Model for negotiating prices and due dates with suppliers in make-to-order supply chains

Authors:
Lanshun Nie;Xiaofei Xu;Dechen Zhan
Affiliations:
School of Computer Science and Technology, Harbin Institute of Technology, Harbin, P.R. China;School of Computer Science and Technology, Harbin Institute of Technology, Harbin, P.R. China;School of Computer Science and Technology, Harbin Institute of Technology, Harbin, P.R. China
Venue:
PRIMA'06 Proceedings of the 9th Pacific Rim international conference on Agent Computing and Multi-Agent Systems
Year:
2006

Citing 4
Cited 0

Bayesian learning in negotiation

International Journal of Human-Computer Studies - Evolution and learning in multiagent systems
Dynamics of complex systems

Dynamics of complex systems
Optimal Negotiation Strategies for Agents with Incomplete Information

ATAL '01 Revised Papers from the 8th International Workshop on Intelligent Agents VIII
A fuzzy due-date bargainer for the make-to-order manufacturingsystems

IEEE Transactions on Systems, Man, and Cybernetics, Part C: Applications and Reviews

Quantified Score

Hi-index	0.01

Visualization

Abstract

This study deals with the problem of supporting negotiation on prices and due dates of multiple orders between a manufacturer and its suppliers in a make-to-order supply chain. A new negotiation agenda with two phases is proposed based on the fact that relationship between the partners is both cooperative and competitive. In the cooperative phase a mediator implementing Simulated Annealing is incorporated to help the manufacturer and the supplier search tentative agreement of due dates which minimizes the total supply chain cost. Then, they adjust the reservation value and aspiration value of price accordingly based on the idea of integrated-utility. They bargain on the price issue using concession based methods in the competitive phase. The proposed negotiation agenda and approach can achieves near-optimal social welfare and reach win-win solution for negotiation agents. Result of a numerical example is reported.