Turbulent times in the global economy do not imply a slow down in technological developments but a challenge for manufacturing enterprises to make the best use of these latest developments in order to retain their competitive edge. One of such current developments is the virtual factory concept, an application of the virtual enterprise strategy and an enabler of agility concepts in manufacturing. Virtual factories have being researched and established as an effective inter-enterprise integration strategy, for rapid and cost-effective development of complex products with short life cycle and a wide variety. Advancements in Internet technologies are also providing a suitable backbone not only for the distribution of non-proprietary information but also for every day more complex inter-enterprise transactions. This paper proposes an Internet based total virtual factory model that enables agile, inter-enterprise integration and supports the entire product's life cycle, right from design to the final distribution, completely via the Internet.
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