing activities in an internet-based platform enabled by cyber infrastructure.