Abstract: Although service-oriented manufacturing has provided the basic implementation framework for the traditional manufacturing enterprises to transform into producer service enterprises. However, such a framework lacks the support of the mathematical model. Postponement is introduced into a model that is widely applied in manufacturing enterprise to solve the following problems: (1) the best service capacity in the condition of manufacturing capacity constraints; (2) the movement problem of postponement point in the condition of the maximum profit; and (3) the minimum price to compensate for service module. Results show that output reduction in the condition of demand increase does not mean profit loss, and manufacturing enterprises can increase profit by getting postponement upstream in the manufacturing chain or outsourcing non-core manufacturing in the downstream.

Key words: serviceoriented manufacturing, postponement strategy, service module, customer order decoupling point, service capacity