An Extended enterprise (EE) is a comprehensive conceptual framework that facilitates firms’ working synergistically. Through the Industry 4.0 framework, large orders from retailers can equitably be distributed (assigned) to small and medium-sized enterprises (SMEs). This paper reports research on modelling and simulation processes for distributing (allotting) apparel orders to a cluster of SMEs in an extended enterprise framework. The distribution processes discussed in this study are mainly on allocating, sharing or dividing order quantities among collaborating business entities within an EE framework. The study employed Arena software as one of the discrete-event simulation software packages to illustrate the distribution processes of order quantities, particularly when many retailers request apparel quantities from many manufacturers. Through an EE framework, firms can gain competitive advantages by strengthening their supply chain partnerships. Several activities need to be controlled and monitored by any virtual factory scheduler service, which distributes and optimises bulk orders amongst manufacturers.