Minimising manufacturing cost and production time parallel to raising the q
uality and the shipment reliability are important challenges in every produ
ction system. In case of distributed production systems the management of t
he above-mentioned criteria has great significance and needs a complex, co-
operative handling of the problems. A new, co-operative manufacturing netwo
rk model is proposed for co-ordinating the production of Small- and Medium-
sized Enterprises (SMEs), based on the holonic paradigm. The paper introduc
es the main modules of the model succinctly and describes an application un
der realisation in Hungary, in an agricultural SME network, pointing its ec
onomic benefits as well. (C) 2000 Elsevier Science B.V. All rights reserved
.