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

  • School of Computer Science and Technology, Harbin Institute of Technology

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

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.

Original languageEnglish
Title of host publicationAgent Computing and Multi-Agent Systems
Subtitle of host publication9th Pacific Rim International Workshop on Multi-Agents, PRIMA 2006, Proceedings
PublisherSpringer Verlag
Pages315-326
Number of pages12
ISBN (Print)3540367071, 9783540367079
DOIs
StatePublished - 2006
Externally publishedYes
Event9th Pacific Rim International Workshop on Multi-Agents, PRIMA 2006 - Guilin, China
Duration: 7 Aug 20068 Aug 2006

Publication series

NameLecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics)
Volume4088 LNAI
ISSN (Print)0302-9743
ISSN (Electronic)1611-3349

Conference

Conference9th Pacific Rim International Workshop on Multi-Agents, PRIMA 2006
Country/TerritoryChina
CityGuilin
Period7/08/068/08/06

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